AI loss zooms to Rs 6,994 cr

New Delhi: Bleeding state-run carrier Air India (AI), burdened with overhead costs, has sunk deeper into losses in 2010-11. The carrier posted a post-tax loss of Rs 6,994 crore against Rs 5,552 crore in the previous fiscal, an increase of nearly Rs 1,500 crore of 26%, according to figures obtained by Hindustan Times from company sources.
While the company hasn't officially announced its results for 2010-11, they were presented to the top management at a meeting in the last week of June. When contacted, AI said the audit for FY 11 was nearly complete.
Pre-tax losses yawned to Rs 7,196 crore in the latest fiscal year from Rs 5,634 crore - a 28% jump.
"This is the time for alarm bells to be loudly rung so as to make all those in government turning a deafening ear to take immediate corrective action," said Jitender Bhargava, a former executive director of AI. "Air India has singularly failed to reap the benefit in a market witnessing double-digit growth."
AI's accumulated losses are estimated to be more than Rs 20,000 crore. The airline has 40,000 employees with a employee-aircraft ratio of 243:1, compared with an industry average of 150:1.
10/07/11 Tushar Srivastava/Hindustan Times

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Categories: Air India Jul 2011