NEW DELHI, February 2: Air-India has recorded losses of Rs 102 crore in the first half of the current year and expects the losses to climb further for the year as a result of the South Asian currency crisis and the recent fare war in the Indian market.Addressing a news conference here today, the Air-India managing director, Michael Mascarenhas, said the currency crisis had forced the airline to withdraw services to Seoul and consider the reduction in the number of flights to Japan. As a result of the fall in the Thai and Indonesian currencies A-I earned only half its normal revenue from the sectors. Although A-I did manage to bring down losses in October to just Rs 5 crore, the depreciation of the rupee and other South Asian currencies had hit its profitability projections for the year, he said.The depreciation of the rupee alone has increased expenses for the airline by Rs 75 crore. The airline makes all payments for aviation turbine fuel, IATA settlements and salaries for overseas crew in USdollars.However, Mascarenhas ruled out any review of the productivity linked incentive scheme (PLI) for employees despite the losses being incurred by the airline. A-I pays roughly Rs 135 crore annually on account of the PLI for maintaining on-time performance and service. The interest payout on its borrowings amounts to Rs 80 crore per annum. The airline will require to earn additional revenue of at least Rs 200 crore to make good this loss.The airline also expects to make heavy losses in the last quarter as a result of the fare war with British Airways. ``The fare war was not started by us. It was unnecessary, unprofessional and in violation of the regulations of the Directorate general of Civil Aviation (DGCA),'' Mascarenhas said.
