Air India likely to post loss similar to previous fiscal’s

New Delhi: Despite having saved around Rs 500-600 crore in the last six months and increased revenue realisation, the loss-stricken Air India is likely to post losses of the same order as 2008-09 this fiscal, finding it difficult to bite the bullet on some key issues like wage cuts.
Air India posted losses of around Rs 5,000 crore in 2008-09. The state-owned airline was told to pull up its socks and increase its aircraft utilisation from 8.5 hours at present to around 12 hours, which is an industry standard. In a review meeting chaired by the civil aviation minister Praful Patel, in the presence of other senior ministry and airline officials, the carrier said that it plans to utilise the recently sanctioned Rs 800 crore by government for repayment of loans and clearance of outstanding dues to various vendors.
“The decision on a wage cut is on hold for now as the carrier is yet to finish consultations with all the stakeholders like unions and arrive at a consensus,” said an official present at the meeting.
06/01/10 Indian Express

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Categories: NACIL Jan 2010