Mumbai: Despite its revenues taking off, Air India’s bottomline will remain grounded for another year. The national carrier expected to post losses in the region of Rs 3,900 crore for 2013-14, senior company executives estimate, despite a projected 18% jump in revenues to Rs 19,500 crore. With the Jet-Etihad alliance through and the Tata-SIA combine waiting in the wings, Air India will find it hard to fight back given its finances are in a shambles.
Air India officials said the airline’s turnover had risen 14% year-on-year between April and December. While the carrier will remain in the red, the loss will be smaller than the Rs 5,200 crore reported for 2012-13 and Rs 7,560 crore posted the year before. Air India awaits an equity infusion by the government of Rs 3,500 crore in the current year and officials say the funds should be in by March. Meanwhile, the carrier has borrowed Rs 2,000 crore against a guarantee from the government at an interest rate of 10.5-12%.
Read news in full 08/01/14 Rhik Kundu/Financial Express
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