Maharaja Air India turns profitable. Winners are – Modi Govt , UPA 2 Govt and Ashwani Lohani - CMD of Air India.
Reduced Fuel costs, Entry into the Star Alliance (International Travelers may know this), rapid expansion in its international and domestic network in last three years maybe the prime reasons of this turnover.
But, let’s not forget Ashwani Lohani, the man who turned around the ailing Madhya Pradesh's Tourism Deptt into robust and profitable entity is in center stage once again, making Air India profitable as CMD of Air India.
Reduced Fuel costs, Entry into the Star Alliance (International Travelers may know this), rapid expansion in its international and domestic network in last three years maybe the prime reasons of this turnover.
But, let’s not forget Ashwani Lohani, the man who turned around the ailing Madhya Pradesh's Tourism Deptt into robust and profitable entity is in center stage once again, making Air India profitable as CMD of Air India.
In his Independence Day address from the ramparts of Red Fort, the Prime Minister, while speaking on the turnaround of major PSUs, said, "Today I can say with complete satisfaction that Air India, which used to be notoriously known for incurring losses, has improved its operations leading it to log operational profits."
The 10 year 30000 crore bailout package that started in 2012 under UPA2 has helped Aircraft purchases especially fuel efficient Dreamliners replacing some of the old 747-400 planes.
We also need to understand difference between "Cash Loss" and "Accounting Loss". Cash Loss means your actual cash expenses is more than actual cash revenue, however Accounting loss is different here we also adjust non-cash expenses and revenue.
Air India was struggling to overcome their cash loss position after Indian Airlines(Domestic) and Air India (International) were merged.
After that Air India started making money and finally they were in a position to overcome this cash loss position.
Air India was struggling to overcome their cash loss position after Indian Airlines(Domestic) and Air India (International) were merged.
After that Air India started making money and finally they were in a position to overcome this cash loss position.
Air India still has accumulated losses of over Rs 35,000 crore and a debt of over Rs 45,000 crore, remember. There is still a long way to go as these numbers indicate.
Akhilesh Mittal
