Press Esc to close

Air India operating profit more than doubles to Rs 298 cr in FY17

Press Trust of India, New Delhi, Feb 8 2018, 16:37 IST
The national carrier's net loss widened to Rs 5,765 crores.

The national carrier's net loss widened to Rs 5,765 crores.

Air India has been "consistently improving" its overall performance and more than doubled its operating profit to Rs 298.03 crore in the last financial year, according to the government. The net loss of the state-owned airline, however, widened to Rs 5,765.16 crore in 2016-17.

The divestment-bound national carrier had an operating profit of Rs 105 crore in 2015-16. "Air India has been consistently improving its overall financial and operational performance since the implementation of the turnaround plan by the government," Minister of State for Civil Aviation Jayant Sinha said in a written reply to the Lok Sabha today.

In 2015-16, Air India had an operating profit of Rs 105 crore while net loss stood at Rs 3,836.77 crore. The previous UPA government, in 2012, had approved a turnaround plan under which Air India is to receive a total equity infusion worth Rs 30,231 crore up to 2021 subject to meeting certain performance thresholds. Out of the total amount, Rs 26,545.21 crore has already been infused into the airline till now.

As part of the turnaround plan, Air India has been taking various measures, including rationalisation of routes and enhanced utilisation of aircraft. The airline's total loans amounted to Rs 48,447.37 crore in 2016-17. This includes aircraft and working capital loans of Rs 17,359.61 crore and Rs 31,087.76 crores, respectively. Sinha said the draft expression of interest document inviting a proposal for the airline's disinvestment is yet to be finalised by the Air India Specific Alternative Mechanism (AISAM).

"Formal proposals from prospective bidders would be received thereafter only. Any unsolicited expressions of interest at this stage are not relevant," he said. In June 2016, the Cabinet Committee on Economic Affairs (CCEA) had given its in-principle approval for considering strategic disinvestment of Air India and its five subsidiaries. It also constituted the AISAM, which is headed by Finance Minister Arun Jaitley. The panel would decide on hiving off certain assets to a shell company, the entities to be offered for sale during the bidding process, the quantum of disinvestment and the universe of bidders, Sinha said in a separate reply. To another reply, he said the Air India Museum project has been put on hold due to the ongoing disinvestment process. There was a proposal to set up a museum of arts and crafts in Mumbai to showcase the collection of Air India.

Go to Top

More from this section
Most trending stories
Photo Gallery
A view of Sunder Nursery at Hazrat Nizamuddin in...

A view of Sunder Nursery at Hazrat Nizamuddin in...

Mahila Congress activists make 'pakodas' to protest against alleged unemployement...

Mahila Congress activists make 'pakodas' to protest against alleged unemployement...

Canadian Prime Minister Justin Trudeau and First Lady Sophie Grgoire greet visitors...

Canadian Prime Minister Justin Trudeau and First Lady Sophie Grgoire greet visitors...

Gold medalist Mariama Jamanka of Germany gets lifted by silver medal winner Lauren Gibbs...

Gold medalist Mariama Jamanka of Germany gets lifted by silver medal winner Lauren Gibbs...

Union Textile Minister Smriti Irani addresses a session during UP Investors Summit 2018 at...

Union Textile Minister Smriti Irani addresses a session during UP Investors Summit 2018 at...

A helicopter is seen flying over the besieged town of Douma, Eastern Ghouta...

A helicopter is seen flying over the besieged town of Douma, Eastern Ghouta...

Transgender Shanavi Ponnusamy arrives at the chief minister's cell at...

Transgender Shanavi Ponnusamy arrives at the chief minister's cell at...

Lufthansa tests humanoid robot 'Josie Pepper' at airport...

Lufthansa tests humanoid robot 'Josie Pepper' at airport...

Chief of the Air Staff, Air Chief Marshal B.S. Dhanoa presents a memento to the...

Chief of the Air Staff, Air Chief Marshal B.S. Dhanoa presents a memento to the...

Alpine Skiing - Pyeongchang 2018 Winter Olympics - Women's Downhill Training...

Alpine Skiing - Pyeongchang 2018 Winter Olympics - Women's Downhill Training...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.