New Delhi: The Directorate General of Civil Aviation (DGCA) has recommended giving financial autonomy to Air India Charters Ltd (AICL), the company which runs Air India Express, the low-cost brand of Air India operating in the international sector.
“From a safety perspective, it is imperative that AICL be given financial autonomy,” said a financial audit report done by the aviation regulator.
The DGCA decided to go for a financial audit of all the airlines after Kingfisher Airlines grounded planes and cancelled flights without prior information. A safety audit had raised issues on the functioning of Kingfisher and AI Express. The audit of Air India is currently on.
AI Express is the international low-cost carrier subsidiary of the government carrier, and operates in West Asian and Southeast Asian countries with its base in central Kerala’s Kochi. The airline operates 204 flights a week and connects 14 international destinations
The airline, with an equity base of Rs 30 crore, operates 21 Boeing 737-800 aircraft. Of the 21 aircraft, 17 are owned by the company, while the rest are on lease.
AI Express has accumulated losses of Rs 1,105 crore and is estimated to incur losses of Rs 430 crore in the current fiancial year. It has a debt of over Rs 3,687 crore, comprising Rs 2,387 crore (long term for aircraft acquisition) and Rs 1,300 crore (short term).
31/01/12 Mihir Mishra/Business Standard
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