I-A set to post Rs 180 cr loss

I-A set to post Rs 180 cr loss
ENS ECONOMIC BUREAU

MUMBAI, MAR 8: Domestic carrier Indian Airlines, is expected to take a hit of Rs 180 crore in the fiscal 2001. The domestic airline has already incurred a loss of Rs 145 crore in the first 10 months of current fiscal as compared to a profit of Rs 55 crore recorded in the same period of last year.

This would be homecoming for the airline as it broke a three-year profitability record. Though IA officials cited rising fuel bill as the main reason for the growing losses, insiders say the airline losses are mainly mismanagement by government bureacrats and intereference from the ministry.

The airline's passenger load factors is around 60 per cent for most months as passengers have jettison the airline due to poor safety record.

Aviation analysts feary that the airline has flown back to losses which could discourage the potential buyers. The airline has received pathetic response to its sell-off drive with only Hindujas and Videocon now left in the race.

The airline is already marred by a poor safety record which resulted in a air crash last year in Patna.

Like Indian Airlines, it's government-owned sister, Air-India is expected to end the year with a heavy losses as its fuel bill has crossed Rs 1,000 crore mark.