Lok Sabha Question No. 3900 (UNSTARRED), answered on 2016-12-08
Subject: Performance of Air India
Ministry: CIVIL AVIATION
Asked by: MANSHANKAR NINAMA, BHARAT SINGH, RAMESH POKHRIYAL NISHANK, RABINDRA KUMAR JENA

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

UNSTARRED QUESTION NO. 8 3900 (To be answered on the December 2016)

## PERFORMANCE OF AIR INDIA

3900.

SHRI MANSHANKAR NINAMA SHRI BHARAT SINGH DR RAMESH POKHRIYAL NISHANK SHRI RABINDRA KUMAR JENA

Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) whether the Ministry is aware that out of 40 posts in present Air India, only 2 posts are from former Air India and the are from former Indian Airlines, if the details thereof; top rest
- (b) whether the Ministry is also aware that promotions have been given to the officials of former Indian Airlines who were junior in the seniority list; if s0, the details thereof;
- (c) whether the Ministry is aware that anomalies in terms of qualification, responsibility and work performance in human resource sector of Air India has been causing losses for years;
- (d) if the steps taken by Air India during the last two years to augment work performance; reduce over staffing; make the staff more professional and to boost their morale;
- (e) the impact of the merger of erstwhile Air India and erstwhile Indian Airlines in terms of operating ratio, net profits, loans and debts;
- the market share of erstwhile Air India and erstwhile Indian Airlines in the aviation industry before and after the merger; and
- (g) the total assets and liabilities 0f Air India at present and the steps taken by the Government to improve the performance of Air India?

## ANSWER

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Minister of CIVIL AVIATION

- (2) to (c): Out of 19 Executive Directors in Air India Limited 12 are from erstwhile Indian Airlines and 07 are from erstwhile Air India Further, out of 04 CEOs %f subsidiaries of Air India Limited, 03 are from erstwhile Air India and 01 is from erstwhile Indian Airlines.

Consequent to the merger of Air India & Indian Airlines, a Committee under the Chairmanship % Retd' Justice Dharmadhikari was appointecebytee government to look into the harmonization Of wage; salary, seniority, career progression etc\_ of all categories of employees of both the erstwhile implemented W.e.f: 01.07.2012. The promotions have been granted to the employees from the date it was due to them as per policies.

- ddin Financial Year 2015-16, trainings have been conducted/ arranged on all programme) at Corporate and Regional Level. from 01.01.2015 till ticcraft employee ratio and revenue per employee has also shown g positive trend. In order to have the objective assessment, responsibility and work Performance in human resource sector of Air India, Performance Indicators/ Performance Areas have been defined and communicated to Air India staff: Also, date, Key Key

(e) Air India immediately after the merger in 2007-08 had been acute liquidity problems to losses on account of a multitude of factors which were impacting the entire aviation industry aS a whole facing leading

However the company has been constantly improving its operational and financial performance since the implementation of Turnaround Plaon(TAP) AI has made substantial improvements in both its financial as well The Net Losses of the company have been consistently going dowp since t&ce has also improved from 135.02% to 99.47% on account 0f which the has posted an Operating Profit of Rs 105 crores in 2015-16. company

The total outstanding loans on Air India as on 3Oth September 2016 are Rs 46570.35 crores,

(9) The merger of Air India and Indian Airlines was effective from 2007 . August;

Market Share of Air India in 2006-07

(before merger)

8 14.75 % (International)

Market Share of Air India 2007-08 (after merger)

11.8 % (International)

Market Share of Indian Airlines in 2006-07

(before merger)

17.37 % (Domestic)

Market Share of Indian Airlines in 2007-08

(after merger) 15.55 % (Domestic)

- (9)The Gross value %f the Fixed assets (including company as on 31st March 2016 are Rs 46,074.67 surplus assets) of the term borrowings/liabilities are Rs 35806.38 crores; whereas the crores. long

Govt: has already\_approved a Turnaround Plan (TAP)/ Restructuring Plan (FRP) for Air India in the year 2012 for Financial financial turnaround of Air India. The TAPIFRE operational and operational parameters The TAPIFRP includes certain financial and support for the\_payment of principallinterest and also equity Debentures: Air India Ltd is of the Non Convertible fronts since the implementation of TAPIFRP