New Delhi, Dec 05: Indian Airlines today reported a 40 per cent reduction in its losses at Rs 134.73 crore, offsetting the hike in its fuel bill on the strength of a rigorous cost cutting exercise and improved passenger traffic. The board, at its meeting, also took note of the steps taken by the public sector carrier to synergise its operations with Air India on network expansion and route allocation, besides marketing and sales.
The reduction in the losses was reported even after the airline suffered a hike in the fuel bill by Rs 147 crore during the last fiscal and an increase of Rs 16.36 crore in the landing, parking and navigation charges, IA officials said.
The airline ended the financial year with an operating loss of Rs 134.73 crore as against Rs 220.65 crore in the previous year, implying a reduction of 39 per cent. Its net loss was recorded at Rs 196.56 crore as against Rs 246.75 crore in 2001-02 showing an improvement of 20 per cent.
Another major decision taken at today's board meeting was granting approval to a new computerised reservation system to facilitate the sale of tickets by travel agents and expansion of IA's distribution base.
Bureau Report