New Delhi: Nearly all Indian carriers — barring Jet Airways, IndiGo and GoAir — suffered losses in 2012-13 with Air India suffering the highest loss of Rs54.9 billion (Dh3.37 billion).
While no-frill carrier SpiceJet registered a loss of Rs27.98 billion, Jet’s low-cost subsidiary JetLite recorded a loss of Rs24.68 billion, according to official data.
Low-cost airline IndiGo earned a profit of Rs79.58 billion while GoAir had a profit of Rs8.51 billion.
A major reason for the losses was the changing air transport environment dictated by the global economic scenario, forcing airlines to seek structural adjustments in order to survive. In India, important causes include the high and growing debt burden, higher operating costs, huge taxation on fuel, high airport charges and maintenance costs.
Air India’s provisional losses in 2013-14 stood at Rs53.89 billion, with the government taking a number of measures to beef up its financial position.
The measures included upfront equity infusion of Rs67.50 billion, equity for cash deficit support of Rs45.52 billion until 2017-18 and equity for already guaranteed aircraft loan of Rs189.29 billion until financial year 2021.
Another Rs74 billion was being paid to Air India as government guarantee for repayment of principal amount and interest payment on non-convertible debentures proposed to be issued by the airline to financial institutions, banks and the Life Insurance Corporation.
With the national carrier formally joining Star Alliance on July 11, Air India’s passenger revenue was expected to grow by 3-5 per cent on this count.
