National carrier Air India is showing signs of improvement and is likely to do a financial turnaround by 2017, reveals the Economic Survey 2015. The study was released last week, a day ahead of the Union Budget.
The development comes close on the heels of the latest quarterly result of the airline, declaring a profit of Rs14.6 crore, riding on the falling aviation turbine fuel (ATF) prices – the rates have fallen by more than 50 per cent over the past year.
AI's total revenue rose by 6.5% to Rs2,070 crore during December 2014 as compared to Rs1,944 crore in the same period the previous year, an airline official said.
The survey revealed that during 2014-2015, the airline ferried about 169.47 lakh flyers, while 154.06 lakh passenger used the airline during the previous year.
The study also points out that 141.83 lakh, 134.30 lakh, 127.80 lakh, 117.50 lakh passengers travelled on Air India flights during 2013-14, 2012-13, 2011-2012, 2010-2011 and 2009-2010 respectively.
On the revenue front too, the airline has been witnessing consistent growth. As per data available with the government, its income rose to Rs418.8crore during 2014-15, as against Rs391crore a year ago. The fleet strength also has gone up to 99 from 93 in the previous two years.
Ever since the merger of its domestic and international operations in 2007, Air India has been reeling under huge losses. In April 2012, the government approved a turnaround plan through equity infusion of around Rs30,000crore into the airline till 2020, subject to it meeting certain milestones.
