Just nine of 370 daily Air India flights profitable

By: |
New Delhi | Published: November 26, 2014 8:31:21 AM

In what comes as a major setback to Air India’s (AI) government-mandated turnaround plan...

Of the 120 international flights, only 3 make money, while on the domestic, front 6 break even. ReutersOf the 120 international flights, only 3 make money, while on the domestic, front 6 break even. Reuters

In what comes as a major setback to Air India’s (AI) government-mandated turnaround plan, minister of state for civil aviation Mahesh Sharma told Parliament on Tuesday that only 9 out of 370 daily flights of the flag carrier are currently profitable. Of the 120 international flights, only 3 make money, while on the domestic, front 6 break even.

This assertion, which is in the form of a written reply to the Lok Sabha, is a stark contrast to recent claims by the AI management that performance is improving across several operational parameters such as passenger load factors and yields. AI officials have said that two-thirds of its flights now meet variable costs like fuel and other airport charges.

These costs, however, do not include interest costs and staff salaries. The routes AI makes money on are Delhi-Leh, Delhi-Kolkata, Leh-Jammu, Delhi-Srinagar, Srinagar-Leh and Delhi-Hyderabad-Vijayawada. While most of these routes see limited competition, this also means that the carrier is making losses on Delhi-Mumbai route. Delhi and Mumbai airports account for about 60 per cent of all national air traffic. The three international routes registering profits are Cochin-Kozhikode-Jeddah, Kozhikode-Sharjah and Kolkata-Yangon. (FE)

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Consumers can’t get 4G speed in Delhi, Mumbai as Bharti licence delayed
2Large defaulters like freeloaders: Raghuram Rajan
3No more missed calls, just a ‘tapp’ will convey the message