Riding high on the boom in the aviation sector, government-owned Air India made an operating profit of Rs 21.7 crore in November 2010, with over half of its flights recording cash profits. The airline had made a loss of Rs 150 crore in the same month in 2009.
In November, the overall passenger number grew by 25 per cent, compared with the corresponding month in 2009. However, AI, with 17.1 per cent of market share in passenger numbers, lost its third place to IndiGo.
Claiming it was a record in recent times, an AI statement said the cash profit of Rs 21.7 crore was largely possible due to significant improvement in efficiency parameters, coupled with better yield management strategies and a mushrooming number of passengers showing faith in the carrier.
“The peak season for air travel would continue and our employees’ commitment to meet the challenge is evident,” the statement quoted Chairman Arvind Jadhav.
During the month, the airline made profits in 108 of 194 flights on its network.
The carrier, with accumulated losses of over Rs 15,000 crore, has shown improved results in the current financial year. During April–November, it recorded a 22 per cent rise in revenue to Rs 7,250 crore, from Rs 5,911 crore during the same period of 2009-10.
AI recently got an equity infusion of Rs 1,200 crore, increasing its equity base to Rs 2,145 crore. It got Rs 800 crore last year. It wants another Rs 2,000 crore in the current financial year. This infusion will give the airline room to negotiate with oil companies and banks.
With a go-ahead from the Union cabinet, the airline has said it will start wage negotiations in the next financial year. At present, there are 10 wage agreements, with 14 employee unions. After the Mangalore air crash last May, two unions were derecognised, as they went on an ‘illegal’ flash strike.
