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.

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Well Wisher
 - 
Monday, 16 Sep 2019

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

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News Network
April 25,2020

Chennai, Apr 25: Civic authorities on Saturday turned down a plea for exhuming the body of a doctor who died of COVID-19 here and burying it in another cemetery, citing health experts' view that it was unsafe to do so. Citing a request from the wife of the deceased doctor to allow exhumation and then re-burial at a cemetery in Kilpauk, the Greater Chennai Corporation said it sought a report from a committee of public health experts to ascertain the feasibility of entertaining her plea.

The spouse of the doctor had appealed to the GCC on April 22 to exhume and bury again her husband's body. She had said that burial in the Kilpauk cemetery here was her husband's last wish and he had conveyed it to her before he was put on a ventilator.

The report of experts has said that "it is not safe" to exhume and again bury the body of a COVID-19 victim and hence "it is not possible to accept her request," the GCC said in an official release. On April 19, a city-based 55-year-old neurosurgeon died of coronavirus and his burial at the Velangadu crematorium here was marred by violence.

A mob which falsely feared that the burial may lead to the spread of contagion had attacked the corporation health employees and associates of the deceased doctor. The doctor's wife and son also had to leave the burial ground in view of the violence.

The body was brought to Velangadu as people of Kilpauk area had opposed his burial there. Over a dozen men involved allegedly in violence were arrested and remanded to judicial custody. Later, in a video message, the surgeon's wife had said that it was her husband's last wish to be interred at the Kilpauk cemetery as per Christian rituals

Chief Minister K Palaniswami and DMK president M K Stalin had spoken to her on Wednesday over the phone and condoled her husband's death.

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News Network
April 22,2020

New Delhi, Apr 22: Prime Minister Narendra Modi on Wednesday said that The Epidemic Diseases (Amendment) Ordinance, 2020, manifests his government's commitment to protecting healthcare workers braving COVID-19 on the frontline.
"The Epidemic Diseases (Amendment) Ordinance, 2020, manifests our commitment to protect each and every healthcare worker, who is bravely battling COVID-19 on the frontline. It will ensure the safety of our professionals. There can be no compromise on their safety!," Prime Minister Modi tweeted.
The Central government on Wednesday brought an ordinance to end the violence against health workers, making it a cognizable, non-bailable offence with the imprisonment of up to seven years for those found guilty.

"We have brought an ordinance under which any attack on health workers will be a cognizable, non-bailable offence. In the case of grievous injuries, the accused can be sentenced from 6 months to 7 years. They can be penalised from Rs 1 lakh to Rs 5 lakh," Union Minister Prakash Javadekar briefed media after the meeting of the Cabinet.

"Such crime will now be cognisable and non-bailable. An investigation will be done within 30 days. Accused can be sentenced from three months to five years, and penalised from Rs 50,000 up to Rs 2 lakh," said Javadekar.

Moreover, if the damage is done to vehicles or clinics of healthcare workers, then a compensation amounting to twice the market value of the damaged property will be taken from the accused, said Javadekar.

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News Network
March 13,2020

Mumbai, Mar 13:  Investor wealth worth nearly Rs 12 lakh crore was wiped out in less than 15 minutes of trading on the stock exchanges on Friday, with the two benchmarks, the BSE Sensex and the NSE Nifty, crashing over 10 per cent.

The 30-share BSE Sensex plummeted 3,380.59 points, or 10.31 per cent, to 29,397.55. It hit an intra-day low of 29,388.97, falling up to 3,389.17 points.

Trading was halted for 45 minutes in the early session after the index hit its lower circuit limit.

The BSE and NSE benchmark indices, however, pared most losses with the Sensex trading 835.40 points, or 2.55 per cent, lower at 31,942.74, and the Nifty was down 253.25 points or 2.64 per cent at 9,336.90 at 10.40 am.

The mayhem on Dalal Street eroded investor wealth worth Rs 12,92,479.88 crore, taking the total m-cap to Rs 1,12,78,172.75 crore on the BSE at 1020 hours.

The m-cap of BSE-listed companies stood at Rs 1,25,70,652.63 crore at the end of trading on Thursday.

Traders said besides global selloff, incessant foreign fund outflows also weighed on investor sentiments.

On a net basis, foreign institutional investors sold equities worth Rs 3,475.29 crore on Thursday, data available with stock exchanges showed.

On the BSE, 1,279 scrips declined, while 193 advanced and 40 remained unchanged.

Volatility heightened in global markets as benchmarks world over went into panic mode, insinuating a freakish selloff.

Bourses in Shanghai dropped over 3.32 per cent, Hong Kong 5.61 per cent, Seoul 7.58 per cent and Tokyo cracked up to 7.97 per cent.

Wall Street lost 10 per cent in overnight trade.

More than 1,30,000 cases of the novel coronavirus have been recorded in 116 countries and territories, killing at least 4,900 people.

The number of coronavirus patients in India has risen to 74, as per the health ministry.

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