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.