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Mumbai: The Group of Ministers which recently assured support to the national carrier in the form of equity infusion would be releasing the first installment of Rs 400 crore by January 2010. Further installments would be tied up to the mile stones of savings effected on account of cost cutting exercise adopted by national carrier Air India at various levels, says a press statement issued by National Aviation Company of India Ltd (Nacil) which owns flag carrier Air India on Tuesday.
“While the airline is doing everything possible to tide over the financial crunch, Nacil, like other airlines worldwide, is expected to continue witnessing a strained cash flow due to a weak economic and revenue environment. The yields continue to be low due to the excess capacity both in the domestic and international markets and consequent low pricing by all carriers,” said AI in a press statement.
National Aviation Company of India Limited (Nacil), in view of the improved passenger carriage in recent months, is trying to address the issues concerning the delayed payments of the productivity linked incentives (PLI) to its employees. The delay has ranged from one to two months in the past. Efforts are being made to settle the PLI payment payable in October 2009 shortly, so that the PLI arrears are cleared till date and that future PLI payments are not in arrears for more than a month. “Nacil is also putting in place a payment plan to clear the arrears to various vendors in the light of improved booking position for December 2009, January and February 2010, which are regarded as good months for the airline industry,” stated a press statement from the airline.
The improved market environment has enabled Nacil to notch up impressive gains in domestic market share, according to the data released by the DGCA. The airline’s domestic market share which was 16.6% in August’09 rose to 17.5% in September’09 and climbed to 18.6% in October’09.
The airline’s seat factor has also been showing improvement in the past three months. Seat factor has improved from 59.8% in August to 67.5% in September and 72.8% in October. Nacil flew a total of 7.7 lakh passengers on its domestic network during October’09, a gain of over 1.1 lakh compared to October’08. The enhanced carriage and higher load factor on account of improved on time performance and gradual deployment of more and...
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