Thursday, August 23, 2012

NEWS| Air India's losses pegged at 28,046 crore


AI's losses have been constantly mounting since the five-year-old merger with Indian Airlines and the collective losses from 2007-08 to 2011-12 are now Rs 28,046 crore, the aviation ministry told Parliament on Tuesday.

While the government is pumping thousands of crores into AI to revive it, the operational reality check is not good. Aviation minister Ajit Singh told Rajya Sabha that only 16 of AI's 184 routes in the April-June 2012 period met their total costs. Nine services did not even meet their fuel costs. "A task force headed by a joint secretary of the ministry has been constituted to examine route economics and to find ways and means to rationalize the routes so as to make the operations more cost effective," Singh said. He listed a number of steps being taken to reduce costs and improve performance like dismantling of the Frankfurt hub and making Delhi the new hub.

SOURCEhttp://timesofindia.indiatimes.com/business/india-business/Indian-Airlines-losses-pegged-at-28046-crore/articleshow/15594341.cms


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