Thursday, February 08, 2018

Air India's loss widens to Rs 57 bn in FY17 from Rs 38 bn in FY16

New Delhi: Contrary to popular belief that Air India made a turnaround under the current National Democratic Alliance government, figures show that its loss widened instead. According to figures provided in Parliament by minister of state for civil aviation Jayant Sinha, the state-owned carrier registered a loss of Rs 57.65 billion in FY17, Rs 19.29 billion higher than Rs 38.36 billion loss in FY16.
The figures reflect significant deviation from the minister’s own parliamentary disclosure on July 27, 2017. Sinha had then said that Air India’s provisional loss for FY17 was Rs 37.28 billion — almost Rs 20 billion less than the actual figure.
Questions sent to Sinha’s office didn’t elicit any response till the time of going to press.
Senior Air India officials said the inflation in losses is likely due to certain non-disclosures by the company in the provisional figures. “The original provisional figures were of conservative estimate. The new figures include additional provisioning arising out of the Dharmadhikari Report and demands from Serve from India Scheme (SFIS), which can no longer be utilised as the scrips have expired,” he said.
Total claim from SFISs amount to Rs 11,551.50 million.
08/02/18 Arindam Majumder/Business Standard