For the first time since merger of Air India and Indian Airlines in 2007, Air India has recorded a cash surplus of Rs 48 crore during the April-July 2012, versus a deficit of Rs 586 crore during the same period last year. This turnaround came with the airline increasing its revenue to Rs 4,757 crore during April-August, a 6.5% jump from the corresponding period in 2011.
And, this period saw the expenditure being reduced by Rs 268 crore. The cash flow rose mainly with revenue on domestic network increasing by 33% in April to August to Rs 2,119 crore, up by Rs 531crore from the same period in the previous year.
The improved operational performance comes on back of several tough measures that aviation minister Ajit Singh directed the airline to take. In what was unthinkable till some years back, the airline has shifted the base of 60 pilots from Mumbai to Delhi as the airline’s new hub is the capital’s Terminal 3.