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IA hopes to end this fiscal with small loss

Ashwini Phadnis

NEW DELHI, June 22

INDIAN Airlines (IA) is hoping to end fiscal 2001-02 with a marginal loss or may break even, according to senior airline officials.

``Preliminary estimates for the current year based on market-share and seat factor trends indicate that IA will end fiscal 2001-02 with only a marginal loss. Actually depending on how the market grows, IA may even be able to break even,'' IA sources told Business Line.

The airline registered a seat factor of 67 per cent this May, which is almost 3 per cent over the previous corresponding period. However, the domestic air travel market for the first four months grew only by 1.4 per cent.

The airline's optimism also stems from the fact that it has been able to report a lower net loss of 17.75 crore during April 2001 as against a budgeted net loss of Rs 26.30 crore. Besides, there has been a significant improvement in the load and seat fac tors of the airline. While the former went up from 66 per cent during 1999-2000 to 67.5 per cent in 2000-01, the latter went up to 65.7 per cent during 2000-01 from 64 per cent previously.

The sources said IA's decision to go in for a flexi-fare module, which saw fares being increased on 58 of the 165 domestic routes operated by the airline, and to induct more capacity through the leasing route were likely to contribute significantly to re versing its fortunes.

IA has already floated tenders for dry-lease of four Airbus A-320 aircraft. The tenders for dry-lease of six ATR aircraft is expected shortly, the sources added.

Meanwhile, after nearly a decade, IA has recruited 60 trainee pilots to ensure that there is no shortage of manpower when the airline inducts additional capacity.