AI Doubles Loss | Government Assures Help | Equity Infusion

New Delhi, Dec 1: Far from showing signs of recovery, Air India has doubled its loss to Rs 5,000 crore, according to reports by the aviation minister Praful Patel.

Giving an estimate of the AI's loss, Patel said that the airlines incurred a loss of Rs 2,226.16 crore during 2007 to 2008.

He said that AI operator, National Aviation Co of India Ltd (NACIL) has undertaken several cost-centric proposals to enhance the company's performance.

Patel said that while the government has assured of financial assistance to the cash-strapped national carrier, the airlines has been asked to cut its cost by at least Rs 2,000 crore by the current fiscal end.

The proposal for restructuring AI by Committee of Secretaries will be pondered upon by the government in the days to come.

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AI is expected to receive it first instalment of Rs 400 crore by Jan 2010.

The airlines has undergone an unending series of losses since 2004 to 2005.

OneIndia News.

User Comments

kay kay 02 Dec 2009 02:47 am

I know one of the reasons of loss, my own experience with AI. Some years back I boarded an AI flight from Mumbai to Riyadh. The staff behaved like I am on their mercy. I paid for the travel, their salaries are at the customers travel. The Flight was a Overly old the wings of the flight were shaking I was at the window side. I was not sure that my flight will land or crash-land. If I pay the same fare to another carrier it would give my firstclass service with good flights. Which ensure my safe travel. Another thing all the air hostesses were like elephants and very old. They were required to please the customer, not to horrify. My friend booked a ticket and we arrived at the airport three hours before departure, the counter was not functional. After half an hour waiting at the lounge it says I don't have a boarding pass and my ticket transferred to someone else. WITH THIS BULLSHIT SERVICE. AI WILL NEVER BE AT PROFIT LINES FOR SURE...