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Mumbai: According to a report, Civil Aviation Minister Praful Patel recently informed in the Rajya Sabha that Air India (AI) is expected to incur losses of around 1.8 billion (Rs 5,400 crore) this fiscal and the trend is likely to continue for a few more years. However, he did not mention the timeline for the airline to start making profits .
He mentioned that with the expected losses of USD 1.8 billion (Rs 5400 crore) in 2009-10, Air India's losses will mount to over USD 2.64 billion (Rs 13,174 crore) in three fiscals. The airline had incurred a loss of USD 445.2 million (Rs 2,226.16 crore) in 2007-08 and USD 1.11 billion (Rs 5,548 crore) in 2008-09. "The airline has initiated action as part of the turnaround plan and is focusing on fleet and manpower rationalisation, route profitability, and structural changes. This plan envisages benefits of USD 382.2 million (Rs1911 crore) for the current financial year. These initiatives taken by the airline will only result in savings of USD 150.6 million (Rs 753 crore) in fiscal 2010-11," added Patel.
Patel added that the airline's outstanding fuel dues till January end this year stood at USD 348.2 million (Rs1741 crore). "We have asked the airline's to clear the dues expeditiously. The airline is waiting for a cabinet nod to raise its working capital by USD 200 million (Rs1, 000 crore). Currently the airline's working capital is USD 3.4 billion (Rs 17,000 crore)," mentioned Patel. The Indian government last month approved equity infusion of USD 160 million (Rs 800 crore) for the airline in two instalments to tide over the cash flow problem and finance fleet acquisition plans.
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