AIR INDIA is expected to incur losses to the tune of Rs 300-350 million per day following the suspension of operations in the wake of coronavirus pandemic, sources said.
With stringent border controls across the countries to restrict movement of people, many countries have barred international flights in their territory amid COVID-19.
India has also announced a temporary ban on flying. “We will not be operating a single commercial flight along with other domestic carriers as per the government’s order, yet our daily losses will still be in the range of Rs 350 million.
“Though there will not be ceratin costs such as fuel, ground handling, airport fee during the suspension of oprations, we still will have to make payments towards salaries and allowances, lease rentals, mimimum maintenance, besides the interest payment, among others,” reports said.
Air India’s total earnings per day are around Rs 600-650 million and 90 per cent of this comes from passenger revenue.
AirIndia’s salary bill stands at around Rs 2.5 billion per month while the aircraft lease rentals outgo is around $30 million per month.
The airline has 21 Boeing B787-800s on lease in addition to 27 Airbus A320Neo planes.
The lease rental for each Boeing 787 is $1 million per months and $400 per month for an A20Neo, report said. ,
Besides the airline has to make as much as Rs 2.25 billion per month towards interest on borrowings among others.