Lok Sabha Question No. 2055 (UNSTARRED), answered on 2017-07-27
Subject: Performance of Air India
Ministry: CIVIL AVIATION
Asked by: RAKESH SINGH, ASADUDDIN OWAISI, ADVOCATE NARENDRA KESHAV SAWAIKAR, BALABHADRA MAJHI

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

UNSTARRED QUESTION NO. 2055 (To be answered on the July 2017)

## PERFORMANCE OF AIR INDIA

2055\_

SHRI RAKESH SINGH SHRI ASADUDDIN OWAISI ADV NARENDRA KESHAV SAWAIKAR SHRI BALABHADRA MAJHI

Will the Minister of CIVIL AVIATION

be pleased to state: -

- (a) the total amount so far pumped by Government in Air India during the last three years to make it functional;
- (c) whether the Government has asked the NITI Aayog to draw a roadmap for ailing Air India and if the details thereof; SO,
- (b) whether in spite of that Air India is continuously incurring losses and if so,the reasons therefor;
- (d) whether NITI Aayog has submitted its recommendations to the Government and if s0, the details thereof and strategy likely to be adopted by the Government for the future of Air India;
- the details of the physical and financial performance of Air India and its subsidiaries during the last three years; and
- (e) the details of subsidiaries of Air India together with the functions;
- (g) the market share of Air India during the said period?

## ANSWER

Minister of State in the Ministry of CIVIL AVIATION

(Shri Jayant Sinha)

(a):The Equity Infusion received by Air India Ltd. from the Govt: under the Turnaround Plan approved the government for the last three years is as under: by

2016-17:

Rs. 2465.21 crores

2015-16:

2014-15:

Rs: 5780 crores:

of the Turnaround Plan; has been constantly improving its operational as well as financial performance. In the Financiai Year 2013-16, the company has

'

.

' '

posted an Operating Profit of Rs.105 crores In the Financial Year 2016-17

(e): The details of subsidiaries of Air India together with the functions, are available at Annexure-[

also the company has been steadily improving its all round performance: (c) & (d): NITI Aayog submitted 2017, its recommendations (fourth tranche on strategic disinvestment of CPSE\_ NITI Aayog has recommended disinvestment of Air India and five of its subsidiaries and suggested the mode of strategic disinvestment and the method 0f valuation of the company and its subsidiaries. The recommendations of NITI Aayog were placed before the Core Group of Secretaries on Disinvestment (CGD)\_for consideration and making recommendations for a decision of CCEA The recommendaticns of CGD; based on the report of NITI Aayog; were placed before the Cabinet Committee 0n Affairs (CCEA) for consideration. The Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 28.06.2017,has given in-principle approval for considering strategic disinvestment of Air India and its five subsidiaries and constitution of Air India Specific Alternative Mechanism which will decide the course of further action. May,

(f): The details of the physical and financial performance of Air India and its subsidiaries during the last three years are available at Annexure-2\_

(g): The domestic market share of Air India in the last 03 years is following:

2014-15 17.9%

2015-16 15.9%/

2016-17 14.2%

'

The following are the wholly owned subsidiaries of Air India Ltd.

## Air India Air Transport Services Ltd: (AIATSL):

- Air India Express Ltd: (AIEL):

A wholly owned subsidiary of Air India presently provides ground handling services at 67 Airports in India.

A wholly owned subsidiary of Air India operates international stations in Gulf, Middle East and South East Asia\_

A wholly owned subsidiary of Air India has bases at Delhi, Mumbai, Hyderabad, Trivandrum, Nagpur and Kolkata for  carrying out the Maintenance, Repair and Overhaul (MRO) activities for various types f Airbus and Boeing fleet

- Air India Engineering Services Ltd: (AIESL):

## Airline Allied Services Limited(AASL):

- Hotel Corporation of India Limited (HCI): HCI has four Units viz. Centaur Hotel, Delhi, Chefair Delhi, Chefair Flight Catering, Mumbai and Centaur Late View Hotel, Srinagar.

