Air India headed for Rs 5,400-cr loss in FY' 10

Ailing national carrier Air India is headed for a Rs 5,400 crore loss during the financial year ending March 31, 2010, which will take the airline's cumulative loss over the last three years to a massive Rs 13,174 crore.
Disclosing this in the Rajya Sabha on Tuesday, civil aviation minister Praful Patel said the loss- making trend will continue "for a few more years." This rules out any hope of a quick turnaround for the national carrier that has now fallen back on the government's financial support to run its day-to-day operations.
The airline does not even have enough money to pay its fuel bills as its "outstanding dues to the public sector oil companies have shot up to Rs 1,741 crore," the minister said.
The government has advised National Aviation Company of India Ltd (NACIL), the holding company for Air India, to clear these dues expeditiously, the minister added. Air India has incurred a loss of Rs 2,226.16 crore and Rs 5,548 crore during the financial year 2007-08 and 2008-09 respectively.
The government has extended a Rs 800 crore lifeline to Air India and asked for a turnaround plan which includes targets for cost reduction, before the funds could be released in two installments.
However, Patel painted a dismal scenario over the cost reduction plans as well.
10/03/10 Mail Today/India Today

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Categories: NACIL Mar 2010