Less flying due to pilots’ strike reduces AI losses

With no end in sight to the 24-day old strike by a section of Air India pilots,civil aviation minister Ajit Singh said that the airline’s losses have lowered due to lesser amount of flying

Written by ENS Economic Bureau | New Delhi | Published: June 2, 2012 12:58 am

With no end in sight to the 24-day old strike by a section of Air India pilots,civil aviation minister Ajit Singh today said that the airline’s losses have lowered due to lesser amount of flying.

“Less you fly,less you lose,” the minister responded to a query on the losses incurred by the airline on account of ongoing strike by nearly 400 pilots operating on international sectors.

“Most of our losses were on account of long-haul international flights,” Singh added. He said the airline is able to maintain a bulk of its international schedule as it is currently operating 38 flights against 45 that it was operating before the strike.

While the ongoing strike translated into Rs 10 crore revenue loss per day,it has resulted in Rs 6 crore savings on fuel bill,said Air India CMD Rohit Nandan. “Our fuel bill is down from Rs 16 crore daily to Rs 10 crore,” Nandan said.

In the last two months,the airline’s losses have decreased from Rs 16 crore to Rs 4-5 crore per day on account of reduced interest outgo. “After the financial restructuring effective April 1,2012,the airline’s monthly interest outgo has reduced from Rs 225 crore to Rs 25 crore. This has resulted in reduction of losses,” said Nandan. The loss-making company was incurring Rs 2,500 crore as annual interest payments alone.

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