Air India Expects Return to Profit on Merger, Travel

Air India, the nation's state-owned airline, expects to return to profit next fiscal year on cost savings from a merger and increased travel demand, the first time the carrier has made such a forecast.
The airline may earn a profit in the year ending March 31, 2009, V. Thulasidas, chairman of the airline's parent, National Aviation Co. of India Ltd., said in a Bloomberg TV interview in Singapore today. Air India will also decide on ordering more planes this year for deliveries beyond 2012, he said.
Returning to profit after two years of losses may help Air India fund the purchase of 111 planes ordered from Airbus SAS and Boeing Co. India last year merged the two state-owned airlines, Air India and Indian Airlines Ltd., to compete with Jet Airways (India) Ltd. and Kingfisher Airlines Ltd.
Mumbai-based Air India Ltd., the state overseas carrier, and Indian Airlines, its New Delhi-based domestic counterpart, were merged to form the National Aviation Co. The combined company, which uses the name Air India, has a fleet of 142 aircraft and had revenue of about 170 billion rupees ($4.3 billion) in the year ended March 31, 2006.
19/02/08 Anand Krishnamoorthy and Bernard Lo/Bloomberg

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Categories: Air India - International Feb 2008, Air India Budget Feb 2008, Air India Domestic Feb 2008, Air India Regional Feb 2008, NACIL Feb 2008