It seems that amidst tough financial situations, the closure of Jet Airways might have really helped Air India in gaining some revenue from its international operations. As per an ET report on the matter, Air India’s revenue soared by 20% in the international market owing to the closure of Jet Airways in the first eight months. This is a good gain when compared to the single-digit percentage rise, which Air India had made last year in the same case.
International Front Grows Strong for Air India
A senior Air India official has also remarked on the situation saying, “The increase in numbers is despite the closure of Pakistani airspace, which impacted not only our international operations but that of all carriers using that route.” To recall, back in February 2019, Pakistan had closed its air space for the flights after IAF bombed a terrorist camp in Balakot. The total dent to the revenue of airlines amounted to be approximately Rs 700 crore. Out of this total amount, the Rs 400 crore figure was borne by Air India only.
Air India Registers Good Growth
The growth on the domestic front was not as impressive as on the international front for Air India, as the airline faced competition from other domestic carriers like IndiGo, and Vistara. Air India’s total revenue from both international and domestic passengers went up by 16.4% to Rs 15,056 crore in the April-November 2019 period from the previous figure of Rs 12,936 crore a year which was the recorded figure, the same time last year. While revenue from international flights rose 19.9% to Rs 9,859 crore from Rs 8,220 crore, domestic revenue rose by 10% to Rs 5,197 crore.
Government to Sell Air India
Even with these positive figures, Air India remains under troubled finances. The airline is losing around Rs 20 crore to Rs 26 crore per day and has a debt of Rs 80,000 crore on its shoulder to pay off. The government, is preparing to sell the entire stake in the airline by March 2020.
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