Lok Sabha Question No. 3203 (UNSTARRED), answered on 2016-08-04
Subject: Performance of Air India
Ministry: CIVIL AVIATION
Asked by: SUDHEER GUPTA, KONAKALLA NARAYANA RAO, KUNWAR HARIBANSH SINGH, ASHOK SHANKARRAO CHAVAN, SUNIL BALIRAM GAIKWAD, VIJAY KUMAR S.R., GAJANAN CHANDRAKANT KIRTIKAR, GOPALAKRISHNAN CHINNARAJ, P. C. MOHAN

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

UNSTARRED QUESTION NO. : 3203 (To be answered on the August 2016) 4th

## PERFORMANCE OF AIR INDIA

3203.

SHRI SUDHEER GUPTA ".  SHRI KONAKALLA NARAYANA RAO KUNWAR HARIBANSH SINGH SHRI ASHOK SHANKARRAO CHAVAN DR. SUNIL BALIRAM GAIKWAD SHRI S.R VIJAYAKUMAR SHRI GAJANAN KIRTIKAR DR C. GOPALAKRISHNAN SHRI P.C. MOHAN

## Will the Minister of CIVIL AVIA TION

:

be pleased to state:-

- (a) whether the Government held meeting recently to review the functioning of Air India and if s0, the details and the outcome thereof;
- (b) whether the Government has made comparison of the performance of Air India with other domestic airlines and if sO, the details thereof;
- (c) whether the Government is aware about lack %f synergy among staffespecially among pilots which is hurting the performance of Air India at all levels and if s0, the details thereof;
- (d) the details of profit/loss incurred by various airlines including Air India due tovarious reasons including natural calamities during the last three years and the current year, airlinelyear-wise;
- (e) the compensation to the passengers due to cancellation of flights due to various reasons including natural calamities during the above period yearwise; and paid
- (f) the steps taken/being taken by the Government to increase market share 0f Air India in domestic and international market as well as improve its financial performance by reducing losses in various segments of the company?

## ANSWER

Minister of State in the Ministry of CIVIL AVIATION

: .

(Shri Jayant Sinha)

- (a): Periodical meetings are held between the Ministry and Air India(AD) wherein the performance of the company is   regularly monitored and reviewed
- (b): Madam: No,

'

- (c): No,Madam: No such lack 0f synergy among staff, which is hurting performance of Air India has come to the knowledge 0f the Ministry:
- (d): No such information is available
- (e): The Ministry does not maintain such data: However, the expenses incurred by Air india towards hotel accommodation, catering and transport facilities provided to passengers effected by delayed/cancelled flights for the last three is as under: years
- (0) As a part of the Turnaround strategy for Air India Ltd, the company with the overall support of the Govt has initiated & number of steps in order to cut costs and losses These steps inter-alia include the following:
- (i) Setting up a Route Rationalization Committee to ensure revenue maximization by continuously looking at load factors, revenue yields and competitor fare structure and responding immediately to the same;
- (iii) Induction of brand new aircraft on several domestic international routes to increase passenger appeal;
- (ii) Joining of Star Alliance:
- (iv) Phasing out & grounding of old fleet;
- (vi) Up-gradation of IT infrastructure & implementation of Quick Win IT Solutions;
- (v) Leveraging the assets of the Company to increase MRO revenue and revenue from Company'$ real estate properties;
- (vii) introduction of PSS (Passenger Services System) to have a single code and SAP ERP based Solutions;
- (ix) Operationalization of Subsidiary Companies such as AIATSL & AIESL and transfer of manpower and equipment and treating them as Independent Profit Centers;
- (viii) Establishment of Integrated Operations Control Centre and Hub Control Centre in Delhi;

Year

Amount (Rs Crores)

2013-14

63.64

2014-15

77.44

2015-16 (Prov)

75.53

To increase the market share the followings steps have been taken by Air India:

- () Introduction of new routes;
- (iii) Joining of Star Alliance; -
- () Progressive induction of B 787 aircraft o AIs International routes;
- (iv) Induction of brand new aircraft on several domestic international routes to increase passenger appeal;
- (vi) Spot fare to last minute passengers by utilising the vacant inventorytap
- (v) Improved in flight services;