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AI likely to record Rs 35-cr net loss

Our Bureau

NEW DELHI, Aug. 28

THE Air India board meets here on Wednesday to ``approve and announce'' the airline's audited financial results for 1999-2000.

Although senior AI officials like the Director-Finance, Mr. S. Ranganathan, were in the Ministry of Civil Aviation for the better part of the day in preparation for the announcement, they refused to divulge details.

However, sources said the airline had turned the corner and was likely to announce an operating profit and a lower net loss of about Rs. 35 crores. AI had recorded a net loss of Rs. 174 crores in 1998-99, with its highest net loss being Rs. 297 crores du ring 1996-97.

``The fact that the Minister for Civil Aviation, Mr. Sharad Yadav, is to announce the results on Wednesday soon after the board finishes its deliberations is a pointer of things to come,'' senior airline officials said.

Mr. Yadav had, in May this year, informed Parliament that there had been a sharp decline in losses suffered by AI with the airline reporting a provisional loss of Rs. 89.75 crores during 1999-2000.

AI had been taking several steps to improve its bottomline such as rationalisation of routes on which it was operating, withdrawing from certain loss-making routes and going in for code share and block space arrangements with several alliance partners.

However, there was some confusion whether the issue of AI taking aircraft on dry lease would be discussed at the meeting. While aircraft manufacturers maintained that a decision of leasing of a few Airbus A-310 aircraft was likely at the meeting, this wa s denied by senior officials of the airline.

The AI board had met in Delhi on August 21 and endorsed the management's decision to re-tender to meet the airlines requirement for dry leasing of Airbus A-310 aircraft. The last date for submission of tenders was August 25 and the aircraft were proposed to be deployed largely on the Gulf routes from December this year.