NACIL expected to register loss of Rs 5,000 cr

New Delhi: The National Aviation Company of India (NACIL), formed in 2007 with the merger of Air India and Indian Airlines, was expected to register a loss of around Rs 5,000 crore in the last fiscal, the government today said.
"NACIL expects to register a loss of about Rs 5,000 crore in 2008-09," Civil Aviation Minister Praful Patel said while replying to a query in Rajya Sabha.
Citing global downturn and rising oil prices as the main reasons for the losses, Patel said, "The losses have been largely due to operating losses, which have been compounded due to the present economic recession as also the high oil prices last year and the debt servicing on new aircraft."
The Minister said that due to NACIL's deteriorating financial position, the company has been advised to formulate its restructuring plan and revisit its proposal for infusion of equity and soft loan from the government.
Meanwhile, replying to another query, Patel said that almost all private airlines were also making losses due to the spiralling aviation turbine fuel (ATF) cost, economic slowdown and the low load factor. Patel said that in a letter to the Prime Minister in June this year, the Airport Corporation Employees Union had mentioned issues such as aircraft acquisition, bilateral rights, over sector capacity induction in domestic sectors and merger of erstwhile Air India and Indian Airlines as the possible causes of the present financial position of the NACIL.
21/07/09 Press Trust of India/Business Standard

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Categories: NACIL Jul 2009