In A much improved performance from the previous year, Indian Airlines has substantially brought down its losses this financial year with the figure pegged at Rs 41.25 crore compared to a net loss of Rs 196.5 crore in 2002-03.The Indian Airlines Board which met today and approved its revised estimates for the current fiscal, noted a better performance in operations. The operating profit is expected to be around Rs 15.25 crore.During this financial year, the airline rationalised some of its flights by splitting up hopping flights and instead opting for direct connections. While direct connection have been provided to stations like Vadodara and Rajkot from Mumbai, independent connections have been provided from Mumbai and Delhi to stations like Lucknow and Varanasi on a daily basis.Indian Airlines had been incurring losses for past three years largely due to the massive hike in the price of aviation turbine fuel since September 2000. ATF prices maintained an upward trend with 9/11 and the Iraq War making matters worse for the industry. The ATF cost in India was at its peak in March 2003 at Rs 25,200 per kilo litre, exactly up by Rs 10,000 per kilo litre since March 2000.However, Indian Airlines benefited from the improving health of the economy in general this financial year while at the same time concentrating on cutting down expenditure internally.The national carrier expects the prositive trend to continue, projecting a Rs 16.5 crore operating profit in 2004-05. According to officials, there has been a general rise in passenger traffic throughout the past year which has only helped the airline tide over its heavy losses. Moreover, the recent government thrust on reforms in this sector by way of slashing Inland Air Travel Tax among other far reaching steps have also had their impact though analysts feel the effect will be more visible next year.The airline also plans to induct more aircrafts into its fleet by June 2004 through the dry leasing route while its proposal for purchasing 43 new aircrafts is still pending with the Government.
