New Delhi: In November 2012, Air India made a positive Ebitda (earnings before interest, taxes, depreciation and amortization) of Rs 20 crore, for the first time since its merger with Indian Airlines, showing it is making a revival of sorts, a senior executive of Air India said on Friday.
“However, Air India will need to monetise its assets within this fiscal to show positive Ebitda in 2012-13, as per the turnaround plan. We are also hoping for positive Ebitda in December,” said the executive.
In the same month last year, Air India made an Ebitda loss of around Rs 150 crore.
Also, with the gradual shrinking of Mallya-owned Kingfisher Airlines and rise in fares by 30-40 per cent in 2012-13 as compared to last year, the carrier improved its market share from 16 per cent to 20 per cent in the last seven to eight months.
“Any indicator turning positive for Air India is a good sign for them, as well as industry. It is a good trend. However, we will have to see it for a quarter or a year to see how much the turnaround plan paid off. But definitely, the capacity gap left by Kingfisher benefited Air India,” noted Amrit Pandurangi, senior director of Deloitte.
12/01/13 Business Standard
