Lok Sabha Question No. 80 (STARRED), answered on 2020-02-06
Subject: Upgradation of  Air  Tickets
Ministry: CIVIL AVIATION
Asked by: Rahul Ramesh Shewale

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

(To be answered on the 6th February 2020)

STARRED QUESTION NO: : 80

## UPGRADATION OF AIR TICKETS

*80.

SHRI RAHUL RAMESH SHEWALE

## Will the Minister of CIVIL AVIA TION

be pleased to state:-

- (a) the criteria/norms being followed by Air India in upgradation of tickets of the passengers;
- (b) the number of tickets upgraded and revenue generated therefrom by Air India across the country during each of the last three years and the current year;
- (c) whether the Government has received complaints for violation of the said criterialnorms during the above period and if the details thereof with the present status of such complaints; along SO,
- (d) whether the VIPs are given priority by Air India in such upgradation of tickets and if the details thereof and if not; the reasons therefor; and SO,
- (e) the other steps taken by the Government to increase revenue and profitability of Air India?

## ANSWER

Minister of State (IC) in the Ministry of CIVIL AVIATION

(Shri Hardeep Singh Puri)

(a) to (e) A statement is laid on the Table of the House:

STATEMENT IN REPLY TO PARTs (A); (B), (C), (D) AND (E) OF LOK SABHA STARRED QUESTION NO.80 TO BE ANSWERED ON 06.02.2020 REGARDING UPGRADATION OF AIR TICKETS TABLED BY SHRI RAHUL RAMESH SHEWALE, HON'BLE MP.

- (a) Up-gradation of air tickets are carried out by Air India under the following circumstances:
- i. On payment of the prescribed amount by the passenger at the airport
- ii. In overbooked flights; some economy class tickets are upgraded to higher classes
- iii. Upgrades are done on commercial considerations

These up-grades are done subject to availability %f higher class seats and payment of the prescribed amount by the passengers opting for up-gradation; where ever applicable:

- (b): The details regarding the number of paid upgrades and revenue generated therefrom by Air India across the country during each of the last three years and the current year are as follows
- (c) Criteria and norms for up-gradation of tickets are commercial business decision of Air India and Government has not issued any direction for the same: Further, CVC had referred a complaint to Air India in May 2018 regarding irregularities on Up-gradation of tickets between January, 2014 and 2014. A Special Investigation Team (SIT) consisting of three CVOs was also constituted by CVC in December, 2018 which submitted its report to CVC in January, 2019. In the report, it was found out that there were some cases of Up-gradations which were done by the check-in staff without assigning any reasons. For the remaining cases, they were found to be justified as they had been done on the basis of over-bookings, upfront "p-gradation scheme and authorized upgrades as per policy. May,

| Financial Year              |   Number of Upgrade | Revenue (Rs: in crores)   |
|-----------------------------|---------------------|---------------------------|
| 2016-17                     |               36513 |                           |
| 2017-18                     |               55370 | 111.57                    |
| 2018-19                     |               74340 | 183.37                    |
| 2019-20(till December 2019) |               70097 | 118.74                    |

The report of SIT was accepted by CVC in 2019. May,

Thereafter Air India has taken measure to maintain complete transparency and strict adherence of the laid down Standard Operating Procedure by one and all in up-gradation of seats.

- (d) The upgrades are done subject to availability of seats in the higher class. The upgrade at the airport are done on First Come First Served Basis when the passengers present themselves at the check-in counter.
- (e) The Government is committed to the disinvestment of Air India: In order to effectively prepare Air India for disinvestment, the Government prepared a plan to bring operational and financial efficiency in Air India: This Plan focuses on the financial and operational efficiencies so that substantial increase in revenue or cost saving could be achieved: Also, operational and financial performance parameters and milestones as fixed by the Government are regularly being reviewed.