National airline's profit flew to `300 cr in 2016-17
Air India's net loss after tax narrowed to Rs 3,643 crore and operating profit rose to Rs 300 crore in the last financial year, the government said on Tuesday.
The airline saw its total revenue, including exceptional and extraordinary items, increase to Rs 22,146 crore in 2016 -17 period, as per provisional numbers provided by Minister of State for Civil Aviation Jayant Sinha to the Rajya Sabha.
The financial position seems to have improved for the airline as it had posted a net loss after tax of Rs 3,836.77 crore and an operating profit of Rs 105 crore in 2015-16 fiscal. However, the airline's expenditure went up to Rs 25,789 crore in the last financial year, as per the provisional numbers. In 2015-16, the same was lower at Rs 24,361.33 crore.
Sinha on Tuesday responded to various queries related to the airline by way of written replies to the Rajya Sabha.Citing provisional figures, Sinha said Air India's total debt stood at Rs 48,876.81 crore at the end of March 2017.
"Air India is facing financial pressure and earning less profit due to high debt burden as an offshoot of past accumulated losses. The debt servicing is at around Rs 6,000 crore per annum," the minister said.
To a query on whether Air India is facing financial pressure due to laxity in operation and management of the airline, Sinha replied in the negative.
"To implement the decision of the CCEA, appointment of transaction adviser, legal adviser and asset valuer shall be taken up as per terms and conditions and scope of work of advisers/ valuer in accordance with the model RFPs (Request for Proposals) suggested by the Department of Investment and Public Asset Management," Sinha said