AI set to record Rs 21-cr profit

Our Bureau

NEW DELHI, Nov. 12

AIR India (AI), which has recorded a net profit of Rs 12 crore in the first six months of the current fiscal, hopes to end the year with a net profit of around Rs 21 crore, the airline board was informed today. The board, which met here, reviewed the status of leasing of up to four Airbus A-310-300 aircraft. Sources said the decision on how many aircraft the airline would lease had been left to the airline management.

The airline also hoped to record an operating profit of around Rs 10 crore during the next six months, thereby ending the year with a net profit of around Rs 21 crore, sources said.

On the leasing front, sources said though the airline could lease up to four Airbus aircraft, it was likely to lease three Airbus A-310-300 aircraft if the lease rentals were attractive. ``However, it is possible that AI leases only one A-310-300 aircraft so that the airline can tide over its immediate problems,'' the sources said. The issue of phasing out of the older Airbus 300 aircraft was also discussed.

The airline had recently received tenders for dry leasing of up to four Airbus A-310 aircraft for a period of up to three years. The airline is said to have received bids from at least four parties including the Turkish Airlines and the leasing arm of Rolls Royce -- Pembroke.

The board was also informed that the passenger loads of the airline was beginning to look up. ``While the passenger loads began to pick up between October 20-31, the smart recovery was during the period 1-10 November,'' the sources said.

Official sources, while refusing to disclose figures of the airlines earnings, indicated that AI non-operating revenues were higher than its operating revenues during the period under review. However, officials sought to justify this saying that the airline had managed to report profits despite the September 11 incidents.