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Air India gives celebrates success with employee bonus
Posted on: 26/Oct/2016 4:35:03 PM
With marginal improvement in financial terms, the state-run Air India has offered small bonuses to its employees for this Diwali. In a letter to all its employees, the director of Air India, Vinod Hejmadi stated that this bonus is a token of appreciation for all the efforts the employees have invested in the airline for achieving the level of profit in 2015-16.
This release should however not to be considered as improvement in liquidity position of Air India. The airline will keep continuing the need for wholehearted support in the coming months as well, especially when both domestic as well as international market are getting expanded with the induction of A320neos and B787 aircraft.
Air India has 135 aircraft fleet of which 15 percent are used for domestic market share and 17 percent has international market share.
The operating profit is Rs 105 crore in the fiscal year 2015-16, says Hejmadi. This is set to be the starting point of actual turnaround and higher profit levels can be achieved in the years to come. At the same time, the road to wrap up turnaround is still a long way to go as the net loss incurred is Rs 3,897 crore in 2015-16 because of the interest burden the company bears on debts. Cash crush is still prevailing and depends on government for equity support for meeting the operational commitments.
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