Air India may account for half of domestic aviation industry's total losses: Patel
04 Oct 2008
Mumbai: Indian flag carrier Air India is expected to account for half of the domestic aviation industry's losses this fiscal, civil aviation minister Praful Patel said Friday. "Air India's losses would be around Rs3,000 crore in FY 2008-09," he said.
High oil prices through the best part of the year will see the aviation industry posting losses of Rs6,000 crore for the current fiscal.
Speaking to the media, Patel said that high oil prices were not India-centric and that airlines across the globe had come under pressure.
He also said that the Centre was planning a capital infusion of Rs1,500 crore to support the public sector carrier. "We are examining the proposal," Patel said.
He also ruled out the possibility of an initial public offer (IPO) for the carrier given the prevailing market conditions. "No one will go for an IPO in the present market," the minister said.
Currently, government equity in the loss-making national carrier is a paltry Rs150 crore.
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