AIR INDIA

Air India

Module name

Student name

Student id

Introduction3

Literatrure Review4

Analysis & DIsucssion6

Ratio Analysis7

Liquidity Ratios7

Efficiency Ratios9

Profitability Ratios10

Gearing Ratios11

Vertical Analysis14

Horizontal Analysis17

Recommendations17

Conclusion18

Air India Real Time

Introduction

Air India is a multifaceted aviation company with in-house infrastructure for maintenance repair and overhauls (MRO) services; ground handling services; and cargo operations. The company offers its services with a network of 52 destinations across the US, Europe, Canada, Far East and South-East Asia, and the Gulf. Air India is owned by National Aviation Company of India (NACIL). The company primarily operates in India, where it is headquartered in Mumbai. The company operating profit was INR 34,720 million (approximately $732.9 million) in the fiscal year ended March 2010, a decrease of 38.8% compared to 2009. Its net profit was INR 55,510 million (approximately $1,171.8 million) in fiscal 2010, a decrease of 22.8% compared to 2009. Air India is facing a tight financial situation and is in talks with lenders to restructure its debt of Rs 40,000 crore (Air India, 2011). The lenders have agreed to reduce interest rates on the part of the debt that is linked to overseas borrowings. The future of the remaining debt is still uncertain, especially because lenders are seeking a conversion of their debt into equity or equity like instruments. Ideally, this should be at par, said a bank chief who is directly involved in the debt restructuring. This is perhaps the first time that the national carrier has defaulted on its payments to banks. Sources said the airline had approached banks for more loans, but they have declined to help because of the airline's poor financial health.

The Context Of Your Chosen Organisation

Fastest means of transport is Air Transport. There are several favorable circumstances for the development of Air Transport in India. Credit goes to India for inaugurating the first Air Service Asia in 1914 by Post and Telegraph Department by carrying mail from Allahabad to Naini across the Ganga River. However, the real progress was made during World War II. In 1947, we had 27 airways companies in India and these covered a distance of about 22 crore kilometers on their scheduled flights and carried about 3 lakh passengers (Air India, 2011). Now they cover a distance of about 10 crore kilometers and carry more than 72 lakh passengers per year.

Literatrure Review

Financial plight was on the verge of national carrier Air India's nearly 31,500 workers will not get the salary of October. The company has no money to pay. That is why some financial institutions for loans, is being negotiated. According to the company official salaries, outstanding productivity linked Insetiv (PLI) and payment of other allowances for the financial institutions are trying to make some money. He said the money is coming from the company's internal resources; it is not possible to pay salary and arrears. 're Building confidence among employees, with additional loans from financial institutions for the upcoming November 10 has been set a target of paying it. The PLI and Flying Alounson workers the past two months have not been ...