Lok Sabha Question No. 898 (UNSTARRED), answered on 2015-12-03
Subject: Losses Suffered by Airline Industry
Ministry: CIVIL AVIATION
Asked by: B.N. CHANDRAPPA, NALIN KUMAR KATEEL, MD. BADARIDDOZA KHAN, DODDAALAHALLI KEMPEGOWDA SURESH, ELUMALAI VELLAIGOUNDER

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA UNSTARRED

NO. 898 (To be answered on the December 2015)

## LOSSES SUFFERED BY AIRLINE INDUSTRY

898.

SHRI BN. CHANDRAPPA SHRI NALIN KUMAR KATEEL SHRI MD. BADARUDDOZA KHAN SHRI DK SURESH SHRI ELUMALAI V.

## Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) whether Airline industry including Air India is reportedly incurring loses in the recent years; huge

(c) the steps taken/proposed to be taken by the Government to bring about a turnaround in the airline industry of the country?

- (b) if s0, the details thereof and the reasons therefor indicating the financial conditions of various airlines including Indigo and Air India and the details 0f the losses suffered during the last three years and the current year; airlinelyear-wise; and

## ANSWER

Minister Of State in the Ministry of CIVIL AVIATION

(Dr Mahesh Sharma)

{2 &e b) Directorate General of Civil Aviation has not conducted any study in this regard: However, Airlines are free to assess their financial status including Air India. Statement 0f Financial Summary Of Scheduled Indian Carriers during the last three years is enclosed herewith as Annexure-1

() Rationalization of certain loss making routes

(c) The Cabinet Committee of Economic Affairs (CCEA) in its meeting held on 12.04.2012, approved a Turnaround Plan (TAP) Financial Restructuring Plan (FRP) for operational and financial turnaround of Air India (Af) subject to achievement Of certain laid down milestones by AI As part of the TAPIFRP, AI has initiated, inter-alia, the following steps in order to cut costs:-

(i) Induction of brand new aircraft on several domestic & international routes to increase Passenger appeal

(v) Establishment Of Integrated Operations Control Center and Hub Control Center in Delhi Freezing %f employment in non-operational areas.

(iii) Phasing out & grounding of old fleet

((vi) Operationalization of Subsidiary Companies such as Air India Air Transport Services Limited and Air India Engineering Services Limited and transfer 0f manpower and equipment and treating them as Independent Profit Centers and

