Air India to lose around Rs.5,400 crore in 2009-10: Patel

New Delhi, March 9 : National carrier Air India is expected to incur losses of around USD 1.8 billion (Rs.5,400 crore) this fiscal and the trend is likely to continue for a few more years, Civil Aviation Minister Praful Patel said Tuesday.

"The trend of losses is likely to continue for a few more years," the minister told the Rajya Sabha. He did not say when the airline would start making profits. The state-owned carrier is run by the National Aviation Co. of India Ltd (NACIL).

With the expected losses of USD 1.8 billion (Rs.5,400 crore) in 2009-10, the carrier's losses will mount to over USD 2.64 billion (Rs.13,174 crore) in three straight fiscals. The carrier had incurred a loss of USD 445.2 million (Rs.2,226.16 crore) in 2007-08 and USD 1.11 billion (Rs.5,548 crore) in 2008-09.

"The airline has initiated action as part of the turnaround plan and is focusing on fleet and manpower rationalisation, route profitability, and structural changes. These plan envisages benefits of USD 382.2 million (Rs.1911 crore) for the current financial year," Patel said.

These initiatives taken by the airline will only result in savings of USD 150.6 million (Rs.753 crore) in fiscal 2010-11, he said.

The minister also said the airline's outstanding fuel dues till January end stood at USD 348.2 million (Rs.1741 crore). "We have asked the airlines to clear the dues expeditiously."

The airline is waiting for a cabinet nod to raise its working capital by USD 200 million (Rs.1,000 crore). Currently the airline's working capital is USD 3.4 billion (Rs.17,000 crore).

The government last month approved equity infusion of USD 160 million (Rs.800 crore) for the ailing carrier in two instalments to tide over the cash flow problem and finance fleet acquisition plans.