Air India's loss may widen to Rs 6,994 cr in 2010-11

Air India is estimated to haveincurred a loss of Rs 6,994 crore in the year 2010-11 and only two of its 175domestic and international flight routes were meeting all costs during theApril-September period, the government said on Thursday.

 

Replying to several questions about Air India in the RajyaSabha, Minister of Civil Aviation Vyalar Ravi gave details of the nationalcarrier's financial woes.

"Air India incurred a loss of Rs 5,548.26 crore during2008-09, Rs 5,552.55 crore during 2009-10 and the estimated loss for 2010-11 isRs 6,994 crore," Ravi said in reply to a question by Y S Chowdhury.

MPs Prabhat Jha and Kusum Rai asked the Civil AviationMinister whether of the 175 routes that Air India operated, only two met alltheir costs.

"Based on April-September, 2011 route wiseprofitability, two routes out of 175 services meet total cost vizKolkata-Yangon (vice versa) and Kolkata-Kathmandu (and vice versa)," Ravisaid.

"Based on April-September, 2011 out of 175 services, 8services not meeting fuel cost, 109 services meeting fuel cost but not meetingcash cost, 56 services meeting cash cost but not meeting total cost and twoservices meeting total cost," Ravi said.

He said that the reason for losses on a number of routes wasincrease in fuel cost and competition.