Air India’s revenue to go up 9 per cent at Rs 22, 521 crore this fiscal: Govt

By: | Published: March 10, 2017 3:43 AM

From November, 2015, in addition to Riyadh route, the Boeing 777 aircraft was deployed on the Delhi to London route and from December the same aircraft started to operate on the Bangalore - Delhi-San Francisco route which has helped in increasing the utilization of Boeing 777s over 14 hours per day from November onward compared to just 8 hours before.

Air IndiaAir India is expected to increase its revenue by 9% at the end of the current financial year to R22,521 crore, minister of state for civil aviation Jayant Sinha told Lok Sabha on Thursday. (Reuters)

Air India is expected to increase its revenue by 9% at the end of the current financial year to R22,521 crore, minister of state for civil aviation Jayant Sinha told Lok Sabha on Thursday. In FY16, the airline’s revenues were at R20,526.11 crore.

The main reason for this increase in revenues is improvement in capacity utilization in terms of revenue passenger kilometers (RPKMs) by 6.8% and an increase in passenger carriages by 6.2% when compared to the previous year 2015-16. The Passenger Load Factor is also expected to increase by 1.2% in absolute terms ie from 75.6% in FY 2015-16 when compared to to 76.4% in FY 2016-17.

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In FY16 Air India registered an operating profit of R105 crore but the revenue increased by only 2% from FY15. Most of the improvement in the fianacials were attributed to the increased operational efficiency and substantial reduction in crude oil prices.

From November, 2015, in addition to Riyadh route, the Boeing 777 aircraft was deployed on the Delhi to London route and from December the same aircraft started to operate on the Bangalore – Delhi-San Francisco route which has helped in increasing the utilization of Boeing 777s over 14 hours per day from November onward compared to just 8 hours before.

“The government approved a Turnaround Plan (TAP) and Financial Restructuring Plan (FRP) for operational and financial turnaround of Air India. The TAP and FRP provides equity infusion of R30,231 crore up to year 2021 subject to achievement of certain milestones as laid down in the TAP and FRP.
The Company has made substantial progress in both operational as well as Financial Areas as per TAP Milestones,” the minister said in a written statement.

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