AndhraNews.Net - Financial performance of Air India

New Delhi: July 29, 2003

As per provisional results compiled for the period April-December 2002 and for the entire financial year 2002-03, Air India is expected to earn a Net Profit of approximately Rs.65 crore and Rs.105 crore respectively. Net results are different from operating results as they take into account non-operating performance as well. The factors attributing to Net Profit are : (i) Low finance/Interest cost primarily due to reduction in interest rates in the international market; (ii) Dividend of Rs.20 crore received from the subsidiary company, i.e. HCI, on account of profit on sale of properties; and (iii) Profit of approx. Rs.17 crores on sale of three aircraft to Ariana Afghan Airlines through the Ministry of External Affairs.

As per the budget approved by the Board of Air India for the financial year 2003-2004, the Company is expected to incur a net loss of Rs.55.50 crore. The factors attributing to the loss envisaged for the financial year 2003-2004 are (i) Cancellation/withdrawal of flights due to SARS resulting in drop in traffic and pilots non-cooperation during April/May, 2003; (ii) Increase in prices of aviation turbine fuel; and (iii) Overall recessionary trend in the international market.

This information was given by the Civil Aviation Minister Shri Rajiv Pratap Rudy in a written reply in the Rajya Sabha today.

Press Release by: PIB/DNM/SAK:29072003

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