Air India's net loss stands at around Rs 2,570 crore in Q1 of 2020-21: Puri

Air India has incurred a net loss of about Rs 2,570 crore in first quarter of 2020-21 as compared to a net loss of Rs 785 crore sustained in corresponding period a year ago, Civil Aviation Minister Hardeep Singh Puri said on Thursday.

An amount of Rs 1,000 crore as loan to Air India has also been provided in current financial year, Puri stated.

"Air India Limited has been suffering continuous losses. COVID-19 pandemic along with its related impact on aviation industry has furr worsened financial position of company," Puri said in a written reply to a question in Lok Sabha.

net loss in quarter 1 of FY20-21 is about Rs 2,570 crore as compared to loss of Rs 785 crore in quarter 1 of FY 19-20,ded Puri.

In a written reply to ar question in Lok Sabha, Puri said airline has discontinued post-retirement contracts of 61 retired pilots in view of company's financial condition.

Since July last year, a total of 50 Air India pilots submitted ir resignations and started serving tice period. However, y subsequently requested to withdraw ir resignations.

"In view of financial condition of company, a conscious decision was taken in August 2020 by Air India Limited to accept resignation of all such pilots who h earlier resigned and subsequently requested for withdrawal of ir resignations," ded Puri.

India's largest airline, IndiGo in month of July h declared a net loss of Rs 2,884.3 crore for first quarter of 2020-21. At present, airline has a total share of around 60 per cent in domestic air passenger market. aviation sector has been significantly impacted due to travel restrictions imposed in India and or countries in view of Coronavirus pandemic.

All airlines in India have taken cost-cutting measures such as pay cuts, leave without pay or firings of employees in order to conserve cash. 

(Im Credits:Twitter/HardeepSPuri)