Air India’s financial restructuring plan has given much more strength to India’s national carrier, both financially and operationally, and the airline has become an Indian multinational company...
Air India’s financial restructuring plan has given much more strength to India’s national carrier, both financially and operationally, and the airline has become an Indian multinational company, as it exports its services to 35 different countries and 1,359 different destinations, S Venkat, MD (finance) and joint-MD of Air India, said at an event organised by JRD Tata memorial Trust to commemorate the 111th birth anniversary of JRD Tata, the founder of Indian Airlines, in Mumbai on Saturday.
Air India, which has a total debt of around Rs 50, 000 crore, will be able to repay its entire aircraft-related debt which amounts to Rs 19,000 crore by 2019. As result of the fund infused by the government, the debt-to-equity ratio of Air India has been reduced to 2:1 from the previous 10:1.
“We are expecting to make an operational profit of around Rs 6 crore in the financial year 2015-16 and the management of the national carrier has taken a decision to induct 15 Airbus A320 aircraft on lease to improve the domestic operations,” Venkat told FE on the sidelines of the event.
Air india is also expected to induct six more Dreamliners in the year financial year 2017-18. The event was also attended by Go Air CEO Wolfgang Prock-Schauer and Airbus India MD Srinivasan Dwarkanath.
Go Air’s Prock-Schauer said the total passenger carried in 2015 is expected to be around 80 million, as against 70 million last year. “There are airports in places like Nashik, Pondicherry and Surat and we plan to increase our operations in those routes. We should have a predictable aviation policy and it should help everyone and promote growth,” added Prock-Schauer, during his speech at the event.