Summary Air India's net loss narrowed to 53.8 billion rupees ($894 million) in the financial year to March.
NEW DELHI (AFP) - State-run carrier Air India has pared its losses thanks to a better all-round performance, but the new right-wing government has no plans to privatise the flagship airline, a statement said.
Air India, once the country s monopoly airline, now holds just 20 percent of the passenger market as once-loyal travellers fly nimbler private-sector rivals in the midst of cut-throat price wars.
Air India s net loss narrowed to 53.8 billion rupees ($894 million) in the financial year to March 31, from a loss of 54.9 billion rupees a year earlier, junior civil aviation minister G.M. Siddeswara told parliament in a statement late Tuesday.
Siddeswara added that there were no plans to sell off Air India "under consideration", despite proposals by Prime Minister Narendra Modi s government to increase privatisation revenues generally to cut a yawning fiscal deficit.
Analysts have long cited Air India as a problem for the government which is dependent on taxpayer funds.
Showing a strong improvement, the airline s operating loss narrowed to 21.20 billion rupees from 38 billion rupees in 2012-13 and 51.40 billion rupees in 2011-2012.
The operating result gives the clearest guide to performance, showing operating expenses against sales revenue, stripping out one-off income or spending.
All but one of India s main half-dozen carriers, Indigo, are losing money, smarting from fare rivalry, high fuel costs and hefty debts.
The government in 2012 gave the carrier a $5.85-billion bailout package.
Air India, which hasn t reported an annual profit since 2007, has "shown improvement in its financial parameters" since the government bailout, the minister said.
Air India has been keen to improve its reputation after a string of recent technical glitches, including last weekend when an India-bound flight from New Jersey in the US was forced to return when an engine caught fire.
