Lok Sabha Question No. 1178 (UNSTARRED), answered on 2016-03-03
Subject: Expenditure on Advertisements by Airlines
Ministry: CIVIL AVIATION
Asked by: SIRAJUDDIN AJMAL, OM BIRLA

1178.

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UNSTARRED QUESTION NO. : 1178

## GOVERNMENT OF INDIA

## LOK SABHA

(To be answered on the March 2016) 3rd

## EXPENDITURE ON ADVERTISEMENTS BY AIRLINES

SHRI SIRAJUDDIN AJMAL SHRI OM BIRLA .

Will the Minister of CIVIL AVIATION

be pleased to state: -

- (a) the total income earned and expenditure incurred by Indian Airlines, Air India and Pawan Hans, the Airport Authority of India and other PSUs under the Ministry during the last three years and the current year; (b) the total expenditure incurred by them on advertisements through print; electronic and other media during the said period;
- (d) the other measures being taken by the Government to bring the national carriers out of the loss;
- (c) the percentage of their total expenditure incurred on advertisement; services to passengers and raising infrastructure;
- (e) whether the advertising for Air India has been outsourced to an agency, if so, the details thereof; and
- (f) the tie-ups made by Air India for endorsements and the details of expenditure thereon?

## ANSWER

Minister of State in the Ministry of CIVIL AVIA TION

(Dr Mahesh Sharma)

(a) to (c): The details of total income earned and expenditure incurred Air India Limited; Pawan Hans and Airports Authority of India during the last three years and current year, total expenditure incurred by them on advertisements through print, electronic and other media and percentage of total expenditure incurred on advertisements, services to passengers and raising infrastructure are given at Annexure-A by

- (d): The Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 12.04.2012, approved

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 achieved most of the targets set out in the TAP milestones; and has made substantial progress in both operational as well as financial areas. upto

(e): The following four advertising agencies are empanelled with Air India to release advertisements.

- (ii) Crayons Advertising Pvt Ltd
- RK Swamy BBDO
- Graphisad Pvt Ltd
- (iv) Paramin Advertising & Marketing Associates

(f): Air India have used sports stars working with Air India for campaigns at no additional cost.

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) .

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Information in reply to Part (a) to (c) of Lok Sabha Unstarred Question No. 1178 for reply on 03.03.2016.

