Air India future in doubt as auditors’ report raises concerns
Air India, which finally turned a profit last year after at least 8 years of pre-tax losses, was revealed last month by the country’s auditor to have understated its operating losses by INR64.2b (US$964m) between 2012 and 2015. In a sharply worded report, India’s comptroller and auditor general said that the carrier had failed to meet targets on selling assets, forcing it to take on costly short-term loans that have “largely eroded” the benefits of a INR422b bailout in 2012. The rebuke, which came less than a year after Air India returned to profitability, has raised concerns about the airline’s future. In the face of stiff competition from no-frills airlines, high operating costs and govt pressure on routes and fares, analysts say that India’s cost-conscious airline industry will in future be dominated by budget carriers. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-04-06/star/air-india-future-in-doubt-as-auditors2019-report-raises-concerns
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Air India future in doubt as auditors’ report raises concerns
Air India, which finally turned a profit last year after at least 8 years of pre-tax losses, was revealed last month by the country’s auditor to have understated its operating losses by INR64.2b (US$964m) between 2012 and 2015. In a sharply worded report, India’s comptroller and auditor general said that the carrier had failed to meet targets on selling assets, forcing it to take on costly short-term loans that have “largely eroded” the benefits of a INR422b bailout in 2012. The rebuke, which came less than a year after Air India returned to profitability, has raised concerns about the airline’s future. In the face of stiff competition from no-frills airlines, high operating costs and govt pressure on routes and fares, analysts say that India’s cost-conscious airline industry will in future be dominated by budget carriers. <br/>
