Air India likely to make Rs 6 crore profit this fiscal, first since merger

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For the first time since merger of Indian Airlines into Air India, the national carrier is likely to report an operating profit of about Rs six crores in the current fiscal, owing to a combination of factors including lower fuel costs and Dreamliner operations, among others.

The Dreamliners (Boeing 787-800) are helping the company to turnaround it’s business in a big way, said Anil Mehta, the Officer on Special Duty (OSD) to the Air India Chairman and Managing Director.

At present, the state-run carrier has 21 Boeing 787-800 aircraft in its fleet of 107 planes.

“These (Dreamliner) aircraft have reduced our operating costs and increased our operating revenues in recent years… we will post an operating profit in the range of Rs 6 to Rs 7 crore this year,” Mehta said during a press conference here today.

Mehta claimed that unlike the older aircraft having 195 seat capacity, the new Dreamliner is capable to take 256 passengers in single flight, enabling Air India to cover it’s costs for the flights it operates through these aircraft.

“Such increase in seat capacity is a decisive factor in this business, as we are now able to take more passengers in single flight,” he said.

In addition, these aircraft burn less fuel and that has helped the airline reduce its fuel bill and the subsequent reduction in losses as well, he said.

Civil Aviation Secretary R N Choubey had also early last month said Air India was going to report operating profit, about Rs six crore, in this financial year.

The airline is benefiting from fall in crude oil prices and improved operational efficiency, he had said.

Besides, better on-time performance and increased availability of passenger aircraft have helped (Air India) in improving operational efficiency, Choubey had said.

[Source:- Financial Express]