AI likely to suffer loss of Rs 5k cr: Praful

New Delhi, Jul 14: Government on Tuesday, Jul 14 said in Rajya Sabha that Air India is expected to suffer a loss about Rs 5,000 crores in 2008-09 following operating losses, high oil prices and debt servicing on new aircraft.

Replying to a question, civil aviation minister Praful Patel said, "National Aviation Company India Ltd (NACIL) expects to register a loss of approximately Rs 5000 crores in 2008-09."

He also said, "The losses have been largely due to operating losses, which have been compounded due to the present economic recession as also the high oil prices last year and debt servicing on new aircraft."

The minister said Air India had taken up steps like integration and restructuring of network and schedules, fuel efficiency improvement measures and extended credit period for all vendors.

"Air India did not raise its fares in the recent past to remain competitive during the economic meltdown but was compelled to increase domestic fuel surcharge by Rs 400 in view of the increase in prices of ATF," Praful added

OneIndia News