BackAir India cuts net loss to ₹5,547.47 crore
Air India has achieved the target set out in the TAP and has made substantial progress in both operational as well as financial areas
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New Delhi: National carrier Air India Limited has reduced its net loss by more than a quarter to ₹ 5,547.47 crore in the previous fiscal as compared to a net loss of ₹ 7,559.74 crore in FY12, government said on Monday.
Air India has achieved the target set out in the Turn Around Plan (TAP), and has made substantial progress in both operational as well as financial areas, Minister of State for Civil Aviation Minister Mahesh Sharma told Lok Sabha on Monday.
The main areas in which the company has registered improvements in FY15 in comparison to fiscal 2011-12 include seat factor, network yield, revenue from passengers and on-time performance on the operational side, he said.
The airline has also seen lower operating and net loss during the period, the Minister said. Since the implementation of TAP/ Financial Restructuring Plan (FRP), the operating loss has reduced from ₹ 5,138.69 crore in the fiscal 2011-12 to ₹ 2,171.40 crore in the year ended March 31, 2015, and the net loss has come down to ₹ 5,547.47 crore in 2014-15 from 7,559.74 crore in 2011-12, the Minister said.
The erstwhile UPA dispensation had in April 2012 approved Air India’s turnaround plan and a financial restructuring plan, with a committed public funding of ₹ 30,231 crore, staggered over a period of nine years, with some specific riders.
The seat factor has improved to 73.1% in 2014-15 from 67.9% in FY 15 whereas the network yield stood at ₹ 4.35 revenue passenger kilometer (RPKM) in the period as against ₹ 3.74 RPKM in fiscal 2011-12. Besides the number of revenue passengers also increased to 16.9 million in FY15 from 13.4 million in FY 12, he said.
The overall network OTP delivered during the previous fiscal stood at 72.7% as against 67.6% in 2011-12, Sharma said. On the financial performance, besides reducing operating and net loss during the period, the carrier has turned EBITDA (earnings before Interest, Taxes, Depreciation and Amortization) positive by ₹ 541.6 crore in FY 15 as against a negative EBIDTA of ₹ 2,236.95 crore in 2011-12, he said.
The total revenue also rose by 33.25% to ₹ 19,781 crore in the last fiscal as compared to ₹ 14,713.81 crore in FY12, he added. There has been, however, a nominal increase in the aircraft maintenance cost, which during 2014-15 stood at ₹ 1,145 crore as compared to ₹ 830.81 crore on 2011-12, the Minister said.
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