Air India losses double to Rs.5,000 cr

Cash-strapped national carrier Air India's losses for last fiscal are expected to more than double to Rs.5,000 crore owing to the economic meltdown and low yields bringing the total to Rs.7,226 loss in last two fiscals, Aviation Minister Praful Patel said on Tuesday.

Cash-strapped national carrier Air India's losses for last fiscal are expected to more than double to Rs.5,000 crore owing to the economic meltdown and low yields, Aviation Minister Praful Patel said on Tuesday.

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Air India had incurred a loss of Rs.2,226.16 crore during 2007-08, Patel told the Rajya Sabha.

The flag carrier of the country is making losses since 2004-05.

Patel also said National Aviation Co of India Ltd (NACIL), which operates Air India, has taken several initiatives to turn around the performance of the company by focusing on cost reduction and revenue enhancement.

The government has assured support to the national carrier in the form of equity infusion and the first instalment of Rs.400 crore is expected by January 2010.

However, it also asked Air India to reduce costs by at least Rs.2,000 crore by the end of the current fiscal.

Meanwhile, the Committee of Secretaries has taken note of the proposals for restructuring Air India.