Civil Aviation Minister Praful Patel, on July 16, told the Lok Sabha that the provisional results of Air-India showed that the national carrier's profits have dropped to Rs 105 crore (Rs 1.5 billion).
The minister said as per the provisional results, Air-India will end the fiscal 2003-04 with a profit of Rs 105.50 crore (Rs 1.05 billion) as against Rs 133.86 crore (Rs 1.34 billion) in 2002-03.
The decline in profit was specifically due to cancellations and withdrawals during SARS (Severe Acute Respiratory Syndrome) outbreak, non-cooperation of pilots during April-May 2003, the Iraq war, increase in prices of aviation turbine fuel and overall recessionary trend in the international market.
Patel said Air-India has already taken measures to generate more revenues which included dry leasing aircraft to increase frequencies on the existing routes and operating new service stations, reducing staff strength at foreign destinations, banning recruitment except in operational areas, lowering retirement age and reducing agency commission from 7-9 per cent.
