NACIL to Suffer Losses of Rs 5,000 Cr: Praful Patel

Operating losses, high oil prices and debt servicing are likely to incur losses to the tune of Rs 5, 000 crores on National carrier Air India in 2008-09, said government on Tuesday.

“National Aviation Company India Ltd (NACIL) expects to register a loss of approximately Rs 5000 crores in 2008-09,” minister of state for civil aviation Praful Patel said in a written reply to a question in Rajya Sabha.

“The losses have been largely due to operating losses, which have been compounded due to the present economic recession as also the high oil prices last year and debt servicing on new aircraft,” he said.

Measures like integration and restructuring of network and schedules, fuel efficiency improvement measures and extension of credit period for all vendors etc, have been taken by NACIL, the minister said.

He said that promotions and recruitments have been put on hold, the staff asked to travel only economy class besides taking measures such as restructuring loans and credits.

In reply to another question, Patel said that Air India did not raise its fares in the recent past to remain competitive during the economic meltdown but was compelled to increase domestic fuel surcharge by Rs 400 in view of the increase in prices of ATF.
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