New Delhi: The losses of the cash-strapped national carrier Air India are expected to come down by Rs.1,209 crore in the current fiscal, Civil Aviation Minister Ajit Singh said Tuesday.
Speaking to reporters here, Singh said the projections are that the airline will reduce losses to Rs.3,989 crore in 2013-14 from the Rs.5,198 crore it incurred in 2012-13 as it has adopted cost-cutting measures.
The airline has incurred Rs.5,198.55 crore worth of net losses for the last fiscal from a net loss of Rs.7,559.74 crore in 2011-12.
The airline's improving performance can be attributed to its increase in revenue which grew by 9.6 percent last fiscal at Rs.16,130 crore from Rs.14,714 crore in 2011-12.
Total passengers carried by the airline too went up by five percent at 14.05 million passengers in 2012-13 from 13.04 million passengers in 2011-12.
The airline also plans to monetise its real estate assets in New Delhi, Comimbatore, Chennai and Mumbai, and hopes to raise Rs.1,000 crore which will be utilised for repayment of loans.
Air India had borrowed some Rs.21,412 crore towards acquisition of new aircraft, another Rs.22,368 crore towards working capital and owes around Rs.2,000 crore to oil retailers, besides facing accumulated losses worth Rs.22,000 crore.
The airline has also entered into fresh contracts with oil marketing companies in January which will provide it with Rs.500 crore worth savings per year.
The airline is also expected to save Rs.500 crore in the next six months by implementing cost cutting measures suggested by Professor Dholakia Committee, which has been accepted by the government.
The government has also infused a total equity of around Rs.10,000 crore in the airline till April 2013.