Ia Sees Return To Profits In '97

It will be zero loss for Indian Airlines in March 1997 and it will record a net profit next year, according to civil aviation minister C M Ibrahim here.

Ibrahim was talking to reporters at the conclusion of the second meeting in three months to review the functioning of the state-owned domestic air carrier.

Indian Airlines had reduced the net loss from Rs 188.73 crore to Rs 110 crore and further to Rs 54.50 crore during 1994-95, 1995-96 and 1996-97, respectively.

The operating profit of the airlines during this period had increased from Rs 36.24 crore to Rs 156.51 crore and further to Rs 192 crore.

The increase in seat capacity and daily flying hours will be effective from winter schedule starting November 1.

While the seats will go up from 31,000 to 35,700 per day, the daily flying hours will increase from 330 to 375 per day.

Ibrahim said four companies including the state-owned Hindustan Aeronautics Limited (HAL) have been shortlisted with which Indian Airlines will have a joint venture for engine overhaul.

The other companies are Pratt and Whitney of the US, Rolls Royce of UK and Sochata of France.

The joint venture project involves upgradation of the jet engine overhaul complex in Delhi.

The airline is making an evaluation to decide the nature, quantum and extent of joint ventures including equity participation.

An airlines note circulated at the new conference mentioned that the 16.3 per cent domestic air fare hike was necessitated due to increase in input costs of operations in 1996-97 of Rs 219 crore and an uncovered gap of Rs 62 crore in the previous fare increase in 1995-96.