Mumbai/New Delhi: National carrier Air India is set to reduce its aircraft loans after finance minister Arun Jaitley allocated Rs 1,800 crore toward retiring debt that has been raised to fund fleet expansion of the debt-laden airline.
New Delhi-based Air India, which is battling both full-service and low-cost private carriers for market share at home and the country’s immediate neighbourhood, has debt of about Rs 45,000 crore on its balance sheet: of the loans, Rs 14,000 crore are aircraft loans, while the rest are working capital funds that include non-convertible debentures of Rs 7,500 crore. Founded in 1932 and a near-monopoly until the 1990s, Air India has lost market share to more nimblefooted private carriers in one of the world’s fastest-expanding aviation markets.
A reduction in fuel prices and efforts to pare down costs helped Air India turn in a better financial performance, although the carrier still accounts for the biggest quantum of industry losses.
In FY16, the airline posted a net loss of Rs 3,837 crore as compared to .Rs 5,859 crore in the previous year.
03/02/17 Anirban Chowdhury & Mihir Mishra/Economic Times
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New Delhi-based Air India, which is battling both full-service and low-cost private carriers for market share at home and the country’s immediate neighbourhood, has debt of about Rs 45,000 crore on its balance sheet: of the loans, Rs 14,000 crore are aircraft loans, while the rest are working capital funds that include non-convertible debentures of Rs 7,500 crore. Founded in 1932 and a near-monopoly until the 1990s, Air India has lost market share to more nimblefooted private carriers in one of the world’s fastest-expanding aviation markets.
A reduction in fuel prices and efforts to pare down costs helped Air India turn in a better financial performance, although the carrier still accounts for the biggest quantum of industry losses.
In FY16, the airline posted a net loss of Rs 3,837 crore as compared to .Rs 5,859 crore in the previous year.
03/02/17 Anirban Chowdhury & Mihir Mishra/Economic Times
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