Air India likely to emerge as cash surplus company next fiscal
New Delhi: Air India is likely to emerge as a cash surplus company in the next financial year with a net earning of over Rs 1,000 crore on the back of high passenger revenue and sale and lease back of Boeing 787 Dreamliners.
The Air India board, which met here on Tuesday, finalised the annual budget for 2013-14 weeks after government approved the equity infusion of Rs 5,000 crore.
"The company is expected to be EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) positive in the year 2013-14 by about Rs 1040 crore," an Air India official said.
This is due to the increase in operating revenue by Rs 3,235 crore as a result of increase in capacity by 24 percent.
"The total revenue next year is budgeted at Rs 19,393 crore - an increase of 20 percent over the previous year," the official said.
Last week, a senior Air India official had said that the airline would end this financial year (2012-13) with EBITDA positive of Rs 65 crore.
The Board had also approved the sale and lease back proposal for the Boeing 787 and sale of Boeing 777-200 LR aircraft which would bring down the overall cost platform for Air India.