This is significant in the light of the fact that during financial year 2002-03, Air-India recorded a net profit of approximately Rs 105 crore.
The factors attributed to the loss in this fiscal are cancellations and withdrawal of flights due to severe acute respiratory syndrome (SARS) resulting in drop of traffic during April-May, increase in price of aviation turbine fuel and overall recessionary trend in the international market.
This information was given by the civil aviation minister Rajiv Pratap Rudy in the Rajya Sabha on Tuesday.
Mr Rudy denied receiving any complaint of fishy twist to Air-India deal in its new purchase bids, saying that all decisions are taken in accordance with established procedures.
He cited the factors leading to net profit for the fiscal-ended March 2003 as: low finance/ interest cost primarily due to reduction in interest rate in the international markets; dividend of Rs 20 crore received from subsidiary company, Hotel Corporation of India, on account of profit on sale of properties; and profit of approximately Rs 17 crore on sale of three aircraft to Ariana Afghan Airlines through the ministry of external affairs.