Air India's plans to grow its maintenance, repair and overhaul (MRO) business faces a big risk as it faces a severe shortage of aircraft engineers.

Air India hived off its engineering department into a separate unit last January to tap business from other airlines. Primarily, it still caters to Air India's aircraft maintenance but aims to double its third party business to Rs 130 crore in FY 17.

For the first time in a decade, Air India has reported an operating profit of Rs 105 crore in the last fiscal aided by lower fuel costs and rise in passenger numbers. The state-owned airline, which is working on ways to improve its financials, had an operating loss of Rs 2,636 crore in 2014-15.

During its meeting on Friday, the Air India board approved the financial numbers for 2015-16 and the carrier has reported an operating profit of Rs 105 crore, sources said.

State-owned carrier Air India has reduced its aircraft-related loans by `6,000 crore, which now stand at `14,000 crore against `20,000 crore at the end of FY16. Airline officials told FE that the airline paid back `6,000 crore of bridge loans recently from the proceeds of sale and lease-back of its nine Dreamliner aircraft, which was conducted at the end of August.

Two years after government-owned Air India (AI) walked out of the Federation of Indian Airlines (FIA), citing differences in opinion, it has approached the lobby group to return, said three sources.

They say chairman Ashwini Lohani feels it will give more muscle to AI's demands when it approaches the government as part of a group. FIA is now a lobby group of the country’s private airlines, which presses for change in public policy and regulations.

Air India expects the 40-odd new airplanes it will induct over two years to help it regain the domestic market share it lost to private players.

The national carrier plans to order 10 Airbus 320s to increase capacity, in addition to the 30 it has ordered from the European plane maker. The airline plans to increase its fleet size by 30-40 in two to three years.

National carrier Air India expects the 40 odd new airplanes that it plans to induct over the next two years would help regain lost market share in the domestic market against private players such as IndiGo and Spicejet.

It plans fresh orders of 10 Airbus 320 aircraft to increase capacity, in addition to the 30 aircraft from the European plane maker it has placed orders with.

The fight over advertisement between Air India and IndiGo has reached the civil aviation ministry, with top ministry officials asking both the airlines to not indulge in mudslinging and remove the hoardings targeted at each other. However, the 'ceasefire' did not last long with IndiGo putting an advertisement display on Friday at city's Chhatrapati Shivaji International Airport (CSIA).

The ongoing ad war between national carrier Air India and top low-cost carrier IndiGo is taking new turn everyday with both sides leaving no opportunity to take potshots at each other.

In the latest, Aditya Ghosh, President at InterGlobe Aviation that runs IndiGo, on Wednesday tweeted that his airline is the first to start an international flight from Chandigarh.

A sharp drop in domestic yield (average revenue per passenger) resulted in Air India posting Rs 246 crore operating loss in first quarter of FY 17 on a year-on-year basis.

The loss was however lower compared to Rs 316 crore in same period last year.

New Delhi: Air India Ltd has objected to an advertising campaign by rival IndiGo airline at the Mumbai airport and has asked the airport authorities to take it down.

Air India had recently placed billboards at Mumbai airport including where IndiGo passengers check in that said: Wish you a comfortable flight. Next time fly Air India and feel the difference. The billboard talked about more leg space, hot meals and extra baggage space that the airline provides.

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