Cash-strapped national carrier Air India got a Rs. 5,000 crore additional equity infusion in the next fiscal as part of its turnaround plan. The ailing Maharaja will have to generate Rs. 1,318.60 crore internally in 2013-14.
According to the budget documents, Rs. 5000 crore has been earmarked for equity infusion in the National Aviation Company of India Ltd (now Air India Ltd). It will also be able to generate Rs. 1,318.60 crore through internal and extra budgetary resources (IEBR) in 2013-14.
In April, 2012, the government had approved a turnaround plan and a financial restructuring plan for improving the operational and financial performance of Air India as its losses had increased considerably to Rs. 7,853 crore in 2011-12 from the levels of Rs. 5,548.26 crore in 2008-09.
The turnaround plan included Rs. 30,000 crore equity infusion over a nine-year period starting 2012-13. Accordingly, Rs. 4,000 crore was earmarked for Air India in this fiscal’s budget, later increased to Rs. 6,000 crore in the revised estimates. In 2011-12, the airline was given a budgetary support of Rs. 1,200 crore.
Civil Aviation Minister Ajit Singh had told Lok Sabha on Wednesday that the national carrier has turned EBITDA (Earnings Before Interest, Depreciation, Tax and Amortization) positive to the tune of Rs. 48.75 crore between April and December 2012. In the first nine months of the current fiscal, Air India earned an operating revenue of Rs. 11,400.44 crore while its operating expenses were Rs. 13,954.47 crore, resulting in an operating loss of Rs. 2,554.02 crore, he added.
The Economic Survey for 2012-13, tabled in Parliament on Wednesday, said the airline is expected to achieve positive EBITDA in the current fiscal and its performance in the first six months has been in line with the target set in its turnaround plan. It had also said that the national carrier registered all-round enhanced performance such as on-time performance at 85 per cent, passenger load factor at 70.9 per cent and yield at Rs. 4.31 per revenue passenger km during the April-October period.