Economic Survey: Air India's performance has improved


HomeNewsBudget ImpactExclusiveTaxRail Budget Celeb Speak Eco Survey

Economic Survey: Air India's performance has improved

Last Updated: Wednesday, February 27, 2013, 16:38
 Comment 1
New Delhi: Air India is likely to come out of its precarious financial position this financial year with a positive cash flow, as its performance has improved considerably, the Economic Survey said on Wednesday.

"It is expected that the company will achieve positive EBIDTA (earnings before income, taxes, depreciation and amoritization) in the results for the Financial Year 2012-13," the government's key economic document, tabled in Parliament, said.

It said the national carrier had registered "an all-round enhanced performance" like on-time performance at 85 percent, passenger load factor at 70.9 percent and yield at Rs 4.31 per revenue passenger kilometre.

"For the first half of the year, performance has been in line with the target set in the Turnaround Plan," it said.

Air India, the Survey said, had taken several initiatives to cut costs and enhance revenues like route rationalisation, phasing out and grounding of old fleet, freezing of employment in non-operational areas, leveraging assets of the company to increase MRO (maintenance, repair and overhaul) revenue and revenue from the company's real estate properties.

As part of its Turnaround Plan, the airline had also initiated measures to operationalise subsidiary companies in ground handling and MRO and transferring manpower and equipment to them to make them independent profit centres.

The Survey said that domestic passenger traffic had "marginally" declined from 108 million between January and November 2011 to 106 million in the same period last year.

However, international traffic handled at Indian airports went up to 37.8 million during January-November 2012 as against 36.20 million during the corresponding period of the previous year.


First Published: Wednesday, February 27, 2013, 16:38


When an airline says it had 70% seat factor, conversely it means 30% of the inventory has gone empty Here the EMSR is zero So AI must strive to work on this and optimize revenue, key to its profitability Successful airlines have seat factors over 77 to 80%-Apur -India
First Prev 1 Next Last 

Post your Comments

Place :
Email :  
Comments :  
Other Stories
MSME Sector

P Chidambaram proposed continuing non-tax benefits to these units for three years.

Full Article »

IT-BPO Sector

Clarity on tax issues related to R&D centres in IT soon.

Full Article »


Big push to infra with Rs 50k cr tax-free bonds, two new ports.

Full Article »

Real Estate Sector

FM raised tax deduction limit by Rs 1 lakh for the first time home buyers.

Full Article »

Auto Sector

Excise duty on SUV will be raised to 30 percent from 27 percent.

Full Article »

More »

Latest Videos
Budget 2013: Tax slab remain unchanged Budget 2013: PM commends Chidambaram's budget Union Budget 2013: Chidambaram's Budget speech
Budget 2013: Tax slab remain unchanged Budget 2013: PM commends Chidambaram's budget Union Budget 2013: Chidambaram's Budget speech
rail budget
Rail Minister announced no hike in passenger fares.
know your fm
P Chidambaram- Man of all seasons.
Opinion Poll
How would you see Budget 2013 as?
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved