Mumbai: The civil aviation ministry has asked SBI Capital Markets to
review Air India's turnaround plan in view of changes in the operating
environment and the airline's inability to reduce losses.
In FY15, the airline is expected to post consolidated net loss of about Rs 5,400 crore, which is identical to the loss in previous year despite substantial savings in the fuel bill. The gains have been offset by lower than expected revenue, an increase in engineering and maintenance costs and lease rents.
The airline's accounts are yet to be audited and the profit and loss figures are provisional in nature.
Air India is facing increasing competition from both no frills and full service airlines in domestic and international routes. The turnaround plan, which was approved in 2012, also did not contemplate the Jet-Etihad alliance and proposed relaxation of government's norms on international flying (5/20)- two factors which will impact Air India's growth.
Read news in full 04/06/15 Aneesh Phadnis/Business Standard
In FY15, the airline is expected to post consolidated net loss of about Rs 5,400 crore, which is identical to the loss in previous year despite substantial savings in the fuel bill. The gains have been offset by lower than expected revenue, an increase in engineering and maintenance costs and lease rents.
The airline's accounts are yet to be audited and the profit and loss figures are provisional in nature.
Air India is facing increasing competition from both no frills and full service airlines in domestic and international routes. The turnaround plan, which was approved in 2012, also did not contemplate the Jet-Etihad alliance and proposed relaxation of government's norms on international flying (5/20)- two factors which will impact Air India's growth.
Read news in full 04/06/15 Aneesh Phadnis/Business Standard
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