(a) whether the Air India has reported huge losses during
2008-09 even as the airline appointed consulting firm Booz
Allen to formulate a plan to cut costs and enhance revenues;
(b) if so, the details thereof
(c) whether the factors attributed to the rise in losses of
Air India has been examined; and
(d) if so, the details thereof and the steps taken by the
Government to adopt cost cutting measures in Air India?
MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF CIVIL AVIATION
(SHRI PRAFUL PATEL)
(a) and (b): Air India is expected to incur a loss of
Rs.5,000 approximately (Prov.) during the year 2008-09. The
consulting firm Booz and Allen has not yet been appointed by Air India.
(c) and (d): The reasons for losses are mainly due to
prevalent economic recession and low yields and load
factors.NACIL has taken several initiatives to turnaround
the performance of the company focussing on Cost Reduction
and Revenue Enhancement.