Maharaja suffers a loss of more than Rs. 2,200 crores in 2007-08
merisarkar news service
New Delhi, December 01, 2009
India's national carrier Air India suffered massive losses in previous financial year as per the data released by government of India on Tuesday. The total loss of Air India stood at Rs. 2226.16 crores. Moreover, the loss is expected to double during the year 2008-09.
Praful Patel, Minister of Civil Aviation said in a reply in Rajya Sabha, "It is expected to incur a loss of Rs. 5,000 crores approximately (prov.) during the year 2008-09."
In his reply, Praful Patel cited prevalent economic recession, low yields and low load factor as the main reasons for the staggering losses.
Maharaja is in deep financial trouble and an EGoM headed by finance minister Pranab Mukherjee has agreed to approve its restructuring plan on the condition that it would cut down operational cost and improve efficiency. Air India has continuously been incurring losses since 2004-05.
Praful Patel also informed in Rajya Sabha that NACIL has taken several initiatives to turnaround the performance of the company focusing on Cost Reduction and Revenue Enhancement.
Civil Aviation Minister has said that the committee of secretaries has taken note of the proposals for restructuring of Air India. Government will arrive at a decision upon those proposals.
