Lok Sabha Question No. 1424 (UNSTARRED), answered on 2017-03-09
Subject: Air India Revenues
Ministry: CIVIL AVIATION
Asked by: K. MARAGATHAM

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA UNSTARRED QUESTIQN NO: 1424

8 (To be answered O the 9th March 2017)

## AIR INDIA REVENUES

## 1424. SHRIMATI K MARAGATHAM

## Will the Minister of CIVIL AVIATION

be pleased to state:-

- (0) whether Air India has reported better revenues for financial year 2016-17 o the back of better
- (6) whether one reason for an increase in the topline is the increase in the passenger load factor, if s0, the details thereof;
3. (c) whether due to the introduction of flights O routes like Delhi-San Francisco, the opposed to just three hours to that which wouid help in increasing the revenue; and prior
4. (d) if s0, the details thereof and the steps taken by the Government to improve the revenues of Air India?

## ANSWER

## Minister of State in the Ministry of CIVIL AVIATION

(Shri Jayant Sinha)

- (a) (b) Financiai Year 2016-17 when compared to FY 2015-16. In fact,the company is the previous year:

The main reason for this increase in revenues is an imprevement inocapacity utilization in terms of Revenue Passenger Kilometers (RPKMs) by 6.8% and a increase in Passenger Carriages by 6.3% when compared t0 the previous 2015-16. The Passenger Load Factor is also expected to increase by 1,2% in year

- was Bangalore ?Delhi- San Francisco route (Al-173/174} This has helped in increasing

operating utilization of B777-200 LR over 14 hours per from November; 2015 onward: day

- (d) Government had approved 4 Turnaround Plan (TAP) Financial Restructuring Plan (FRP) for operational and financial turnaround of Air India. The TAP/FRP provides equity infusion of Rs.30231 crores 2021 subject to achievement of certain milestones as laid down in the TAPIFRP. The Company has made substantial progress in both Operational as well as Financial Areas as per TAP Milestones. As a part of the Turnaround Strategy for Air India Ltd,, the company, with the overall support of the govt,, has initiated a number of steps in order to cut costs and losses. These inter-alia, include the following: upto
- i. Route rationalization of erstwhile Al & IA route and elimination of route network involving parallel operations:
- iii. Phasing out of old fleet and consequential reduction in maintenance cost.
- Rationalization of certain loss making routes:
- iv Joining of Star Alliance:
- vi: Closure of overscas offline offices at certain locations.
- V Enhanced utilization of new fleet resulting in production of higher Available Seat Kilometers (ASKMs):
- vii: Introduction of PSS (Passenger Service Systern) to have single code and SAP ERP based solutions throughout the organization in terms of increase in revenue and decrease in cost:

The following steps have also been taken by Air India to improve revenues:

- 1 Introduction of New Routes:
- iii Flash Sale of seats to increase revenues and PLF.
- ii Preferred seat selection on domestic and international routes.
- iv To utilize unsold inventoryllaunching 0f airfare equivalent to Rajdhani IIAC fare on select sectors.
- vi Various sales and Marketing Initiatives.
- V Dynamic pricing and introduction of Advance Purchase fare:

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