A top Civil Aviation Official recently said the Carrier Airline of India Air India is finally about to gain its first net profits by 2019 and would be making operational profits beginning from this fiscal year because of better and improved passenger yield.
Rajiv Nayan Choubey, Secretary, Ministry of Civil Aviation said, “From December onwards, for the first time in about ten years, Air India has been consistently making operational profits. It is still making net loss, primarily because of the interest burden. But operationally, it is EBITDA positive.”
He also informed that the recovery would be even faster if the oil prices remain what they are or continues to be low. He added, “The turnaround plan of Air India envisaged that it will turnaround by 2020. Now, it is likely to turnaround one-and-half years before 2020, which means it will make net profits by 2019 instead of 2020. If only the oil prices continue to rule soft, then of course we would be very happy…Air India’s recovery would be much faster.”
He also said that every single year the central government is investing around Rs 2500 crore into this national carrier airlines. Ashok Gajapathi Raju, the Civil Aviation Minister said, “We are seeking guidance from some of the senior ministers also. There will be implications. We are hopeful that by April of next accounting year, the policy will be out.” Further talking about the emergency landings and the mishaps, the minister added, “We follow every safety procedure for all airlines including Air India. We can’t risk people’s life. No deficiency will be allowed to in flying Indian aircrafts in the sky.”
