2 min read.Updated: 14 Oct 2021, 09:08 PM ISTRhik Kundu
The losses of the carrier declined during 2020-21 as compared to the previous year as the airline's expenses reduced to ₹19,083.33 crore in 2020-21 from ₹36,290.17 crore in 2019-20 with the carrier's operations remaining limited during the pandemic
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NEW DELHI :
Divestment-bound Air India Ltd has recorded a huge loss during 2020-21 amid strict travel curbs and border lockdowns due to the covid-19 pandemic.
The standalone net loss of Air India Limited stood at ₹7,017.42 crore in the year through 31 March 2021, down from a ₹7,765.73 crore loss recorded in the previous year, according to a statement submitted by the airline to the BSE, after the airline's board meeting on Thursday.
The losses of the carrier declined during 2020-21 as compared to the previous year as the airline's expenses reduced to ₹19,083.33 crore in 2020-21 from ₹36,290.17 crore in 2019-20 with the carrier's operations remaining limited during the pandemic.
"The global outbreak of covid-19 and the nationwide lockdown imposed from 25 March 2020 and followed by multiple extensions in lockdown/restrictions imposed by central/state governments had a major impact on the aviation industry," Air India said in the statement.
"The suspension of all air traffic during this period saw the revenues of the company plummeting..," it added.
Air India Limited's standalone revenue for 2020-21 stood at ₹12,104.05 crore, down from ₹28,524.44 crore during the previous year.
Mint had in February reported that Air India is likely to incur a consolidated net loss of ₹9,500-10,000 crore in the year through March, up from a ₹8,000 crore loss recorded in the previous year, quoting a senior official at Air India. This would include losses reported by Air India and its subsidiaries.
The carrier has never made a net profit since its merger with Indian Airlines in 2007. It posted net losses of ₹8,556.35 crore in 2018-19, and ₹5,348.18 crore in 2017-18.
Meanwhile, India’s largest conglomerate Tata Group was last week named the winning bidder for Air India, ahead of a consortium-led by SpiceJet Ltd chairman and managing director Ajay Singh.
The government has issued a letter of intent (LoI) to the Tata group, the winning bidder for national carrier Air India, and hopes to sign a share purchase agreement (SPA) with India’s largest conglomerate soon, Tuhin Kanta Pandey, secretary of the finance ministry’s department of investment and public asset management (Dipam), said on 11 October.
Upon the completion of the transaction, which the government hopes to conclude by December end, the Tata group will be given full control of Air India and its low-cost unit Air India Express, as well as a 50% stake in ground handling company Air India SATS Airport Services Pvt. Ltd (AISATS).
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