Over Rs 5,840 loss for Indian airline industry in 2012-13:Govt

Written by PTI | New Delhi | Updated: Jul 23 2014, 00:35am hrs
The Indian airline industry suffered a total operating loss of over Rs 5,840 crore, including over Rs 3,159 crore of Air India, in 2012-13, Rajya Sabha was informed today.

However, the losses to Air India as well as the private carriers have shown a declining trend since 2009-10 till 2012-13.

IndiGo was the only airline to have reported profits during this period, barring 2011-12 when it made a loss of about Rs 88 crore, Minister of State for Civil Aviation G M Siddeshwara said in reply to questions.

Air India's operating loss was Rs 3,373 crore in 2009-10, Rs 4,087 crore in 2010-11, Rs 5,537 crore in 2011-12 and Rs 3,159 crore in 2012-13.

The private carriers -- Jet Airways, JetLite, SpiceJet, GoAir, IndiGo and now-defunct Kingfisher Airlines -- reported a total loss of Rs 3,733 crore in 2009-10, Rs 2,902 crore in 2010-11, shot up to Rs 7,272 crore in 2011-12 and again slided to Rs 2,682 crore in 2012-13.

Asked whether the entry of new airlines would put additional financial stress on the existing carriers' earnings, he said it was "too early" to asses the impact of new carriers joining the industry.

He said the government had taken corrective measures including allowing external commercial borrowings for working capital for a period of one year, with a total ceiling of USD one billion. It had also allowed investment by foreign airlines in Indian carriers.

While trying to persuade states to reduce value added tax on jet fuel, the Centre was also considering tax concessions for aircraft parts, testing equipment for MRO (maintenance, repair and overhaul) industry, he said.