Coronavirus | Air India to incur ₹30-35 crore loss per day following suspension of operations

Air India’s total earnings per day are around ₹60-65 crore and 90% of this comes from passenger revenue.

March 25, 2020 02:28 pm | Updated December 03, 2021 06:49 am IST - Mumbai

Air India flight at Chennai Airport. File

Air India flight at Chennai Airport. File

Flag carrier Air India is expected to incur losses to the tune of ₹30-35 crore per day following the suspension of operations in the wake of coronavirus pandemic, according to a source.

With stringent border controls across the countries to restrict movement of people, many countries have barred international flights in their territory amid COVID-19. India has also announced a temporary ban on flying.

“We will not be operating a single commercial flight along with other domestic carriers as per the government’s order, yet our daily losses will still be in the range of ₹30-35 crore.


“Though there will not be ceratin costs such as fuel, ground handling, airport fee during the suspension of oprations, we still will have to make payments towards salaries and allowances, lease rentals, mimimum maintenance, besides the interest payment, among others,” the source told PTI.

Air India’s total earnings per day are around ₹60-65 crore and 90% of this comes from passenger revenue, he said adding, “the expenses too are in the same range. So we are earnings before interest, taxes, depreciation, and amortization (EBITDA) positive or in a way meeting our all expenses.”

Air India’s salary bill stands at around ₹250 crore per month while the aircraft lease rentals outgo is around $30 million per month as per the source.

The airline has 21 Boeing B787-800s on lease in addition to 27 Airbus A320Neo planes. The lease rental for each Boeing 787 is $1 million per months and $400 per month for an A20Neo, as per the source.

Besides, the airline has to make as much as ₹225 crore per months towards interest on borrowings among others.


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