AIR INDIA

• Air India was founded by J.R.D Tata in 1932

• It is the 16th largest airline in Asia
• On 1august 1953 it was nationalised
• Air India is the only governmental air line in India
• Air India has code share with 13 other
internatinal airlines
• Air india and Indian Airlines amalgamated in
August 2007
• The entity is known as National Aviation
Company of India Limited
 Mar ' 06 Mar ' 05 Mar ' 04
Profit loss account

Income      

Operating income 8,833.71 7,588.17 5,987.98

Expenses      

Material consumed - - 279.79

Manufacturing expenses  5,067.63 3,920.38 3,725.96

Personnel expenses 1,244.37 1,182.03 1,112.38

Selling expenses 462.12 403.45 397.22

Adminstrative expenses 1,085.50 1,002.08 538.92

Expenses capitalised - - -

Cost of sales 7,859.62 6,507.94 5,657.05

Operating profit 974.09 1,080.23 330.93
Other recurring income 235.4 21.76 248.46
Adjusted PBDIT 1,209.49 1,101.99 579.39
Financial expenses 1,027.77 715.57 39.63
Depreciation  406.19 426.03 443.31
Other write offs 1.44 3.52 3.88
Adjusted PBT -225.91 -43.13 92.57
Tax charges  -2.51 -46.22 -77.94
Adjusted PAT -223.4 3.09 170.51
Non recurring items -9.97 -30.1 -78.18
Other non cash adjustments 248.31 123.37 -
Reported net profit 14.94 96.36 92.33
Earnigs before appropriation 94.05 96.36 92.33
Equity dividend - 15.38 -
Dividend tax - 1.57 -
Retained earnings 94.05 79.41 92.33
 Adminstrative expenses
Manufacturing expenses 

6,000.00

5,000.00
21%
4,000.00
41%
EXPENSE

3,000.00 Manufacturing expenses  Mar ' 06

Mar ' 05
2,000.00
Mar ' 04
1,000.00
38%
0.00
Mar ' 06 Mar ' 05 Mar ' 04
YEAR

Cost of sales
Selling expenses

Mar ' 04 Mar ' 04

480
462.12
460
440 Mar ' 05 Mar ' 05 Cost of sales
420
400 403.45 Selling expenses
397.22
380
360 Mar ' 06 Mar ' 06
Selling expenses
Mar ' 06
Mar ' 05
Mar ' 04
0.00 2,000.00 4,000.00 6,000.00 8,000.00 10,000.0
0
ANALYSIS OF FINANCIAL PERFORMANCE
• TOTAL REVENUE DECREASED TO 0.30% WHEREAS
EXPENDITURE INCREASES BY 6.91%
• SCHEDULE SERVICE REVENUE DECLINED BY 6%.
• OPERATING REVENUE DECLINED BY 34%.

PHYSICAL PARAMETERS
• PASSENGERS LOAD FACTOR FELL FROM 66.2% TO
63.8% WHERE OVERALL FALL OF 56.4% TO 53.5%.
• REVENUE PER RTKM WAS RS 26.80 AGAINST RS 26.78
AND OPERATING COST PER ATKM INCREASED FROM
RS 22.01.
REASONS FOR LOSS

• WAGE ARREARS
• OPERATING REVENUE DECREASED DUE TO FALL IN
LOAD FACTOR AND IN YIELD.
• ADDITIONAL INTERST BURDEN OF RS160 cr. WAS
INCURRED ON WORKING CAPITALIN ADDITION TO RS
174 CRORES INCURRED ON LOANS FOR ACQUISITION
OF AIRCRAFT.
• PASSENGER AMMENITIES, LEASING COSTS,
COMMUNICATION CHARGES CONTRIBUTED TO
ADDITIONAL EXPENSES OF RS 110 cr.
• THE SHARP INCREASE IN THE FUEL PRICES
INCLUDING A RISE IN THE AVERAGE PRICE OF JET
FUEL.