Air India targets an operating profit, sees 7.75% growth in FY16 revenue

National flag carrier Air India is targeting an operating profit of Rs6.20 crore as per the budget estimates of financial year 2015-16, on the back of falling oil prices, its first in several years.

The airline is expected to post an operating revenue of Rs21,066.00 crore and operating expenses of Rs21,059.80 crore, thereby allowing for a profit of Rs6.20 crore.

The airline is also targeting passenger revenue of Rs17,017 crore as per the budget estimates for the financial year 2015-16 compared to passenger revenue of Rs15,793.36 crore achieved in financial year 2014-15, an increase of 7.75 per cent.

To keep revenues growing, Air India has taken various steps, including improvements in the current seat occupancy in the first class and business class:

Besides, the airline is offering attractive fares in the first class and business class, besides introduction of an e-Super Saver Scheme for business class for online bookings.

Air India is upgrading passengers from Economy to Executive Class and Executive to First Class with the 'Get Upfront Offer' at the airport at nominal charge, to prevent last minute seat spoilage.

Air India is also incentivizing travel agents with short term cut and pay incentive scheme for first and business class.

Giving this information in a written reply in the Lok Sabha on Thursday, minister of state for civil aviation Mahesh Sharma also said Air India Charters Limited has contracted for the lease of six B-737-800 NG aircraft for delivery between March and November 2016.

Air India Express has already undertaken recruitment exercise to recruit cabin crew for its enhanced fleet and 150 candidates have been shortlisted for appointment on fixed term contract basis, as airline attendants, he said.