Coronavirus Effect: Air India to Incur Rs 30-35 Crore Loss Per Day Due to Flight Suspension

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Air India is anticipated to incur losses to the tune of Rs 30-35 crore per day following the suspension of operations within the wake of coronavirus pandemic, based on a supply. With stringent border controls throughout the nations to limit the motion of individuals, many nations have barred worldwide flights of their territory amid COVID-19. India has additionally introduced a brief ban on flying.

“We won’t be working a single business flight together with different home carriers as per the federal government’s order, but our each day losses will nonetheless be within the vary of Rs 30-35 crore. Though there won’t make sure prices akin to gas, floor dealing with, and airport price in the course of the suspension of operations, we nonetheless must make funds in direction of salaries and allowances, lease leases, minimal upkeep, apart from the curiosity cost, amongst others,” the source told PTI.

Air India’s total earnings per day are around Rs 60-65 crore and 90 per cent of this comes from passenger revenue, he said adding, “The bills too are in the identical vary. So we’re earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) constructive or in a means assembly our all bills.”

Air India’s salary bill stands at around Rs 250 crore per month while the aircraft lease rentals outgo is around USD 30 million per month as per the source. The airline has 21 Boeing B787-800s on lease in addition to 27 Airbus A320Neo planes. The lease rental for each Boeing 787 is USD 1 million per month and USD 400 per month for an A320Neo, as per the source. Besides, the airline has to make as much as Rs 225 crore per months towards interest on borrowings among others.

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