Air India expects 'modest operating profit' in FY16: Mahesh Sharma

The national carrier is implementing a turnaround plan under which it is to get an equity infusion of Rs 30,231 crore up to 2021.

New Delhi:

Air India, which has seen its operating loss fall consistently in the past few years, expects to post a -"modest operating profit-" for the just- concluded fiscal, Union Minister Mahesh Sharma said on April 26. The national carrier is implementing a turnaround plan under which it is to get an equity infusion of Rs 30,231 crore up to 2021 subject to achieving certain milestones as laid out in the plan.

-"The operating losses of Air India have consistently reduced and 2014-15, the same stood at Rs 2,636.19 crore as compared to Rs 5,138.69 crore in 2011-12,-" Sharma, who is the Minister of State for Civil Aviation, said in a written reply to Rajya Sabha.

For the first time since merger of Air India and Indian Airlines in 2007-08, -"Air India is expected to earn a modest operating profit during 2015-16-", he noted. To a query on whether it is a fact that the government is planning to constitute a committee to look into the possibility of disinvesting 49 per cent stake in Air India, Sharma replied in the negative.

In a separate reply, Sharma said Air India shelled out Rs 18.46 crore towards advertisement and publicity in 2014-15 fiscal. During the same period, the expenditure on passenger amenities stood at Rs 722.54 crore.