A wholly owned subsidiary of Air India Ltd , which operates under the brand name Alliance Air provides connectivity to Tier II and Tier III cities and acts as a feeder to Air India and Air India Express:

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## AIR INDIA LIMITED

(Rs.In Crores)

| Financial Performance   | 2013-14 Actuals   | 2014-15 Actuals   | 2015-16 Actuals   | 2016-17 (Prov}   |
|-------------------------|-------------------|-------------------|-------------------|------------------|
| Operating Revenue       | 18370.96          | 19801.71          | 19992.33          | 21919.00         |
| Operating Expenses      | 22348.85          | 22437.89          | 19887.33          | 21704.00         |
| Operating Profit/(loss) | (3977.89)         | (2636.18)         | 105.00            | 215.00           |
| Total Revenue           | 19093.49          | 20613.16          | 20526.12          | 22436.00         |
| Total Expenses          | 26420.19          | 26466.17          | 24361.33          | 25789.00         |
| Before Tax              | . (6279.60)       | (5859.90)         | (3836.78)         | (3728.00)        |

| Operational Performance                   |   2013-14 Actuals |   2014-15 Actuals |   2015-16 Actuals |   2016-17 RE |
|-------------------------------------------|-------------------|-------------------|-------------------|--------------|
| ASKms (Million)                           |          45428    |          48859.1  |          51208    |     54090    |
|                                           |          33279    |          35999.8  |          38694    |     41344    |
| RPKms (Million)                           |             73.3  |             73.7  |             75.6  |        76.4  |
| Passenger LF (%)                          |             15.43 |             16.88 |             18    |        19.12 |
| No. of Rev Passengers Yield Per RPKM (Rs) |              4.25 |              4.39 |              4.05 |         3.86 |

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Air India Express

| Physical Parameters        | Physical Parameters   | Physical Parameters   | Physical Parameters   |
|----------------------------|-----------------------|-----------------------|-----------------------|
| Year                       | 2014-15 (Actual)      | 2015-16 (Actual)      | 2016-17 (Actual)      |
| ASK - Million              | 8161                  | 8730                  | 11574                 |
| RPK- Million               | 6639                  | 7189                  | 8786                  |
| PLF %                      | 81.4%                 | 82.3%                 | 75.9%                 |
| Passengers- Million        | 2.64                  | 2.80                  | 3.42                  |
| Yield/ RPK-Rs              | 3.82                  | 3.84                  | 3.79                  |
| Fleet                      | 17                    | 17                    | 21                    |
| Arcft Utilization/Hrs. Day | 10.8                  | 11.3                  | 12.20                 |
| Flying Hours               | 66621                 | 70385                 | 94055                 |

| Financial Parameters   | Financial Parameters   | Financial Parameters   | Financial Parameters   |
|------------------------|------------------------|------------------------|------------------------|
| (Rs: In Crores)        | 2014-15 (Actual)       | 2015-16 (Actual)       | 2016-17 (Actual)       |
| Operating Revenue      | 2,618                  | 2910                   | 3330                   |
| Operating Expenses_    | 2,287                  | 2228                   | 2765                   |
| Operating Profit       | 331                    | 682                    | 565                    |
| Total Revenue          | 2,622.0                | 2918                   | 3356                   |
| Total Expenses         | 2,683.1                | 4556                   | 3059                   |
| Net Profit             | 61.0                   | 362                    | 297                    |
| EBIDTA                 | 569                    | 930                    | 884                    |

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## Airline Allied Services Limited

## Financial Performance (in Rs. Crores)

|   SLNo | Particulars                                      |   2016-17 (Revised Estimates) |   2015-16 (Actuals) |   2014-15 (Actuals) |
|--------|--------------------------------------------------|-------------------------------|---------------------|---------------------|
|      1 | Operating Profit/ Loss                           |                         72.59 |               93.96 |              118.9  |
|      2 | Total Revenue                                    |                        373.8  |              273.86 |              227.95 |
|      3 | Total Expenses                                   |                        573.8  |              473.48 |              402.3  |
|      4 | Net Profit (Loss) Before Tax                     |                        200.01 |              199.62 |              174.35 |
|      5 | Net Profit (Loss) After Tax & Prior Period items |                        200.01 |              198.75 |              183.93 |

## Physical Performance

|    | Seat Factor (%)                                                        | 69.9 %   | 66.5 %   | 68.3 %   |
|----|------------------------------------------------------------------------|----------|----------|----------|
| 2  | Passengers Revenue per RPKM (Paise)                                    | 10.04    | 9.00     | 9.00     |
| 3  | Yield per Passenger (Rs.)                                              | 5172     | 5746     | 5746     |
|    | Operating Ratio (Ratio of Operating Expenses to Operating Revenue) (%) | 119.4%   | 135.0 %  | 166.1 %  |

