AI reports loss of Rs 3,450 cr

Already reeling under huge losses and facing a liquidity crunch, Air India has suffered a loss of Rs 3,450 crore (Rs 34.5 billion) in the first half of the current fiscal.

"As per provisional estimates, the losses before tax for the first half of the current financial year are approximately Rs 3,450.57 crore (Rs 34.5 billion)," Vayalar Ravi, Minister for Civil Aviation and for Overseas Indian Affairs, said in a written reply in the Rajya Sabha on Thursday.

The flag carrier has incurred losses to the tune of Rs 2,226.16 crore (Rs 22.26 billion), Rs 5,548.26 crore (Rs 55.48 billion) and 5,552.44 crore (Rs 55.52 billion) during 2007-08, 2008-09 and 2009-10 respectively.

The Union Government has released Rs 2,000 crore (Rs 20 billion) as equity infusion to the company to strengthen the balance sheet and improve the debt equity ratio of the national carrier.

In this budget, Finance Minister Pranab Mukherjee has made a budgetary support of Rs 1,200 crore (Rs 12 billion) to the ailing national carrier as additional equity infusion.

This would be the third tranche of equity for Air India, which received Rs 800 crore (Rs 8 billion) and Rs 1,200 crore (Rs 12 billion) respectively in the 2009-10 and 2010-11 budgets.