Air India losses for 2010-11estimated at Rs6,994 crore
02 December 2011
New Delhi: Air India has incurred an estimated loss of Rs6,994 crore for the year 2010-11, with only two of its 175 domestic and international flight routes meeting costs in the April-September period, the Government informed the upper house of the parliament.
Replying to questions about Air India in the Rajya Sabha, minister of civil aviation Vyalar Ravi, provided details of the national carrier's financial woes.
"Air India incurred a loss of Rs5548.26 crore during 2008-09, Rs5552.55 crore during 2009-10 and the estimated loss for 2010-11 is Rs6994 crore," Ravi informed the house.
In response to another query, Ravi conceded that just two routes out of 175 met all costs.
"Based on April-September, 2011 route wise profitability, two routes out of 175 services meet total cost viz Kolkata-Yangon (vice versa) and Kolkata-Kathmandu (and vice versa)," Ravi said.
"Based on April-September, 2011 out of 175 services, 8 services were not meeting fuel cost, 109 services meeting fuel cost but not meeting cash cost, 56 services meeting cash cost but not meeting total cost and two services meeting total cost," Ravi said.
He said that the reason for losses on a number of routes was increase in fuel cost and competition.