JOIN USAir India is expecting some cheerful news in the coming days with the government on Tuesday saying that the national carrier is likely to post a ‘modest operating profit’ in 2015-16 after a string of loss making years.
Minister of State for Civil Aviation Mahesh Sharma said the operating losses of Air India have consistently reduced and in 2014-15, it was Rs 2,639.19 crore against Rs 5,138.69 crore in 2011-12.
“For the first time since the merger of Air India and Indian airlines in 2007-08, Air India is expected to earn a modest operating profit during 2015-16,” Sharma said in a written reply in the Rajya Sabha.
Air India, which is implementing a turnaround plan has been witnessing decline in operating loss in the past few years. The government has promised an equity infusion of Rs 30,231 crore up to 2021 subject to achieving certain milestones as laid out in the plan. Sharma said Air India has turned EBIDTA (Earnings Before Interest, Taxes, Depreciation and Amortization) positive by Rs 337.77 crore in 2014-15 in comparison to an EBIDTA negative of Rs 2,236.95 crore in 2011-12.
He also answered in the negative when asked whether the government is planning to constitute a committee to look into the possibility of disinvesting 49% stake in Air India.
Sharma also said Air India shelled out Rs 18.46 crore towards advertisement and publicity in 2014-15 fiscal. During the same period, the expenditure on passenger amenities stood at Rs 722.54 crore.