India's Civil Aviation Minister Vayalar Ravi stated Air India is incurring monthly losses of INR6 billion (USD134 million) (PTI/The Hindu/Financial Express, 04-Aug-2011). The carrier's monthly incomes stands at around INR11 billion (USD247 million), outpaced by expenses of INR17 billion (USD382 million). "There are several factors which are causing losses to Air India ... abnormal increase in aviation fuel prices ... competition from budget and other airlines ... increase in wages and overheads," he said during Question Hour in Rajya Sabha, the Parliament of India. He added that the carrier is also incurring interest on working capital and procurement of aircrafts. Mr Ravi said the Group of Ministers, which has met several times, would submit its recommendation on turnaround and financial restructuring of the carrier soon and, accordingly, the government would take steps. The Minister also said that Air India has taken a series of measures to reduce costs. "These include rationalisation of certain loss-making routes, return of leased aircraft, phasing out of old fleet, reduction in contractual employment and outsourced agencies, fuel savings through critical analysis of fuel consumption, optimisation of aircraft utilisation, closure of foreign stations and offline offices," he said.
5-Aug-2011 10:36 AM