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

Representative image.

Representative image.

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.

  • PTI
  • Last Updated: March 25, 2020, 3:09 PM IST
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Air India is expected to incur losses to the tune of Rs 30-35 crore per day following the suspension of operations in the wake of coronavirus pandemic, according to a source. With stringent border controls across the countries to restrict the 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 30-35 crore. Though there will not be certain costs such as fuel, ground handling, and airport fee during the suspension of operations, we still will have to make payments towards salaries and allowances, lease rentals, minimum maintenance, besides the interest payment, among 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 expenses too are in the same range. So we are earnings before interest, taxes, depreciation, and amortization (EBITDA) positive or in a way meeting our all expenses."

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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