National Aviation Company of India Ltd (NACIL), a government of India enterprise which operates countriy’s largest airline service, will get the first tranche of government funding in January 2010. The company is expecting around Rs 400 crore in this instalment.
NACIL is also putting in place a payment plan to clear the arrears to various vendors as it expects improved booking position for December, January and February, said the company in a statement.
NACIL stated that the enhanced carriage and higher load factor on account of improved on time performance and gradual deployment of new aircraft on various sectors has enabled it to achieve higher cash collections during this period. However, it added that the enhanced revenue is still not sufficient to meet all financial commitments.
It claims that the domestic market share of the company has increased to 17.5% and 18.6% in September and October this year respectively, up from 16.6% in August. The seat factor has also improved from 59.8% in August to 67.5% in September and 72.8% October.
