AI shows surplus, hopes for turnaround
Air India on Wednesday reported a cash surplus of Rs 48 crore during April-July 2012, reducing the net losses of the financially-stressed airline.
The national carrier had a cash deficit of Rs 586 crore during the corresponding period in the previous fiscal.
‘For the first time since merger in 2007, Air India has made a cash surplus of Rs 48 crore during April-July 2012,’ civil aviation minister Ajit Singh said on the sidelines of the induction of the first Boeing 787 Dreamliner aircraft into the carrier’s fleet. ‘The net losses of Air India during the period April-July 2012 have been reduced by Rs 557 crore,’ Singh said.
According to the minister, the airline’s expenditure was reduced by 4.4 per cent in the period under review which stood at Rs 268 crore from like period of 2011.
He said despite a recent pilots strike that had caused a 17 per cent reduction in capacity, Air India has posted an increase of 6.5 per cent in revenue for the period of April-August 2012.
‘The revenue on the domestic network increased by 33 per cent during the period April to August, 2012 representing an increase of Rs.531 crore.’
Singh further said that Rs 2,900 crore had been given to the national airline under the Rs 4,000 crore budgetary allocation made for 2012-13.