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Air India may incur Rs5,400 cr loss in FY10, says Patel

Air India may incur Rs5,400 cr loss in FY10, says Patel
PTI
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First Published: Tue, Mar 09 2010. 03 41 PM IST
Updated: Tue, Mar 09 2010. 03 41 PM IST
New Delhi: National carrier Air India is expected to incur a loss of about Rs5,400 crore during 2009-10 and the trend of losses is likely to continue for few more years, Parliament was informed on Tuesday.
The total loss incurred by the airline in the past three financial years is likely to reach Rs13,174.16 crore.
“Air India has incurred a loss of Rs2,226.16 crore and Rs5,548 crore during the financial year 2007-08 and 2008-09 respectively. Air India is expected to incur a loss of Rs5,400 crore approximately during the year 2009-10,” minister of state (independent charge) for civil aviation Praful Patel said in the Rajya Sabha.
“The trend of losses is likely to continue for few more years,” Patel said, without specifying how long.
On the airline’s cost reduction and turnaround plans, the minister said it will be able to save only Rs753 crore in FY10, against Rs1,911 crore envisaged.
“The cost reduction/turnaround plan envisages benefits of Rs1,911 crore for FY 2009-10. However, Nacil (National Aviation Company of India Ltd) has implemented various initiatives which will only result in savings of Rs753 crore in FY 2009-10,” Patel said.
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First Published: Tue, Mar 09 2010. 03 41 PM IST