Prime Minister Narendra Modi in his Independence Day speech talked about Air India's turnaround.
Air India said, “it believes to log over Rs 100 crore operating profit in the last fiscal and projecting to cross the Rs 700 crore mark in the current financial year.”
Senior officials said, "We are sure to cross Rs 100 crore worth of operating profits in the last fiscal, largely due to low fuel prices as well as improved performance. In the current financial year, we are projecting that this figure will jump to Rs 700-800 crore."
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 biggest challenge before the airline was the massive debt burden of Rs 52,000 crore, whose servicing alone is costing the airline around Rs 5,800 crore per annum,”officials said.
After obligation overhauling, the money crevice amongst working and net benefit was assessed around Rs 4,000 crore. The bearer had brought about lost Rs 5,859.91 crore in 2014-15.
Air India Officials said,"A proposal could be to convert the debt into equity. It is for the government to take a final call, but we have flagged it.
They added that," Maintaining that the airline was consolidating and expanding, the officials exuded confidence that Air India would become "very good operationally in the coming months by trying to adopt a more aggressive strategy in the market".
This would be accomplished through quick development in its universal and local system, alongside an armada extension arrangement throughout the following 3-4 years, they said.
Whenever reached, Air India CMD Ashwani Lohani, said, "We are making a course for recuperation. In any case, there is still far to go because of the obligation load and other legacy issues." "We need to bounce to Rs 700-800 crore worth of working benefits in the current monetary. Be that as it may, this being a business venture and given the condition of the flight business around the world, this is the thing that we fancy. Everybody is putting in their best," Lohani told PTI here.
To questions on Air India's system extension arranges, the authorities said that the aircraft dispatched the Ahmedabad-London – Newark flight on Independence Day, months after the New Delhi-Vienna and New Delhi-San Francisco administrations. The carrier is wanting to twofold the San Francisco administration from 3 to 6 days a week from November 1 this year.
The arrangements are to dispatch a flight to Madrid in January and to Washington or Toronto by April-May one year from now. Alternate courses on the iron block are Copenhagen and a few destinations in Africa, they said.
On the residential front, the arrangements are to interface a few Tier-II and Tier-III urban communities, they said, calling attention to that "there is a great deal of space and we need to take the principal mover preferred standpoint" to these destinations.
With respect to armada extension program which would be a blend of lease or deal and rent back, they said while three new ATR turboprop planes have as of now been accepted to serve the local course development, "orders for ten more are required to be set in the following week to 10 days." Besides, Air India has additionally put orders for 30 Airbus A-320s, six Boeing 787 Dreamliners and three Boeing-777s.
Throughout the following four years, "We will either purchase or rent a sum of 115 air ship (of various sorts) and resign 15 old ones. So we will include 100 planes in this period," they said.
However on the other side, the authorities likewise communicated worry over "falling yields" saying this has been a component influencing every single Indian bearer which have seen their yields falling by as high as 10%.
They additionally discussed a few advertising strategies embraced in the later past like coordinating AC-II level train to a minute ago admissions, propelling day-return flights and enhanced in-flight administrations to upgrade its piece of the overall industry.
Other than growing its course system and armada, Air India has been taking a shot at approaches to resuscitate its fortunes by lessening costs in an assortment of ways.
"I have been more than once accentuating on economy, checking of inefficient use and keeping up faultless behavior and conduct," Lohani has said in a progression of late solid mandates excepting procuring of extravagance taxis or top of the line lodging rooms abroad or notwithstanding inviting himself with bundles or conveying his attachés.
"All these steps have had a major impact not only on our finances but also on the culture and the value system of the airline," the CMD said.