Air India suffers a Rs 500 cr loss: Patel

New Delhi, Dec 8 : Civil Aviation Praful Patel Tuesday said Air India has suffered a loss of Rs 500 crore in 2008-09.

'At the time of merger i.e. 2006-07, the loss of Air India was Rs.447.93 crores. The loss for 2008-09 is Rs.5000 crores (approximately),' Patel said in Rajya Sabha.

The loss for the year 2007-08 was Rs.2226.16 crores and it is expected to be of the order of Rs.5,000 crores (Prov.) during the year 2008-09.

'The main reasons for the losses are prevalent economic recession, low yields, load factors, decline in cargo and freight revenue, increase in fuel expenditure in 2008-09 and increase in aircraft maintenance expenditure,' the Minister said.