AI may show operating profit in current year
State-owned Air India (AI) is likely to post an operating profit in 2012-13 - the first time since its merger in 2007. HT reports.india Updated: Feb 27, 2013 20:36 IST
State-owned Air India (AI) is likely to post an operating profit in 2012-13 - the first time since its merger in 2007.
"It is expected that the company will achieve positive EBIDTA (earnings before income, taxes, depreciation and amortization) in the results for the financial year 2012-13," the Economic Survey said.
AI, the survey noted, had registered an all-round enhanced performance such as on-time performance at 85%, passenger load factor at 70.9% and yield at R4.31 per revenue passenger kilometer. "For the first half of the year, performance has been in line with the target set in the turnaround plan," it added.
In April, the government had approved a turnaround plan and a financial restructuring plan for improving the operational and financial performance of AI.
The survey noted that the national carrier has taken several initiatives towards cost cutting and revenue enhancement during the year as per its turnaround plan.
This includes route rationalisation, phasing out and grounding of old fleet, freezing of employment in non-operational areas, leveraging assets of the company to increase MRO (maintenance, repair, and overhaul) revenue and revenue from the company's real estate properties, it said.
The turnaround plan also included operationalisation of subsidiary companies in ground handling and MRO and transfer of manpower and equipment so that these could be treated as independent profit centers.
That apart, an oversight committee in the civil aviation ministry has been constituted to closely monitor the performance of AI.