New Delhi: Air India’s turnaround looks unlikely as the aircraft the airline had bet on is losing money on all deployed routes.
An internal route economics analysis done by Air India shows that the airline has lost over Rs 1,800 crore on all international routes operated using the Dreamliners till January of the last financial year.
This is nearly half the losses of around Rs 3,900 crore incurred by the carrier on international flights and about a third of net losses of Rs 5,500 crore estimated for 2014-15.
On the Delhi-Sydney-Melbourne route itself the airline has lost over Rs 300 crore in the first 10 months of the financial year. Losses on the Delhi-Rome-Milan flight tipped over Rs 150 crore. On the Amritsar-Delhi-Birmingham, Amritsar-Delhi-London, Mumbai-Singapore flights losses stand at Rs 125 crore, Rs 200 crore and Rs 110 crore, respectively.
Meanwhile, lower than expected occupancy levels forced Air India to halve frequencies to Moscow to two flights per week to contain losses in February this year. The Delhi-Moscow flight has piled up losses of Rs 60 crore since the carrier resumed services to Moscow in July 2014, after a gap of 15 years.
06/04/15 Sharmistha Mukherjee/Financial Express
An internal route economics analysis done by Air India shows that the airline has lost over Rs 1,800 crore on all international routes operated using the Dreamliners till January of the last financial year.
This is nearly half the losses of around Rs 3,900 crore incurred by the carrier on international flights and about a third of net losses of Rs 5,500 crore estimated for 2014-15.
On the Delhi-Sydney-Melbourne route itself the airline has lost over Rs 300 crore in the first 10 months of the financial year. Losses on the Delhi-Rome-Milan flight tipped over Rs 150 crore. On the Amritsar-Delhi-Birmingham, Amritsar-Delhi-London, Mumbai-Singapore flights losses stand at Rs 125 crore, Rs 200 crore and Rs 110 crore, respectively.
Meanwhile, lower than expected occupancy levels forced Air India to halve frequencies to Moscow to two flights per week to contain losses in February this year. The Delhi-Moscow flight has piled up losses of Rs 60 crore since the carrier resumed services to Moscow in July 2014, after a gap of 15 years.
06/04/15 Sharmistha Mukherjee/Financial Express
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