CAPA upbeat of Air India being able to turnaround

Aug. 27, 2012

New Delhi: Civil aviation consultancy Centre for Asia Pacific Aviation (CAPA) is upbeat that Indian flag carrier Air India can make a turnaround considering its marked enhancements in its domestic operations, reports the Hindu. The consultancy believes that the carrier must be helped by the government in revamping the board as well as the management for achieving the desired objectives. CAPA, in its report said that Air India's domestic performance is moving towards a positive direction, which is likely to trigger an overall turnaround subject to the capitalization of the situation. The flag carrier should take advantage of the existing domestic market conditions and focus on its restructuring by further reducing its cost base, enhancing productivity and resolving its HR issues. The consultancy further said that it is the time for Air India for achieving a successful turnaround, but needs a board and management that can seize the opportunity. Subject to a strong performance in 2012-13, CAPA said that it believes that Air India may need to consider capacity expansion. Furthermore, on the basis of the performance in the quarter ended June 30, 2012 and subject to resolving issues with its pilots, robust results in the two forthcoming quarters could witness Air India's projected full-year loss for the current fiscal to fall from US$1.3 billion to just below US$1 billion, said CAPA.

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