## Air India Air Transport Services Ltd:

| The details of the Physical and financial performance of AIATSL during the last three years   | The details of the Physical and financial performance of AIATSL during the last three years   | The details of the Physical and financial performance of AIATSL during the last three years   | The details of the Physical and financial performance of AIATSL during the last three years   | The details of the Physical and financial performance of AIATSL during the last three years   |
|-----------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|
| Financial Year                                                                                | Manpower Data                                                                                 | Procurement of Capital Item                                                                   | Total Revenue                                                                                 | Profit before Tax                                                                             |
| 2014-15                                                                                       | 8563                                                                                          | Rs.69 Lakhs                                                                                   | 647.01 Crores                                                                                 | 103.75 Crores                                                                                 |
| 2015 16                                                                                       | 9001                                                                                          | Rs.3.85 Lakhs                                                                                 | 636.90 Crores                                                                                 | 104.77 Crores                                                                                 |
| 2016 17                                                                                       | 11526                                                                                         | Rs.67.87 Cr.                                                                                  | 659.00 Crores' (Budget Estimates)                                                             | 105.00 Crores (Budget Estinates)                                                              |

.

## HOTEL CORPORATION OF INDIA LTD.

## Consolidated Profitability Statement for Last 3 Years (Rs. In Lacs)

| Particulars                         | 2014-15   | 2015-16   | 2016-17   |
|-------------------------------------|-----------|-----------|-----------|
| Total Income                        | 5,285.88  | 4,751.29  | 5,430.00  |
| Total Expenditure                   | 8,419.95  | 8,175.45  | 8,210.00  |
| NET (Profit/Loss)                   |           | 5,704.93  | 4,200.00  |
| Net (Profit/Loss) after adjustments | 5,045.91  | 5,775.67  | 4,200.00  |

| Physical Performance   | Physical Performance   | Physical Performance   | Physical Performance   |
|------------------------|------------------------|------------------------|------------------------|
| Food Cost %            | 38                     | 44                     | 33                     |
| Room nights sold       | 71,509                 |                        | 58,360                 |
| uplifted               | 8,03,000               | 9,85,500               | 10,95,000              |
| No. of Flights Catered | 6,200                  | 6,662                  | 7,000                  |

## AIR INDIA ENGINEERING SERVICES LIMITED

| Financial Perforrance        | 2014-15   | 2015-16   | 2016-17     |
|------------------------------|-----------|-----------|-------------|
|                              | Actuals   | Actuals   | Provisional |
| Servicing Revenue            | 142.00    | 620.27    | 716.37      |
| Other Revenue                |           |           |             |
| Total revenue                | 142.00    | 620.27    | 716.37      |
| Total Expenses               | 384.57    | 1178.89   | 1369.15     |
| Profit/ (Loss)               | (242.57)  | (558.62)  | (652.78)    |
| Exceptional Items            |           |           |             |
| Net Profit/(Loss) before Tax | (242.57)  | (558.62)  | (652.78)    |
| Provision for Tax            |           |           |             |
| Net Profit/ (Loss) after Tax | (242.57)  | (558.62)  | (652.78)    |

Physical Parameters-AIESL

| 2014-15                | 2014-15   | 2014-15     | 2014-15         | 2015-16   | 2015-16     | 2015-16         | 2016-17   | 2016-17     | 2016-17         |
|------------------------|-----------|-------------|-----------------|-----------|-------------|-----------------|-----------|-------------|-----------------|
| Aircraft               | Block Hrs | Total Fleet | Operating Fleet | Block Hrs | Total Fleet | Operating Fleet | Block Hrs | Total Fleet | Operating Fleet |
| A319                   | 82759     | 22          | 19.45           | 78505     | 22          | 19.77           | 80007     | 22          | 19.77           |
| A320                   | 62219     | 17.8        | 13.90           | 69181     | 20.50       | 16.61           | 72419     | 19.4        | 17.37           |
| A321                   | 80029     | 20          | 17.46           | 81694     | 20          | 17.80           | 88365     | 20          | 19.06           |
| A330 (Upto 25/11/2014) | 2843      | 1.9         | 1.13            |           |             |                 |           |             |                 |
| B787                   | 75919     | 16.07       | 13.79           | 91583     | 20.7        | 17.22           | 101086    | 21.6        | 18.57           |
| 8777 300               | 53639     | 11.7        | 19.85           | 51739     | 12          | 19.77           | 51165     | 12          | 19.54           |
| B777-200               | 2357      | 3.2         | 0.83            | 7564      |             | 1.55            | 12570     | 3           | 2.35            |
| B747-400               | 4548      | 5           | 1.20            | 4343      |             | 1.20            | 4700      |             | 1.39            |