National carrier Air India, which is expected to post its highest ever annual loss in the recently concluded financial year 2018-19 (FY19), could break even at a net level for the first time in over a decade in the current financial year (FY20).
Aviation advisory firm CAPA in a recent report said that the favourable market conditions represent a unique opportunity for a structural reset of the national carrier, which Air India must take advantage of. While the domestic market will remain highly competitive, the international sector has the potential to be very positive, it said. With the suspension of Jet Airways’ operations, the state-run airline has emerged as the largest carrier on overseas routes — where capacity is constrained — and international operations could prove to be lucrative for the struggling company. The airline’s financials have also shown signs of improvement following Jet’s collapse.
