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IA asked to consider leasing of 50-seater planes

Indian Airlines, which has suffered an estimated net loss of Rs 1.77 billion in 2000-01, has been asked by the civil aviation ministry to consider leasing 50-seater turboprop aircraft to connect feeder routes and tourist destinations.

This was disclosed by Civil Aviation Minister Sharad Yadav at the parliamentary consultative committee meeting held in Manali.

The minister, while stating that developed communication and navigation facilities would be installed in Bhuntar airport near Kullu by next year, said a plan to resurface and extend the runway there by diverting river Beas would be taken up soon at a cost of Rs 320 million, an official media release said.

IA, the meeting was informed, had suffered a net loss of Rs 1.77 billion in the last fiscal as against a profit of Rs 2.875 billion in the previous year.

These losses were primarily due to a hike in input cost like increase in sales tax on aviation turbine fuel, rise in the landing and navigation charges and additional expenditure on sky marshals which amounted to an additional burden of over Rs 3 billion.

On the other hand, the financial performance of IA was "steadily improving" with operating revenue showing a 12.3 per cent growth from Rs 38.964 billion in the last fiscal to Rs 43.77 billion this year.

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