New Delhi, Dec 21 (PTI) Air India’s operational profit rose to INR 215 crore and net losses narrowed to INR 3,643 crore in 2016-17, according to the government.
To revive the loss-making national carrier, the government is working on the modalities for its strategic disinvestment while Ernst & Young LLP has been appointed as the transaction advisor.
According to provisional figures mentioned in a written reply given by union minister Jayant Sinha in the Lok Sabha, the airline has increased its operational profit to INR 215 crore in the last financial year.
In 2016-17, the airline had a net loss of INR 3,643 crore while operating profit rose to INR 215 crore, the provisional figures showed.
Air India incurred a net loss of INR 3,836.77 crore even as it managed to eke out an operational profit of INR 105 crore in 2015-16.
“As per the provisional figures for financial year 2016- 17, the total loans of the company as on March 31, 2017 are around INR 48,877 crore,” Sinha said.
To a question on whether the government has consulted all stakeholders, including workers’ unions before the disinvestment, he replied in the negative.
On June 28 this year, the Cabinet Committee on Economic Affairs (CCEA) gave its in-principle approval for strategic disinvestment of Air India and its five subsidiaries.
An Air India Specific Alternative Mechanism, headed by Finance Minister Arun Jaitley, is working on the modalities.
The On-Time Performance (OTP) of Air India flights is monitored at the highest level by the top management of the airline as well as the civil aviation ministry, Sinha said in another written reply.
Various measures, including initiatives to increase the availability of resources in terms of crew and aircraft, are being taken to improve the OTP, he added.