New Delhi: Air India will report an operating profit in the current fiscal, primarily benefiting from low crude prices and improved operational efficiency, the government said on November 6. The loss-making national carrier, surviving on a Rs 30,000 crore bailout package, is implementing a turnaround plan.
"Air India is going to report operating profit in this financial year (ending March 31, 2016) and is expected to be Rs 6 crore," said Civil Aviation Secretary R N Choubey.
The airline is benefiting from fall in crude oil prices and improved operational efficiency, he added. According to him, better on-time performance and increased availability of passenger aircraft have helped in improving operational efficiency.
The airline is saddled with a debt of about Rs 40,000 crore that includes a long-term loan taken for aircraft purchase and working capital loan. It has accumulated a loss of close to Rs 30,000 crore. It reported losses to the tune of Rs 5,389 crore and Rs 5,490 crore respectively in the fiscal 2013-14 and 2012-13 respectively.
Air India is surviving on a Rs 30,000-crore bailout package extended by the previous UPA government in 2012.
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