Now, AI defers expansion plans

New Delhi: Close on heels of Jet Airways announcing it won't expand for two years, national carrier Air India has decided to spread its wings only from next winter. Battling huge losses, the recently integrated National Aviation company of India Ltd (NACIL) will focus on sorting out merger blues and improving its bottomline before launching new flights next winter.
"While budgeting for the fiscal 2008-09, NACIL had estimated its fuel bill would be Rs 6,500 crore. The five straight jet fuel hikes from April to August has led to an additional burden of 63% or Rs 1,500 crore for this period. This is a stupendous amount that no budget could have provided for," NACIL CMD Raghu Menon told TOI on Friday. The airline has now sought equity infusion to the tune of Rs 1,300 crore from the government so that its paid-up capital of Rs 145 crore is closer to the authorised capital of Rs 1,500 crore.
While seeking funds, the airline has cut three of its biggest loss-making flights.
13/09/08 Saurabh Sinha/Times of India

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Categories: NACIL Sep 2008