Air India aims to trim losses by 75% in 18 months

New Delhi: In an ambitious turnaround plan Air India is looking to reduce losses by75% over the next 18 months. The carrier reported net loss of Rs 5,400 crore in 2009-10, but due to various cost rationalisation and revenue generation measures, it is looking to bring down this figure to around Rs 1200 crore by the end of FY12.
Chairman and MD Arvind Jadhav said that losses will be paired by 75% and also indicated that by making Delhi a hub for international as well as domestic flights, the carrier is already looking at increase in passenger traffic.
Jadhav’s comment came at a time when the government is seeking a concrete turnaround plan from the ailing airline in return for further equity infusion.
To a question on debt restructuring Jadhav said that the July 16 deadline for bank bids to refinance $1.15 billion of debt has been extended to August. The airline is seeking to recast the loans, taken to purchase 21 airbus planes, to pair interest costs.
14/07/10 Sindhu Bhattacharya/Daily News & Analysis

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Categories: NACIL Jul 2010