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New Delhi, March 9
Air India is expected to post a loss of about Rs 5,400 crore during 2009-10, the Minister for Civil Aviation, Mr Praful Patel, informed the Rajya Sabha, on Tuesday. In a written reply, the Minister said that the airline had incurred a loss of Rs 2,226.16 crore in the financial year 2007-08, a figure which rose to Rs 5,548 crore during the next financial year. He added that the trend of the airline making losses is likely to continue for a few more years. The airlines' total outgo on lease rental payments for 2007-08 was Rs 717.20 crore which rose to Rs 811 crore the following year and was estimated at Rs 759.25 crore till February this year, Mr Patel added. The Minister also outlined the various cost-cutting initiatives initiated by the airline to improve its financial position, including fleet rationalising, manpower rationalisation and structural changes. The cost reduction and turnaround plan envisages benefits of Rs 1,911 crore during the financial year 2009-10, although the saving during the year was Rs 753 crore, he said. – Our Bureau