Mumbai, April 29: Union minister for civil aviation Praful Patel on Wednesday said that Air India is expected to incur a loss of Rs5,400 crore during the 2009-10 fiscal.
Patel also indicated that 77% expenditure of the National Aviation Company of India Limited (NACIL) was on account of aircraft fuel, staff costs, interest on working capital borrowings and aircraft loan, maintenance of aircraft, landing, handling and navigational charges.
The matter was raised by Shiv Sena MP Bharatkumar Raut in the Rajya Sabha seeking to know whether Rs1,741 crore on account of fuel charges was due till January 2010 which has not been paid so far. He also wondered whether NACIL has devised any plan for cost reduction, revenue enhancement and focus on earning profits.
In a candid reply, Patel said: “The amount due to the three public sector unit oil companies as on April 20, 2010 was Rs1,203.75 crore. He said NACIL has submitted a turnaround plan to the government focussing on reduction of losses.
The plan mainly focuses on fleet rationalisation, rationalisation of routes and manpower, operationalisation of strategic business units and improving revenues.
—Agencies