Almost all airlines in India, barring Jet Airways, IndiGo and GoAir, suffered losses in 2012-13 with Air India suffering the highest loss of Rs 5,490 crore, Lok Sabha was told on Monday.
The no-frill carrier SpiceJet registered a loss of Rs 2,798.2 crore in 2012-13, Jet’s low-cost subsidiary JetLite recorded a loss of Rs 2,468 crore, Minister of State for Civil Aviation G M Siddeshwara said in reply to a question. Low-cost airline IndiGo earned a profit of Rs 7,958 crore while GoAir recorded a profit of Rs 851 crore, he said.
A major reason for the losses was the changing air transport environment dictated by the global economic scenario, forcing airlines to seek structural adjustments in order to survive, Siddeshwara said. In India, important causes include the high and growing debt burden, higher operating costs, huge taxation on fuel, high airport charges and maintenance costs which were afflicting the airline industry, he said.
Air India’s provisional losses in 2013-14 stood at Rs 5,389 crore, as the government was taking a number of measures to beef up its financial position, Civil Aviation Minister Ashok Gajapathi Raju said in reply to another question.
The measures included upfront equity infusion of Rs 6,750 crore, equity for cash deficit support of Rs 4,552 crore till 2017-18 and equity for already guaranteed aircraft loan of Rs 18,929 crore till financial year 2021.
Read the full report at Asian Age