Air India to generate profits from by 2012-13 end: Economic Survey
New Delhi, Feb 27 : India's Economic Survey for 2012-13 said Wednesday it expects national carrier Air India to start generating profits from normal operations by the end of the current fiscal March 31.
According to the Survey, which was tabled in parliament by Finance Minister P. Chidambaram, the airline has been able to achieve targets set in the turnaround plan and is expected to become EBIDTA (earnings before income, taxes, depreciation and amoritisation) positive.
"AI (Air India) has registered an all round enhanced performance; such as on-time performance at 85 percent, passenger load factor at 70.9 percent, and yield at Rs.4.31 per revenue passenger kilometre," the Survey authored by Chief Economic Advisor to the finance ministry Raghuram Rajan said.
The flag carrier has received substantial support from the government to revive itself under the turnaround and financial restructuring plan which were approved by the union cabinet last year.
The Survey pointed out that the airline has taken several initiatives towards cost cutting and revenue enhancement through leveraging of its assets which were envisaged in the turn around and financial restructuring plans which were made to improve its functional and financial position of the airline .
The plans include restructuring of the airlines' loans and financial support till 2021.