Air India narrows its operating loss

Mumbai: Loss-laden national carrier Air India, grappling with the aftermath of the nation’s worst air disaster this decade and bracing for another strike by employees, finally has something to cheer.
The carrier, run by National Aviation Co. of India Ltd (Nacil), managed to narrow its operating loss by more than one-third in the fiscal that ended 31 March and at least 16 banks have queued up with offers to refinance a $475 million (Rs2,208.75 crore) aircraft acquisition loan as part of its restructuring programme.
“Lower jet fuel prices, brand new fleet and marginal savings in the wage bill have helped Air India to lower its operating loss by 36% in fiscal 2010,” said a senior government official, who did not want to be named. “The financial results are being audited by the government now. Moreover, the carrier is getting better quotes from international and domestic banks for refinancing its loans.”
The official didn’t reveal the exact operating loss posted by the airline. The operating loss for the previous fiscal hasn’t been made public yet.
In the October-December quarter, the state-owned airline had posted a 9.7% decline in net loss to Rs1,473.85 crore, from Rs1,632.23 crore in the corresponding period of last year.
30/05/10 P.R. Sanjai/Live Mint

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Categories: NACIL May 2010