Question : LOSS OF AIR TRAFFIC BY IA



(a) whether any recent review has been undertaken by the Government to assess the extent to which the Indian Airlines have been losing in passenger load factor to other airlines operating in the country;

(b) if so, the details thereof stating the extent of loss suffered by the Indian Airlines on this account during the last three years;

(c) the reasons for such losses; and

(d) the steps being taken by the Indian Airlines to compete with the Private Airlines and regain market share?

Answer given by the minister

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

(a),(b) and (c): The passenger load factor (seat factor) during the last three years is as under :-

Year	Indian Airlines	Jet Airways Sahara Airlines
2000 64.0% 71.8% 39.71% 2001 63.4% 63.1% 40.09% 2002 58.9% 61.6 51.70%


During the last few years, capacity induction has been much in excess of demand by the private airlines in domestic aviation market. This has led to a decline in seat factors for the industry as a whole. The induction of capacity by the private airlines, has led to decline in Indian Airlines capacity share and a consequent decline in seat factor and profitability.
The profit/(loss) of Indian Airlines for the last three years is given below :-	Years	Net Profit/(Loss) (Rs. in crores)
1999-2000 51.42 2000-2001 (159.17) 2001-2002 (246.75)

It is not possible to separately estimate the impact of variation in load factor (capacity utilisation) on the profitability of the Company as the operating margins are affected by a combination of factors such as increase in input prices, variation in revenue yields, capacity utilisation, utilisation of aircraft and others resources.

(d): Indian Airlines maintains its services competitively with other operators through introduction of promotional fares and by upgrading, as also adding value to its product.