AI loss mounts to Rs 5,400 crore

Loss in past two years: Rs 2,226.16 cr and Rs 5,548 cr

GN Bureau | March 9, 2010



National Aviation Company of India Limited (NACIL) is expected to incur a loss of Rs.5400 crores approximately during the year 2009-10. It had incurred a loss of Rs 2,226.16 crores and Rs 5,548 crores during the financial years 2007-08 and 2008-09 respectively. The trend of losses is likely to continue for few more years.

NACIL has initiated action as part of the turnaround plan alongwith cost reduction and revenue enhancement programme focusing on Fleet Rationalisation, Route Profitability, Manpower Rationalisation and Structural Changes. The cost reduction/turnaround plan envisages benefits of Rs.1911 crores for the financial year 2009-10. However, NACIL has implemented various initiatives which will only result in savings of Rs.753 crores in Financial Year 2009-10.

Air India’s total outgo on lease rental payments for 2007-08 was Rs.717.20 crores, for 2008-09, Rs.811.00 crores and for 2009-10 (upto February, 2010) Rs.759.25 crores respectively.

The outstanding fuel dues of NACIL till the end of January, 2010 was Rs.1741 crores. The government had advised NACIL to clear these dues expeditiously.

Additional measures to enhance revenues are part of the turnaround plan. These will includes measures to enhance yields and improve load factors that have remain depressed in the recent years. Additional measures to cut costs including wage rationalization and other expenses are also part of the turnaround process.

These informations were given by the Minister of Civil Aviation, Shri Praful Patel in written reply to a question in Rajya Sabha on Tuesday.
 

Comments

 

Other News

Maharashtra adopts hybrid model for Census 2026 data collection

The government has initiated preparations for Census 2026 in Maharashtra, introducing a hybrid approach that combines optional self-enumeration with comprehensive door-to-door data collection to ensure complete coverage across the state.   According to senior officials, the Self-

What the nine Indian Nobel winners have in common

A Touch Of Genius: The Wisdom of India’s Nobel Laureates Edited by Rudrangshu Mukherjee Aleph Books, Rs 1499, 848 pages  

Income Tax dept holds Ghatkopar Outreach on new IT Act

The Income Tax Department organised an outreach programme in Ghatkopar, Mumbai, to raise awareness about the key features of the Income Tax Act, 2025, effective April 1, 2026. The initiative is part of a nationwide effort to promote taxpayer awareness, simplify compliance, and strengthen a transparent, eff

Making AI work where governance is closest to people

India’s next governance leap may not solely come from digitisation. It will come from making public systems more intelligent, more adaptive, and more responsive to the dynamics at the grassroots. That opportunity is especially significant at the panchayat level, where governance is not an abstract po

Borrowing troubles: How small loans are quietly trapping youth

A silent crisis is playing out in the pocket of young India, not in stock markets or government treasuries, but in smartphones of college students and first-jobbers who clicked on the Apply Now button without reading the small print.  A decade ago, to take a loan, you had to do some paperwor

A 19th-century pilgrim’s progress

The Travels of a Sadhu in the Himalayas By Jaladhar Sen (Translated by Somdatta Mandal) Speaking Tiger Books, 259 pages, ₹499.00  


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter