Question : CUT IN EXPENDITURE



(a) whether Air India and Indian Airlines have followed the directives of the Government to cut expenditure and adopt austerity measures;

(b) if so, the details thereof; and

(c) the result achieved during the last year?

Answer given by the minister

MINISTER OF STATE IN THE MINISTRY OF CIVIL AVIATION ( SHRI SHRIPAD YESSO NAIK )

(a) and (b) :- Both Air India and Indian Airlines have implemented austerity measures and steps to cut expenditure. The measures taken by Air India include abolition of vacant posts, lowering of retirement age, downsizing or closing of foreign stations, reduction in agency commission etc. Similarly, the measures taken by Indian Airlines include freeze on recruitment, reduction in overtime payment, fuel tankering, saving in material consumption, reduction in retirement age etc.

(c): As a result, Air India and Indian Airlines have saved Rs. 23.68 crores and Rs. 73 crores respectively during the year 2001-2002.