AI loss zooms to Rs 6,994 cr
Bleeding state-run carrier Air India (AI), burdened with overhead costs, has sunk deeper into losses in 2010-11. Tushar Srivastava reports. Flying into a storm, yet againUpdated: Jul 11, 2011 01:30 IST
Bleeding state-run carrier Air India (AI), burdened with overhead costs, has sunk deeper into losses in 2010-11.
The carrier posted a post-tax loss of Rs 6,994 crore against Rs 5,552 crore in the previous fiscal, an increase of nearly Rs 1,500 crore of 26%, according to figures obtained by Hindustan Times from company sources.
While the company hasn't officially announced its results for 2010-11, they were presented to the top management at a meeting in the last week of June. When contacted, AI said the audit for FY 11 was nearly complete.
Pre-tax losses yawned to Rs 7,196 crore in the latest fiscal year from Rs 5,634 crore - a 28% jump.
"This is the time for alarm bells to be loudly rung so as to make all those in government turning a deafening ear to take immediate corrective action," said Jitender Bhargava, a former executive director of AI. "Air India has singularly failed to reap the benefit in a market witnessing double-digit growth."
AI's accumulated losses are estimated to be more than Rs 20,000 crore. The airline has 40,000 employees with a employee-aircraft ratio of 243:1, compared with an industry average of 150:1.
Jet Airways made an after-tax profit of Rs 9.7 crore in fiscal year 2011, turning around from a post-tax loss of Rs 467.6 crore a year earlier, while SpiceJet increased its profit to Rs 101.15 crore from R61.45 crore in fiscal 2010. AI, which has a domestic market share of 13.2%, has fallen to the fifth position in a market that has six major airlines.
AI's operating expenses for FY 11 were Rs 17,875 crore while the operating revenue was Rs 13,918 crore, resulting in an operating loss of Rs 3,957 crore. Total revenues were Rs 13,964 crore and total expenses were Rs 21,160 crore.