Interest, depreciation, rentals make up 80 pc of AI losses

Mumbai: Around 80 per cent of the Rs-5,548 crore losses posted by the National Aviation Company of India last financial year are on account of interest payment on borrowings, depreciation and lease rentals.
"NACIL posted a loss of Rs 5,548 crore in the last financial year. Interest payment, depreciation and lease rentals account for almost 80 per cent of this loss," informed sources told media here.
Civil Aviation Minister Praful Patel had last week said that NACIL, Air India's holding company, was expected to incur a loss of approximately Rs 5,400 crore during the year 2009-10 and that "the trend of losses is likely to continue for few more years."
While interest payments accounted for Rs 1,665 crore, depreciation amounted to Rs 1,090 crore, the sources said. In addition, the company paid Rs 1,000 crore towards rentals for leased aircraft during 2009-10, the source added.
Interest payments and depreciation accounted for 67-68 per cent of the total losses while lease rentals made up for another 12 per cent, they said.
The sources said the airline was estimating that during the next financial year 2010-11, interest payments on borrowings are likely to rise to around Rs 2,400 crore and depreciation to about Rs 1,400 crore, against the current levels of Rs 1,665 crore and Rs 1,090 crore respectively.
14/03/10 Press Trust of India/Economic Times

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Categories: NACIL Mar 2010