National carrier Air India is expected to shave off its losses by around 40% to Rs 3529.80 crore for this fiscal even as its borrowings stood at over Rs 51,000 crore in the previous financial year, Government said on Thursday.
Till date, the Government has pumped in Rs 22,280 crore into the airline, which is expected to report operating profit to the tune of Rs 6.20 crore in this fiscal, Minister of State for Civil Aviation Mahesh Sharma said in a written reply.
The Government owned airline had in the fiscal ended March 31, 2015, reported a net loss of Rs 5859.91 crore, Sharma said. The Minister said that Air India has been suffering losses for the past many years due to several factors including adverse impact of exchange rate variations due to weakening of Indian rupee, high interest burden, increase in competition especially the low-cost carriers and high debt-equity ratio.
Air India was provided a Rs 30,231 crore lifeline by the parent, Indian Government, in 2012 under a turnaround plan, stretching over period of nine years to keep it afloat. However, the package came with some specific riders.
25/02/16 PTI/Daily News & Analysis
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Till date, the Government has pumped in Rs 22,280 crore into the airline, which is expected to report operating profit to the tune of Rs 6.20 crore in this fiscal, Minister of State for Civil Aviation Mahesh Sharma said in a written reply.
The Government owned airline had in the fiscal ended March 31, 2015, reported a net loss of Rs 5859.91 crore, Sharma said. The Minister said that Air India has been suffering losses for the past many years due to several factors including adverse impact of exchange rate variations due to weakening of Indian rupee, high interest burden, increase in competition especially the low-cost carriers and high debt-equity ratio.
Air India was provided a Rs 30,231 crore lifeline by the parent, Indian Government, in 2012 under a turnaround plan, stretching over period of nine years to keep it afloat. However, the package came with some specific riders.
25/02/16 PTI/Daily News & Analysis
