Business Daily from THE HINDU group of publications
Thursday, Nov 12, 2009
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Thursday, Nov 12, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
|
|
|
|
|
Home Page
-
Financial Performance Corporate Results - Airlines Air India losses double to Rs 5,548 crore
The Maharaja is still deep in the woods. Our Bureau New Delhi, Nov. 11 Increase in fuel costs and falling yields have seen Air India more than double its post-tax losses to Rs 5,548.26 crore in 2008-09. The airline had reported a loss of about Rs 2,200 crore the previous year. The annual accounts for 2008-09 were approved by the airline board at its meeting in Chennai on Wednesday. The airline saw its revenue decline by 11.6 per cent to Rs 13,479 crore in 2008-09 from Rs 15,252 crore the previous year mainly on account of global recession, and fall in load factors and passenger yields. Air India reported a 21.5 per cent decline in passengers carried at 10.36 million as against 13.21 million flown in 2007-08. The other significant factors contributing to the losses include increase in depreciation costs due to induction of aircraft, increase in interest on aircraft loans and borrowing and loss on foreign exchange due to a depreciating rupee, the airline said in a statement. The airline has ordered 111 new aircraft at an estimated value of Rs 40,000 crore. During the year the carrier inducted more than a dozen planes into its fleet, including seven Airbus A-320 and three Boeing 737-800, the airline Web site shows. To curtail losses, Air India plans to cut back on a number of loss-making routes including withdrawing the Mumbai-New York daily non-stop flight. Sources indicated that curtailing such routes will help the airline save close to Rs 500 crore during the forthcoming winter schedule, which ends in March next year. Air India also plans to reduce leased aircraft in its fleet, rationalise wages and phase out the older variety of aircraft to show better operational performance in 2009-10, the statement added. The board approved the financial results a day before the Group of Ministers is to meet here to decide on a package for reviving the financial fortunes of the airline. The management is expected to submit a road map outlining steps that it plans to implement to reduce the mounting losses and the possible fallout of these moves, especially on the workforce front. Air India plans to lease out aircraft may not take off Air India cancels 13 domestic flights as 20 pilots report sick More Stories on : Financial Performance | Airlines
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2009, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|