February 7, 2017 6:35:34 pm
Having reported an operating profit of Rs 105 crore for 2015-16 fiscal, Air India is expected to post an improved operating profit margin this year as well, even as liquidity constraints continue to impact the smooth performance of the national carrier, government said Tuesday.
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Air India, over the years and especially since the implementation of the turnaround plan, has been constantly improving its operational as well as financial performance, Minister of State for Civil Aviation Jayant Sinha said in a written reply in Rajya Sabha.
In the financial year 2015-16, the company posted an operating profit of Rs 105 crore, he said, adding, “In the financial year 2016-17 also, the company has been steadily improving its all-round performance and it is expected that the company would again post an improved operating profit margin in the current fiscal also.”
However, the Minister said liquidity constraints continue to impact the smooth performance of the company, the impact of which have been met by the government. The airline is surviving on a Rs 30,231-crore bailout package extended by the previous UPA government in 2012, as part of its turnaround plan, staggering over 10 years.
As part of this planned equity infusion, the carrier has so far received around Rs 24,000 crore from the government. Sinha said Air India has been making constant efforts for substituting its high-cost working capital loans with long-term low-cost debt.
Air India has been in consultations with various banks in this direction so that the interest comes down subsequently in the coming years.
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