Air-India expects 1.05 B net profit for 2002-03

Wednesday, 30 July 2003, 07:00 Hrs
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NEW DELHI: Air-India is expected to make a profit of 1.05 billion for fiscal 2002-03, aided by low interest rates and profits on sale of properties and aircraft, Civil Aviation Minister Rajiv Pratap Rudy said Tuesday.

"As per provisional results compiled for the period April-December 2002 and for the financial year 2002-03, Air India is expected to earn a net profit of approximately 650 million and 1.05 billion respectively," Rudy said in a written reply in the Rajya Sabha.

The national carrier has been in the red for the past several years. According to the budget approved by the Air-India board for fiscal 2003-2004, the company is expected to incur a loss of 555 million.

"Net results are different from operating results as they take into account non-operating performance as well," Rudy said.

Among the factors that contributed to non-operating profits in 2002-03 was "low finance or interest cost primarily due to reduction in interest rates in the international market".

Dividend of 200 million received from the wholly owned subsidiary company, Hotel Corporation of India, as profits on the sale of properties and a profit of about 170 million on the sale of three aircraft to Ariana Afghan Airlines also contributed to profits, Rudy said.

He said cancellation or withdrawal of flights due to SARS, resulting in a drop in traffic, and an agitation by pilots during April-May were among factors that would lead to the loss envisaged for 2003-2004.

Other factors contributing to losses included an increase in prices of aviation fuel and the recession in the world travel market.

Source: IANS
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