Air India likely to report ₹300 crore operating profit, says Jayant Sinha1 min read . Updated: 28 Mar 2017, 04:30 PM IST
Civil Aviation minister Jayant Sinha said that there is no proposal to either disinvest or privatise Air India
New Delhi: Air India is projected to post an operating profit of ₹ 300 crore in the current fiscal and there is no plan to privatise the airline, the government said on Tuesday.
“The operating losses of the company have been steadily coming down over the past few years and the same have converted into operating profits," minister of state for civil aviation Jayant Sinha said. In a written reply, he also said the carrier’s net losses are also reducing gradually on account of the overall improvements in the “operational and financial performance".
As per provisional figures for 2016-17, the airline is projected to see an operating profit of ₹ 300 crore and net loss after tax of ₹ 3,643 crore.
Last fiscal, Air India had an operating profit of ₹ 105 crore and a net loss after tax of ₹ 3,836.77 crore. On whether there is any proposal to either disinvest or privatise Air India, the minister replied in the negative. In a separate written reply, Sinha said various steps are being taken to improve the airline’s revenues.
These include introduction of new routes, flash sale of seats, dynamic pricing and introduction of advance purchase fare.
The government’s turnaround plan (TAP) or financial restructuring plan (FRP) provides for equity infusion worth Rs30,231 crore in the airline up to 2021 subject to achieving certain milestones.
To another query, Sinha said that as per records, no request for ‘no objection certificate’ has been received from pilots of B-787 Dreamliner to quit Air India.