Air India: Air India operating profit more than doubles to Rs 298 crore in FY17
NEW DELHI: Air India has been “persistently enhancing” its total efficiency and greater than doubled its working revenue to Rs 298.03 crore within the final monetary yr, in accordance with the federal government.
The online lack of the state-owned airline nevertheless widened to Rs 5,765.16 crore in 2016-17. The divestment-bound nationwide service had an working revenue of Rs 105 crore in 2015-16.
“Air India has been persistently enhancing its total monetary and operational efficiency because the implementation of the turnaround plan by the federal government,” Minister of State for Civil Aviation Jayant Sinha stated in a written reply to the Lok Sabha right this moment.
In 2015-16, Air India had an working revenue of Rs 105 crore whereas web loss stood at Rs three,836.77 crore.
The earlier UPA authorities, in 2012, had authorised a turnaround plan underneath which Air India is to obtain a complete fairness infusion value Rs 30,231 crore as much as 2021 topic to assembly sure efficiency thresholds.
Out of the entire quantity, Rs 26,545.21 crore has already been infused into the airline until now. As a part of the turnaround plan, Air India has been taking varied measures, together with rationalisation of routes and enhanced utilisation of plane.
The airline’s complete loans amounted to Rs 48,447.37 crore in 2016-17. This contains plane and dealing capital loans of Rs 17,359.61 crore and Rs 31,087.76 crore, respectively.
Sinha stated the draft expression of curiosity doc inviting proposal for the airline’s disinvestment is but to be finalised by the Air India Particular Various Mechanism (AISAM).
“Formal proposals from potential bidders can be obtained thereafter solely. Any unsolicited expressions of curiosity at this stage will not be related,” he stated.
In June 2016, the Cupboard Committee on Financial Affairs (CCEA) had given its in-principle approval for contemplating strategic disinvestment of Air India and its 5 subsidiaries. It additionally constituted the AISAM, which is headed by Finance Minister Arun Jaitley.
The panel would resolve on hiving off sure property to a shell firm, the entities to be provided on the market throughout the bidding course of, the quantum of disinvestment and the universe of bidders, Sinha stated in a separate reply.
To a different reply, he stated the Air India Museum undertaking has been placed on maintain as a result of ongoing disinvestment course of.
There was a proposal to arrange a museum of arts and crafts in Mumbai to showcase the gathering of Air India.