(a) whether the Air India has incurred losses during 1997-98, 1998-99, 1999-2000;
(b) if so, the details thereof alongwith the reasons therefor;
(c) the measures taken by the Government in this regard;
(d) whether the Air India does not provide the Standard facilities as provided by other aviation companies during their international flights; and
(e) if so, the steps taken to upgrade the facilities?
THE MINISTER OF CIVIL AVIATION
(SHRI SHARAD YADAV)
(a), (b), (c), (d) and (e):- A statement is laid on the
Table of the House.
STATEMENT IN REPLY TO LOK SABHA STARRED QUESTION NO.386 FOR
20.04.2000
REGARDING LOSSES INCURRED BY AIR INDIA.
(a) and (b):- Yes, Sir. The details of losses incurred by Air
India during the last 3 years are as under :-
1997-98 Rs.181.01 crores
1998-99 Rs.174.48 crores
1999-00 Rs.089.75 crores (provisional)
The losses are due to increase in expenditure on account of
interest and depreciation on new aircraft, reduction in yield
due to increased discounting in the market and cost of operations,
increase in wage bill and other staff costs and landing, handling
and navigational charges, depreciation of rupee value, etc.
(c):- Air India has taken following steps to improve its
financial performance:-
(i) Marketing efforts have been stepped up to generate
additional revenue;
(ii) Network rationalization and consolidation with emphasis placed on route profitability;
(iii) Reduction in expenditure on outside repairs of
aircraft by undertaking more in-house repairs;
(iv) Several posts of India based officers abroad have been abolished;
(v) Two voluntary schemes have been notifed viz. shorter working
week scheme and leave without pay/allowances scheme for a
period of two years extendable upto five years;
(vi) Rolling back of retirement age from 60 to 58 years.
(d) & (e):- Air India constantly endeavours to provide facilities
at par with foreign airlines and other aviation companies during
their international flights. Air India has been offering several
products to their passengers in line with their competitors; such as
(i) Separate Check-in counters for all class passengers.
(ii) Facility of Tele check-in for First class passengers.
(iii) Facility of pre-selecting a seat.
(iv) Facility of through check-in on code-share flights.
(v) Facility of worldwide baggage tracing service.
(vi) Compensation of lost/damaged baggage in line with the
leading airlines of the world.
(vii) Computerised check-in at most Indian Airports.
(viii) Selection of meals through internet.
(ix) On time arrival and departure status and a host of
other facilities through internet.
(x) On time arrival and departure in comparison with international
standards.
(xi) Flying Returns Programme to secure continued patronage
of travellers.
(xii) The Maharajah Club/Leading Edge Club in order to increase
AI`s share of the high yield First and Executive class market.