| Date: |
04-09-2013 |
| Subject: |
Air India posts loss of over Rs 5,000 crore |
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For the sixth successive year national carrier, Air India has suffered massive losses running into several thousand crores. As per the provisional figures, the Maharajah ran up losses to the tune of Rs 5,199 crore in 2012-13. In the year before period, the national airline had reported losses of around Rs 7,560 crore.
According to the Union Ministry of Civil Aviation (MoCA) the loss figures, which were provisional, could further go up as a result of the spiralling cost of the aviation turbine fuel (ATF) and the global economic slowdown.
“The Centre is looking at several measures to contain the mounting losses including the execution of some of the recommendations of a Working Group on Civil Aviation. This also includes the direct import of ATF by the airlines on actual user basis and eliminating route network that involves parallel operations,” an official said.
MoCA officials said the induction of new aircraft and route rationalisation will hopefully bring in some positive response in the next couple of years. Meanwhile, they have also written to the authorities concerned to recover the dues from the government departments, which would be in the range of Rs 300 crore plus.
Besides, the AI management is further concentrating on its budget airline -- Air India Express -- by sanctioning more aircraft to service its lucrative Middle East and South-East Asia routes.
The ministry has also drawn up plans to increase the AI Express’ fleet strength, to 36 from the existing 21 aircraft, in the next five years. And MoCA sources said the whopping losses incurred by the AI were mainly due to the depreciating value of the rupee and the intense competition in the aviation sector.
“Not just the AI, but other airlines are also incurring losses due to the steep rise in the fuel prices and depreciation of the rupee triggering a huge operational cost. The losses have come down from 2012, following implementation of some measures but we still need to tide over the slowdown,” they said.
Source : newindianexpress.com
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