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Disinvestment-bound Air India records 11% revenue growth in FY18: CMD

In 2016-17, the airline raked in total revenue of Rs 221 billion compared to Rs 206 billion in the same period a year ago, as per the annual report

Press Trust of India  |  New Delhi 

Air India

Disinvestment-bound registered around 11 per cent growth in revenue, as the airline's fiscal and performance parameters were good in the last financial year, according to its chief

The loss-making national carrier also recorded 80 per cent passenger load factor in 2017-18 amid the government preparing for its strategic

Kharola on Tuesday said the performance parameters of the airline had been good in the last financial year. The load factor was around 80 per cent and growth was in the range of 11 per cent, he added.

"... the financials are being firmed up but fiscal parameters have been good (in 2017-18)," the Chairman and Managing Director said.

In 2016-17, the airline raked in total of Rs 221 billion compared to Rs 206 billion in the same period a year ago, as per the annual report.

About the carrier's On-Time Performance (OTP) in the last fiscal, Kharola said there has been a "marked improvement" on an year-on-year basis.

He was speaking to reporters on the sidelines of a conference here.

On March 28, the government came out with the preliminary information memorandum for the strategic of Air India, wherein it plans to offload 76 per cent as well as cede management control to private players.

In February, the civil aviation ministry said has been "consistently improving" its overall performance and more than doubled its operating profit to Rs 2.98 billion in 2016-17.

During the same period, the airline's net loss widened to Rs 57.65 billion. In 2015-16, had an operating profit of Rs 1.05 billion while net loss stood at Rs 38.36 billion.

"Air India has been consistently improving its overall financial and operational performance since the implementation of the turnaround plan by the government," Minister of State for Civil Aviation had told the on February 8.

The previous government, in 2012, had approved a turnaround plan under which Air India is to receive a total equity infusion worth Rs 302 billion up to 2021 subject to meeting certain performance thresholds.

As part of the turnaround plan, Air India has been taking various measures, including rationalisation of routes and enhanced utilisation of aircraft.

According to the preliminary information memorandum, issued on March 28, the government will retain 24 per cent stake in Air India and the winning bidder would be required to stay invested in the airline for at least three years.

The proposed would include profit-making Air India Express and joint venture AISATS. The latter is an equal joint venture between the national carrier and Singapore-based SATS Ltd.

First Published: Thu, April 12 2018. 16:16 IST