Air India posts Rs 4,600 cr operating loss in 2018-19; aims profit this fiscal

Agencies
September 16, 2019

New Delhi, Sept 16: Air India posted an operating loss of around Rs 4,600 crore in the last financial year mainly due to higher oil prices and foreign exchange losses but the debt-laden carrier expects to turn operationally profitable in 2019-20, according to senior officials.

Reflecting tough business conditions, the airline's net loss stood at about Rs 8,400 crore while total revenues touched around Rs 26,400 crore in 2018-19, one of the senior officials told news agency.

Another senior official said the airline is projected to post an operating profit of Rs 700 to 800 crore in 2019-20, provided oil prices do not shoot up significantly and there is no steep fluctuation in foreign exchange rates.

However, the airline incurred an operating loss of Rs 175 to 200 crore in the three months ended June as closure of Pakistan airspace for Indian carriers resulted in higher costs and caused a daily loss of Rs 3 to 4 crore when the restrictions were in place, the official said.

Air India had a loss of Rs 430 crore in the four-month period when Pakistan closed its airspace after the Balakot air strikes.

The official noted that load factor and yields are improving for Air India, which currently flies to 41 international and 72 domestic destinations. Load factor is a measure of seat occupancy and yield refers to average fare paid per passenger.

The situation is anticipated to improve further as more wide-body planes would be available for operations in the coming months, the official added. Air India had grounded several of its wide-body aircraft for maintenance and most of them are in the process of being re-inducted into the fleet.

Air India is to start flying to Toronto from September 27 and to Nairobi in November.

The airline has a debt burden of more than Rs 58,000 crore and servicing the loans is a major challenge as the annual outgo is more than Rs 4,000 crore.

The official who was quoted first said the carrier is facing a financial crisis and disinvestment is the option.

Aviation consultancy CAPA South Asia CEO and Director Kapil Kaul said Air India's financial position is likely to "significantly improve" in the current financial year.

"CAPA expects a closer to break-even in FY 20 excluding increased costs incurred due to closure of Pakistan airspace. With oil prices expected to stay below USD 60, expect a closer to break-even for Air India in FY 20, he told news agency.

Noting that improved financial performance would be a positive for divestment, Kaul said a fully divested Air India that is well capitalised and with improved governance and management would ensure that the airline has a relevant future.

India needs a stronger Air India which is viable without taxpayers' support, he added.

The government has decided on disinvestment of Air India as part of efforts to revive its fortunes. Air India, which has been in the red for long, was sanctioned a nearly Rs 30,000 crore bailout package for a 10-year period by the UPA regime in 2012.

Comments

Well Wisher
 - 
Monday, 16 Sep 2019

Be careful passensgers, especially Gulf passengers, chances of mid-air fuel run-out is more. LOL

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 25,2020

Domestic flights resumed operations on a truncated schedule on Monday with the first aircraft departing from the Delhi Airport for Pune, more than two months after a nationwide lockdown was announced to combat COVID-19.

The first flight to take off was an IndiGo aircraft to Pune, flying passengers stranded in the national capital since the lockdown was announced on March 24.

Passengers were screened at the airport with electronic thermometers, and revised protocol for air travel that included santisation of luggage through ultra-violent scanners, and maintaining physical distancing.

Only asymptomatic passengers were allowed to enter the airport.

Passengers were also seen wearing face masks and face shields given to them at the embarkation point by the airline to minimise the chances of infection while onboard.

The first flight arrived at Delhi Airport from Ahmedabad – a SpiceJet aircraft – at around 8:00 am.

BJD Lok Sabha member Anubhav Mohanty was among those who took the Air Vistara flight to Bhubaneshwar that departed Delhi airport at 6:50 am.

The first flight to take off from Mumbai was an IndiGo aircraft that departed for Patna at 6:45 am, while passengers from Lucknow were the first to reach the financial capital on an IndiGo aircraft that touched down at 8:20 am.

The food & beverage and retail outlets, which were closed for the past 63 days, opened at Terminal 3 of Delhi’s Indira Gandhi International (IGI) Airport.

The flight services resumed after a day of long and hard negotiations between the Centre and the states on Sunday.

All states finally agreed to accept at least some flights but announced different quarantine and self-isolation rules for arriving passengers to address apprehension about infections being brought in from other cities.

The Centre had issued guidelines for all modes of domestic travel that advised all asymptomatic passengers to self-monitor their health parameters for 14 days on completion of the journey and report to health authorities if they displayed any symptoms for COVID-19.

However, the Centre had allowed state governments to prescribe their own health protocols for disembarking passengers which led to differential guidelines across the country.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
January 18,2020

Kanpur, Jan 18: Kanpur has witnessed an Unnao-like incident as the out on bail accused in rape case attack the family members of the victim. The mother of the victim, who later died in the hospital, was brutally attacked by the accused. The accused reportedly attacked the victim's mother and her aunt on January 8.

The actual rape case goes back to 2018 when a group of men abducted a minor girl from her own society. The accused had reportedly raped her and also beaten up her mother.

A video of mother being beaten up reportedly went viral soon after.

The mother of the victim had reportedly filed a complaint against one of the accused for abducting and molesting her daughter two years ago at a tannery falling under jurisdiction of Chakeri police station. The main accused along with five others was booked under section 354 of the IPC (sexual assault of children) and sent to jail. Around two weeks ago, the accused got bail and on January 9 they attacked the deceased and her sister.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Agencies
May 21,2020

More than 50 million people in India do not have access to effective handwashing, putting them at a greater risk of acquiring and transmitting the novel coronavirus, according to a study.

Researchers from the Institute for Health Metrics and Evaluation (IHME) at the University of Washington in the US found that without access to soap and clean water, over 2 billion people in low- and middle-income nations -- a quarter of the world's population -- have a greater likelihood of transmitting the coronavirus than those in wealthy countries.

According to the study, published in the journal Environmental Health Perspectives, more than 50 per cent of the people in sub-Saharan Africa and Oceania lacked access to effective handwashing.

"Handwashing is one of the key measures to prevent COVID transmission, yet it is distressing that access is unavailable in many countries that also have limited health care capacity," said Michael Brauer, a professor at IHME.

The study found that in 46 countries, more than half of people lacked access to soap and clean water.

In India, Pakistan, China, Bangladesh, Nigeria, Ethiopia, Democratic Republic of the Congo, and Indonesia, more than 50 million persons in each country were estimated to be without handwashing access, according to the study.

"Temporary fixes, such as hand sanitizer or water trucks, are just that -- temporary fixes," Brauer said.

"But implementing long-term solutions is needed to protect against COVID and the more than 700,000 deaths each year due to poor handwashing access," Brauer said.

He noted that even with 25 per cent of the world's population lacking access to effective handwashing facilities, there have been "substantial improvements in many countries" between 1990 and 2019.

Those countries include Saudi Arabia, Morocco, Nepal, and Tanzania, which have improved their nations' sanitation, the researchers said.

The study does not estimate access to handwashing facilities in non-household settings such as schools, workplaces, health care facilities, and other public locations such as markets.

Earlier this month, the World Health Organization predicted 190,000 people in Africa could die of COVID-19 in the first year of the pandemic, and that upward of 44 million of the continent's 1.3 billion people could be infected with the coronavirus, the researchers said. 

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.