Aircraft sale to prune Nacil's loss

New Delhi: An aircraft sale and lease-back deal clinched in the closing moments of the last financial year will save the merged Air India-Indian Airlines entity from posting one of its worst ever financial results. The company, National Aviation Company of India Ltd (NACIL), sold and leased back eight aircraft — three old jumbos and five A-320s — for $320 million.
In 2006-07, the combined entity posted a loss of Rs 700 crore. In the fiscal year just concluded (2007-08), the loss is expected to be much above Rs 1,000 crore. This deal amount will now be reflected in 2007-08 results and though not fully wipe out the losses, will lower the final loss amount substantially.
While NACIL is yet to see the benefits of merger, the company is coming under increasing pressure from all counts — HR woes, high fuel bills, payment liabilities of new planes that have begun joining the fleet and dipping yields. As many as 31 of the 111 new Boeing and Airbus aircraft ordered by AI and IA have already joined the fleet.
Even after the infusion of $320 million, NACIL is unlikely to report a profit for 2007-08.
10/04/08 Saurabh Sinha/Times of India

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