(vii) Induction of the B787 aircraft o Medium Capacity Haul Routes. Long

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| NAME OF THE AIRLINE                                                                             | OPERATING REVENUE                                                                               | 2011-12 OPERATING EXPENSES                                                                      | OPERATING RESULT                                                                                | OPERATING                                                                                       | 2012-13 OPERATING                                                                               | OPERATING                                                                                       |                                                                                                 | 2013-14                                                                                         | (RS_ IN MILLION}:                                                                               |
|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|
| NATIONAL REVENUE EXPENSES RESULT OPERATING OPERATING OPERATING CARRIERS REVENUE EXPENSES RESULT | NATIONAL REVENUE EXPENSES RESULT OPERATING OPERATING OPERATING CARRIERS REVENUE EXPENSES RESULT | NATIONAL REVENUE EXPENSES RESULT OPERATING OPERATING OPERATING CARRIERS REVENUE EXPENSES RESULT | NATIONAL REVENUE EXPENSES RESULT OPERATING OPERATING OPERATING CARRIERS REVENUE EXPENSES RESULT | NATIONAL REVENUE EXPENSES RESULT OPERATING OPERATING OPERATING CARRIERS REVENUE EXPENSES RESULT | NATIONAL REVENUE EXPENSES RESULT OPERATING OPERATING OPERATING CARRIERS REVENUE EXPENSES RESULT | NATIONAL REVENUE EXPENSES RESULT OPERATING OPERATING OPERATING CARRIERS REVENUE EXPENSES RESULT | NATIONAL REVENUE EXPENSES RESULT OPERATING OPERATING OPERATING CARRIERS REVENUE EXPENSES RESULT | NATIONAL REVENUE EXPENSES RESULT OPERATING OPERATING OPERATING CARRIERS REVENUE EXPENSES RESULT | NATIONAL REVENUE EXPENSES RESULT OPERATING OPERATING OPERATING CARRIERS REVENUE EXPENSES RESULT |
| AIR INDIA                                                                                       | 1.47,138                                                                                        | 1,98,140                                                                                        | ~51,001.8                                                                                       | 1,60.721.1                                                                                      | 1.98,349.9                                                                                      | 37828.8                                                                                         |                                                                                                 |                                                                                                 |                                                                                                 |
| AIR INDIA EXPRESS                                                                               | 13,778                                                                                          | 17,004                                                                                          | 3,225.3                                                                                         | 15,510.4                                                                                        | 16,892.3                                                                                        |                                                                                                 | 1,90,934.9,                                                                                     | 2.23,488,5                                                                                      | 332553.6                                                                                        |
| ALLIANCE AIR                                                                                    | 2.952                                                                                           | 4,102                                                                                           | -1,150.2                                                                                        | 2811.4                                                                                          | 4132.6                                                                                          |                                                                                                 | 20,696                                                                                          | 19.968.4                                                                                        | 727.7                                                                                           |
| TOTAL                                                                                           | 1,63,868                                                                                        | 2,19,246                                                                                        |                                                                                                 | 1,79,142.9                                                                                      | 2,19,374.8                                                                                      |                                                                                                 |                                                                                                 | 4.178.2                                                                                         |                                                                                                 |
| PRIVATE SCHEDUKED DOMESTIC 2,14,054.9 2,47,635.1 33580.2 AiRLINES                               | PRIVATE SCHEDUKED DOMESTIC 2,14,054.9 2,47,635.1 33580.2 AiRLINES                               | PRIVATE SCHEDUKED DOMESTIC 2,14,054.9 2,47,635.1 33580.2 AiRLINES                               | PRIVATE SCHEDUKED DOMESTIC 2,14,054.9 2,47,635.1 33580.2 AiRLINES                               | PRIVATE SCHEDUKED DOMESTIC 2,14,054.9 2,47,635.1 33580.2 AiRLINES                               | PRIVATE SCHEDUKED DOMESTIC 2,14,054.9 2,47,635.1 33580.2 AiRLINES                               | PRIVATE SCHEDUKED DOMESTIC 2,14,054.9 2,47,635.1 33580.2 AiRLINES                               | PRIVATE SCHEDUKED DOMESTIC 2,14,054.9 2,47,635.1 33580.2 AiRLINES                               | PRIVATE SCHEDUKED DOMESTIC 2,14,054.9 2,47,635.1 33580.2 AiRLINES                               | PRIVATE SCHEDUKED DOMESTIC 2,14,054.9 2,47,635.1 33580.2 AiRLINES                               |
| JET AIRWAYS                                                                                     | 1,47,860                                                                                        | 1,54,407                                                                                        |                                                                                                 |                                                                                                 |                                                                                                 |                                                                                                 |                                                                                                 |                                                                                                 |                                                                                                 |
| JETLITE (P) LTD_                                                                                | 18,732                                                                                          | 21,617                                                                                          |                                                                                                 | 1,70,916.3                                                                                      | 1.69,590.5                                                                                      | 1225.8                                                                                          | 1.72.325.                                                                                       | 2.01,072.5                                                                                      | 228747.5                                                                                        |
| GO AIR                                                                                          | 15,634                                                                                          | 16,380                                                                                          | -746.5                                                                                          | 19,806.7                                                                                        | 22.274.7                                                                                        | 22468.0                                                                                         | 16,909.9                                                                                        | 21,456.0                                                                                        | 4546.0                                                                                          |
| SPICEJET                                                                                        | 39.433                                                                                          | 45,726                                                                                          | -6,293.7                                                                                        |                                                                                                 | 21,408.4                                                                                        | 851.0                                                                                           | 25,323.8                                                                                        | 24,226.8                                                                                        | 1097.0                                                                                          |
| INDIGO                                                                                          | 55,524                                                                                          | 56,401                                                                                          | 876.8                                                                                           | 56.006.8                                                                                        | 58,805.0                                                                                        |                                                                                                 | 63,042.3                                                                                        | 73,036.8                                                                                        | -9994.5                                                                                         |
| AIR COSTA*                                                                                      |                                                                                                 |                                                                                                 |                                                                                                 | 92,030.8                                                                                        | 84.072.9                                                                                        | 7957.9                                                                                          | 1,11,165.8                                                                                      | 1,08,466.9                                                                                      | 2698.9                                                                                          |
| TOTAL                                                                                           | 2,77,182                                                                                        | 2,94,532                                                                                        | -17,350.1                                                                                       | 3,61,019.9                                                                                      |                                                                                                 |                                                                                                 | 511.0                                                                                           | 1,206.6                                                                                         | -695.5                                                                                          |
| GRAND TOTAL                                                                                     | 4,41,050                                                                                        | 5,13,778                                                                                        | 72,727.4                                                                                        | 5,40,162,8                                                                                      | 3,56,251.4 5,75,626.2                                                                           | 4,768.5 35,463.43                                                                               | 3,88,767.0                                                                                      | 4,28,259.0                                                                                      | 39492.0                                                                                         |

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