The Hindu : Air India makes profit

Online edition of India's National Newspaper
Wednesday, Apr 03, 2002

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National

Air India makes profit

By Gargi Parsai

New Delhi April 2. After suffering losses for six years, Air India has made a profit of over Rs. 25 crores in 2001-02. For the next financial year, it has set a target of Rs. 50 crores. It suffered a loss of Rs. 40 crores last year.

The profit has come at a time when many international airlines have succumbed to the economic recession following the terrorist attacks on the World Trade Center in New York. Swiss Air, SAS, United Airlines and Air Canada have pulled out of India and several others have curtailed services globally and downsized their staff.

Without resorting to any of these measures, Air India has come out of the red. Last year, the airline faced the ban on Pakistan airspace and had to re-route its westbound flights over a longer route leading to higher cost of operations. It increased capacity by dry leasing five Airbus 310-300 and added 0.5 million seats to its capacity without increasing manpower.

As a result, its manpower-aircraft ratio has declined from 690 to an aircraft to 540 an aircraft. .

The airline will dry lease three more aircraft and launch new flights from Guwahati to Bangkok and the Gulf. Its joint venture flights with Indian Airlines have been segregated to improve efficiency. The airline is also examining the feasibility of introducing non-stop operations over the polar route between India and the United States.

This will provide passengers with more convenient and shorter flying time to the U.S., besides providing connectivity to interior points in the U.S.

The Civil Aviation Minister, Shahnawaz Hussain, said Air India was finalising its aircraft rationalisation and expansion programme for a new modern fleet to sustain long new routes and for long-term growth.

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