| AIR INDIA LTD               | AIR INDIA LTD                                                                    |                                                                                  | 2013-14                                                                          |                                                                                  | 2015-16 (Prov:                                                                   |
|-----------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|
| Particulars                 | Particulars                                                                      |                                                                                  |                                                                                  | 2014-15                                                                          |                                                                                  |
| Total incomne earned and    | Total incomne earned and                                                         | Total incomne earned and                                                         | Total incomne earned and                                                         | Total incomne earned and                                                         | Total incomne earned and                                                         |
| (a)                         |                                                                                  |                                                                                  | 20140.59                                                                         | 20606.27                                                                         | 14684.93                                                                         |
|                             | ZTotal Revenue                                                                   |                                                                                  |                                                                                  | 26466.18                                                                         | 17782.65                                                                         |
|                             | _@Total Expenses                                                                 | 23703.95                                                                         | 26420.19                                                                         |                                                                                  |                                                                                  |
| (b)                         | The total expenditure incurred on advertisements (Rs:In Crores) 14.23 23.00 7.62 | The total expenditure incurred on advertisements (Rs:In Crores) 14.23 23.00 7.62 | The total expenditure incurred on advertisements (Rs:In Crores) 14.23 23.00 7.62 | The total expenditure incurred on advertisements (Rs:In Crores) 14.23 23.00 7.62 | The total expenditure incurred on advertisements (Rs:In Crores) 14.23 23.00 7.62 |
| (c)                         | Advertiserent & Publicity Expenses                                               | 32.08                                                                            |                                                                                  | 0.09                                                                             | 0.04                                                                             |
|                             | Amenities Passenger                                                              | 0.14 2.05                                                                        | 0.05 2.29                                                                        | 2.73                                                                             | 2.69                                                                             |
|                             | (iii) Infrastructure                                                             | 17.28                                                                            | 17.20                                                                            | 20.85                                                                            | 6.60                                                                             |
| PAWAN HANS LIMITED          | PAWAN HANS LIMITED                                                               | PAWAN HANS LIMITED                                                               | PAWAN HANS LIMITED                                                               | PAWAN HANS LIMITED                                                               | PAWAN HANS LIMITED                                                               |
| (a)                         | Total icome earned and expenditure (Rs_in Crores)                                | Total icome earned and expenditure (Rs_in Crores)                                | Total icome earned and expenditure (Rs_in Crores)                                | Total icome earned and expenditure (Rs_in Crores)                                | Total icome earned and expenditure (Rs_in Crores)                                |
|                             |                                                                                  | 482.05                                                                           | 543.04                                                                           | 549.70                                                                           | 408.84                                                                           |
|                             | (@Iotal Expenses                                                                 | 454.11                                                                           | 488.35                                                                           | 476.51                                                                           | 355.37                                                                           |
| (b)                         | The total expenditure incurred on advertisements (Rscin Crores)                  | The total expenditure incurred on advertisements (Rscin Crores)                  | The total expenditure incurred on advertisements (Rscin Crores)                  | The total expenditure incurred on advertisements (Rscin Crores)                  | The total expenditure incurred on advertisements (Rscin Crores)                  |
|                             | Expenditure on Advertisements:                                                   | 1.10                                                                             | 0.48                                                                             | 0.48                                                                             | 0.15                                                                             |
| (c)                         | The percentage of total expenditure ncurred on advertisement; services to        | The percentage of total expenditure ncurred on advertisement; services to        | The percentage of total expenditure ncurred on advertisement; services to        | The percentage of total expenditure ncurred on advertisement; services to        | The percentage of total expenditure ncurred on advertisement; services to        |
|                             | % of Aclvert. To Total Expenditure                                               | 0.24%                                                                            | 0.10%                                                                            | 0.10%                                                                            | 0.04%                                                                            |
| AIRPORTS AUTHORITY OF_INDIA | AIRPORTS AUTHORITY OF_INDIA                                                      | AIRPORTS AUTHORITY OF_INDIA                                                      | AIRPORTS AUTHORITY OF_INDIA                                                      | AIRPORTS AUTHORITY OF_INDIA                                                      | AIRPORTS AUTHORITY OF_INDIA                                                      |
| (a)                         |                                                                                  | 6917.38                                                                          | 8170.04                                                                          | 9284.98                                                                          | 9701.52                                                                          |
|                             | Revenue                                                                          | 5580.18                                                                          | 5649.73                                                                          | 6493.57                                                                          | 7195.92                                                                          |
| (b)                         |                                                                                  |                                                                                  |                                                                                  |                                                                                  |                                                                                  |
|                             | Total expenditure cn Advt: & Publicity                                           | 4.30                                                                             | 12.28                                                                            | 11.94                                                                            | 13.00                                                                            |
| (c)                         | passengers and raising _infrastructure (Rsin crores):                            | passengers and raising _infrastructure (Rsin crores):                            | passengers and raising _infrastructure (Rsin crores):                            | passengers and raising _infrastructure (Rsin crores):                            | passengers and raising _infrastructure (Rsin crores):                            |
|                             | Expenditure incurred for                                                         | 1515.52                                                                          | 1752.28                                                                          | 1713.63                                                                          | 1624.37                                                                          |
|                             | passenger services Total expencliture                                            | 5580.18                                                                          | 5649.73                                                                          | 6493.57                                                                          | 7195.92                                                                          |
|                             | % of Passenger Arrienities Expenditure to total expenditure_                     | 27.16                                                                            | 31.02                                                                            | 26.39                                                                            | 22.57                                                                            |
|                             | expenditure incurred for raising Of Infrastructure                               | 1800.00                                                                          | 1158.00                                                                          | 1399.87                                                                          | 1900.00                                                                          |
|                             | %o of expenditure incurred for raising of infrastructure to total expenditure    | 32.26                                                                            | 20.50                                                                            | 21.56                                                                            | 26.40                                                                            |

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