News
Air India unfit for privatization says aviation minister
June 17th 2016
“Its [Air India’s] books are so bad, I don’t think that even if it [privatization] was offered, anybody would come for it,” Indian aviation minister, Ashok Gajapathi Raju, has told local media. Read More »
India’s flag carrier has not produced a net profit since its 2007 merger with Indian Airlines. As of December 31, 2015, the airline had debts exceeding 50,000 crore rupees ($7.5 billion). The airline pays an annual interest bill of 4,000 crore, making profits elusive.
The airline has significantly curtailed its operations since 2007 and now ranks third in the country in airline market share, after IndiGo Airlines and Jet Airways. This week, chairman and managing director, Ashwani Lohani, said the airline planned to add 100 aircraft to its fleet by 2020, on sale-leaseback, including 14 wide bodies, 35 A320s, 35 ATRs and 16 B737s.
Five-year-old Mumbai-based GoAir is ready to launch international operations from 2017, according to India’s civil aviation secretary, RN Choubey. Earlier this month, the carrier took delivery of its 20th aircraft, which was its first of 72-on-order A320neos. India’s aviation industry is flourishing. One of several new market entrants, Coimbatore-based Air Carnival, will start flying this month with a single ATR72-500 between Chennai and Madurai.
