AIR INDIA SWUNG firmly back into the red in the first half of its financial year, and losses could rise higher depending on the outcome of wage negotiations with pilots and ground engineers.
First-half losses of $23 million are expected to double when the airline reports for its full year to March 1996. New wage agreements and proposals to ground engineers and technicians, expected to cost $15 million, could add to the deficit.
The airline, which turned in profits of more than $100 million three years ago, has steadily seen its profitability eroded by rising costs and tougher competition. In the last financial year it made only $13 million.
India's state-owned domestic carrier Indian Airlines has also revealed a $63 million net loss for the 1994/5 financial year, although the result is an improvement over the $86 million lost the year before.
Managing director PC Sen. adds that the airline turned around its operating loss during the year to show a modest $12 million profit.
Source: Flight International
