AI expected to post 'improved' operating profit margin: Minister
Tuesday - February 7, 2017 10:24 pm ,
Category : INDIA
Mahesh Sharma, minister of state for civil aviation, on Wednesday said Air India was likely to post an operating profit in 2015-16. “The government is committed to the revival of Air India. The country should have a flag carrier. In 2015-16, the airline is expected to register an operating profit for the first time in 10 years,” he told Business Standard here.
Government officials said the airline might record an operating profit of about Rs 1,000 crore in FY16.
At a meeting with junior ministers on Tuesday, Prime Minister Narendra Modi had sought a road map for the revival of the airline, sources said. In the last week of February, he had written to Air India, asking why the national airline wasn’t able to post profits and whether the carrier needed government assistance to break even.
The letter also enquired about the market share of the airline and raised concern over why Air India was losing ground to its private peers. Sharma said in its reply to the Prime Minister’s Office, the airline management had sought the government’s financial support to break even in the next three years.
Though the earnings for 2014-15 haven’t been announced yet, it is expected Air India will incur an operational loss for that period. IANS
Government officials said the airline might record an operating profit of about Rs 1,000 crore in FY16.
At a meeting with junior ministers on Tuesday, Prime Minister Narendra Modi had sought a road map for the revival of the airline, sources said. In the last week of February, he had written to Air India, asking why the national airline wasn’t able to post profits and whether the carrier needed government assistance to break even.
The letter also enquired about the market share of the airline and raised concern over why Air India was losing ground to its private peers. Sharma said in its reply to the Prime Minister’s Office, the airline management had sought the government’s financial support to break even in the next three years.
Though the earnings for 2014-15 haven’t been announced yet, it is expected Air India will incur an operational loss for that period. IANS
