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Rediff.com  » Business » India's airlines suffer Rs 4,000 cr loss in FY08

India's airlines suffer Rs 4,000 cr loss in FY08

June 04, 2008 16:44 IST
Airlines in India have suffered a staggering loss of Rs 4,000 crore (Rs 40 billion)  in 2007-08, and it could double in the current fiscal depending on which way fuel prices are headed, Civil Aviation Secretary Ashok Chawla said.

"Oil prices are at all-time high and airline operators are finding it difficult to make both ends meets. In fact there are substantial losses being reported by the airlines in India," he said

Chawla said in 2007-08 all airlines together reported a loss to the tune of Rs 4,000 crore and it could reach the double figure this fiscal depending upon the movement of oil prices.

"We have asked them for some more specific details which could be prepared as representation and would be submitted by the Civil Aviation Minister (Praful Patel) to the Prime Minister (Manmohan Singh) and the Finance Minister (P Chidambaram," he said.

Chawla said the Ministry would tell the Prime Minister and the Finance Minister the difficulties being faced and what could be the ways and means through which the government could provide relief to this key sector.

"The airlines have also assured that they will do everything possible to cut the cost and ensure that the burden to the passengers is kept to the minimum," he said.

Patel had said on Monday that the Ministry was "very concerned and unhappy", as rise in aviation turbine fuel (ATF) prices was playing havoc with the financial health of airlines.

"We will have to seek relief and take whatever remedial measures possible," he said.

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