Air India losses climb to Rs5,548 crore

New Delhi: Flag carrier Air India has doubled its losses in 2008-09 over the previous year - to Rs5,548.26 crore from Rs2,200 crore. It made this announcement after annual accounts for 2008-09 were approved by the airline board at Chennai on Wednesday.

The airline said its revenue declined by 11.6 per cent to Rs13,479 crore in 2008-09, from Rs15,252 crore the previous year, mainly on account of global recession, and fall in load factors and passenger yields.

At 10.36 million, the carrier reported a 21.5 per cent decline in passengers carried compared to 13.21 million flown in 2007-08.

Other factors contributing to the losses included an increase in depreciation costs due to induction of aircraft, increase in interest on aircraft loans and borrowing and loss on foreign exchange due to a depreciating rupee, the airline said in a statement.

During the year the carrier inducted more than a dozen planes into its fleet, including seven Airbus 320 and three Boeing 737-800. It has 111 new aircraft on order, at an estimated value of Rs40,000 crore.

The statement said the carrier also planned to reduce leased aircraft in its fleet, rationalise wages and phase out older variety of aircraft in a bid to improve operational performance in 2009-10.

The board meet takes place just a day before the Group of Ministers meets to decide on a financial package for the airlines. The management is expected to submit a restructuring plan which will attempt to reduce mounting losses and increase operational efficiency of the carrier.