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.