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Air India operating profit rises to Rs 300 crore in 2016-17; employees may be offered VRS

Even when Air India has been put up for sale, the airline’s operating profit rose to Rs 300 crore in 2016-17. Its net loss after tax has also reduced to Rs 3,643 crore. The information was provided today by the central government. As per provisional figures provided by the Minister of State for Civil Aviation Jayant Sinha to the Rajya Sabha today, Air India’s total revenue increased to 22,146 crore in 2016 -17. In the year-ago period, Air India’s revenue was Rs 20,524.56 crore. Sinha also said that Air India’s total debt at the end of March 2017 was Rs 48,876.81 crore.

In another related news, sources have revealed that Air India is planning to launch Voluntary Retirement Scheme (VRS) for its employees. It is expected that around one-third of its 40,000 employees will be offered VRS. The plan is to reduce costs ahead of its sale in 2018. Sources have also revealed that Air India has put on hold its fleet expansion plans to reduce capital expenditure. The entire cost cutting is being done since the government is no longer interested in providing financial assistance to the loss-making public sector company.

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