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2000-01 loss lowest in six years, says Air-India

State-run Air-India, which the government aims to privatise this year, said on Wednesday it posted a provisional net loss of Rs 285 million in the year to March 31, its lowest in six years.

The figure was also nearly Rs 100 million lower than the net loss of Rs 380 million forecast by Air India just before the close of the financial year in March and the airline said its audited results could show it back in the black.

An airline spokesman said, "various subsequent calculations" had cut the loss which was expected to fall further when results were audited in July. "We may even wipe out the loss," he said.

The profit announcement came as the airline said the government had suspended Air-India's managing director, Michael Mascrenhas . It gave no reason for the suspension.

Mascrenhas had held the post of managing director of Air India for three years and was keenly in favour of the airline's privatisation.

New Delhi has received two bids -- one from Singapore Airlines, bidding in tandem with Tata group, and another from the UK-based billionaire Hinduja brothers -- for 40 per cent of Air India.

The two consortiums have finished performing due diligence on the airline and the government is expected to call for price bids any time now.

Ahead of the sale, the airline is taking steps to trim its bloated payroll, raise cash to pay down debt and expand its fleet and number of routes.

Air-India said its provisional results for 2000-01 (April-March) showed it had achieved an 11 per cent increase in revenue, and the highest-ever passenger loads in its history.

Its revenue climbed to Rs 51.80 billion in 2000-01 from Rs 46.62 billion.

"Major factors that helped the airline achieve this turnaround was the attainment of 74.1 per cent passenger load factor -- the highest in the history of Air-India", an airline statement said.

Air-India plans to add two second-hand Airbus A310s to its 25-aircraft fleet by next month. But its staff numbers, an issue which is bound to cause concern for the future part-owner of Air-India, stand at 17,185. This means it employs 680 people per aircraft compared with an airline industry norm of 350.

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