Tuesday, December 8, 2009

Losses of Air India

At the time of merger i.e. 2006-07, the loss of Air India was Rs.447.93 crores. The loss for 2008-09 is Rs.5000 crores (approximately). This information was given by the Minister of Civil Aviation, Shri Praful Patel in Rajya Sabha today.

The loss for the year 2007-08 was Rs.2226.16 crores and it is expected to be of the order of Rs.5,000 crores (Prov.) during the year 2008-09. The main reasons for the losses are prevalent economic recession, low yields, load factors, decline in cargo and freight revenue, Increase in fuel expenditure in 2008-09 and increase in aircraft maintenance expenditure.

Source : Press Information Bureau

Author's Comment : Air India serving upper class and India Post serving majority of lower class; Total number of employees in Air India - 16,000 and employees in India Post is 5,20,191 (India Post - estimated loss for 2009- 10 is about Rs 5200 Crores)

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