Millennium Post

Air India steps up bid to become profitable venture

Air India steps up bid to  become profitable venture
Minister of State for Civil Aviation Mahesh Sharma, in a written reply in Rajya Sabha, said joining of Air India to the club of global airlines ‘Star Alliance’ would give the national carrier leverage to get good seat factor, was also a step towards becoming profitable.

Other measures include launching of promotional and competitive fares as well as enhancing facilities for passengers such as web check-in option and flight tracking system, he said. Sharma, however, did not share the total number of profit or loss making routes of Air India.

“Since the route profitability or loss on various sector is confidential and will harm the commercial interest of the company, information regarding profit or loss of domestic and international flights of Air India can’t be revealed.”

The Minister said Air India, however, analyses the reasons for losses and based on the strategic importance of the routes takes a call on whether to operate those routes or not.

“While determining the desirability or otherwise of discontinuing services of loss-making services, Air India takes into account the revenue contribution made by the subject services to other services by way of feeder traffic,” he added.

DIAL exits cargo services; sells stake

Delhi International Airport Ltd (DIAL), a subsidiary of GMR Infrastructure, has exited from cargo services at the Delhi airport by selling its entire stake to India Infrastructure Fund for Rs 29 crore.

“Accordingly as per the terms of definitive agreement and on completion of condition precedents, DIAL on March 16, 2015 has sold and transferred its entire holding of 1,09,20,000 equity shares of face value of Rs 10 each, to India Infrastructure Fund-II for Rs 26.20 per share and has received the total consideration of Rs 28.60 crore,” GMR Infra said.

Last month DIAL had entered into a definitive agreement to sell its entire stake of 26 per cent of the equity capital of Delhi Cargo Service Centre Pvt. Ltd.
PTI

PTI

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