NEW DELHI, Mar 10 (PTI): Air India's revenue is expected to grow to Rs 225.21 billion this financial year, a rise of around 10 per cent as against last fiscal's, on account of higher passenger earnings and increased capacity.
"The national carrier is expecting a total revenue of Rs 225.21 billion as compared to Rs 205.26 billion in FY 2015-16, an increase of around 9.7 per cent over the previous year, Minister of State for Civil Aviation Jayant Sinha said in a written reply in Lok Sabha on Thursday.
The Revenue Passenger Kilometers has improved by 6.8 per cent and Passenger Carriages improved by 6.2 per cent during the on-going fiscal as compared to the previous year, he said.
The Passenger Load Factor is also expected to increase by 1.2 per cent to 76.4 per cent in the current fiscal from 75.6 per cent in financial year 2015-16, he said.
Further, the utilisation of Boeing 777-200 LR has also improved to over 14 hours per day because of the introduction of Delhi-London and Bangalore-Delhi-San Francisco route, the Minister said.
Meanwhile, the government has ruled out any proposal seeking to convert a part of Air India's long-term borrowings into equity or privatising the airline.
Indian government is not considering inducting banks as strategic investors in Air India or privatising the airline, Minister of State for Civil Aviation Jayant Sinha said in Lok Sabha.
Earlier, a section of media had reported that Air India had asked banks to recast its long-term debt of Rs 90 billion through the Scheme for Sustainable Structuring of Stressed Assets (S4A).
As part of the airline's turnaround plan, the minister said till date Rs 247.24 billion have been released as equity support to Air India.
As part of the turnaround strategy for Air India, the company with the overall support of the government has initiated a number of steps in order to cut costs and losses, he said.
The airline has constantly been improving its operational and financial performance, he said, adding it posted an operating profit of Rs 1.05 billion in FY 2015-16, thereby advancing the turnaround plan target by two years.