New Delhi: Indian Airlines hopes to break even this fiscal, backed by better revenue and cost-cutting efforts, its chairman Sunil Arora said today (November 4).

"We hope to break even this fiscal. Last fiscal, the airline incurred a loss of Rs 245 crore," Arora said on the sidelines of the launch of a co-branded flyers' card.

IA reduced losses by 20 per cent to an estimated Rs 44.65 crore in the first quarter of this fiscal year compared to a net loss of Rs 58.02 crore in April-June 2002, mainly through aggressive marketing and promotional activities.

Arora attributed the loss of last fiscal to higher fuel prices coupled with 26 per cent sales tax imposed by States and 16 per cent excise duty.

"This year, things are looking better. Revenues are expected to improve while we are trying to reduce the costs as well," he said.

The airline plans to acquire 42 aircrafts for over Rs 10,000 crore.

Arora said the proposal was submitted to the Government last year. He declined to give a timeframe in which the acquisition of aircrafts would take place.

PTI