(a) whether Alliance Airlines make payments for the services rendered to it by the Indian Airlines;
(b) if so, the details thereof;
(c) whether the Alliance Airlines created parallel department to provide its own support system; and
(d) if so, the reasons and justification for such payments to Indian Airlines?
THE MINISTER OF CIVIL AVIATION (SHRI SHARAD YADAV)
(a): Yes, Sir.
(b): Indian Airlines transferred since April 1996, its
fleet of 12 Boeing 737 aircraft to Alliance Air. The
ownership of the aircraft remains with Indian Airlines and
aircraft are on lease to Alliance Air. There is a
Memorandum of Understanding signed between Indian Airlines
and Alliance Air with the approval of the Boards of two
airlines. This provides for payment of following charges by
Alliance Air to Indian Airlines:- 1. Lease charges 2.
Aircraft maintenance beyond flight release certificate. 3.
Sale of tickets, other marketing and commercial support
including reimbursement of commission paid by Indian Airline
to travel agents. 4. Passenger reservation. 5. Ground
handling 6. Pilots and other training. 7. Reimbursement
of salaries and allowances of manpower on deputation to
Alliance Air.
Alliance Air has a total staff strength of 681 employees of
which 79 are on deputation from Indian Airlines. The
Managing Director and other senior management personnel are
also on deputation from Indian Airlines.
The maintenance of Alliance Air is supervised by Engineers
of Indian Airlines. 10 Engineers are on deputation from
Indian Airlines to Alliance Air.
Indian Airlines has also sent on deputation 17 Pilots to
Alliance Air.
All other costs of operations are borne by Alliance Air.
(c): Alliance Air utilises the services of Indian Airlines
for all activities except those that are essential for it
to be a scheduled airline or to comply with requirements of
Companies Act for it to be an autonomous company.
Accordingly Alliance Air carries out maintenance of aircraft
upto flight release, prepares flight plans, prepares its
accounts and maintains records of personel on its rolls.
Alliance Air has not created any parallel department for
services provided by Indian Airlines.
(d): Does not arise.