Lok Sabha Question No. 163 (STARRED), answered on 2015-12-10
Subject: Performance of Air India
Ministry: CIVIL AVIATION
Asked by: VIRENDRA  KUMAR, KRISHNAN NARAYANASAMY RAMACHANDRAN

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA STARRED QUESTIQN NO. : 163 December 2015)

(To be answered on the 10th

## PERFORMANCE OF AIR INDIA

## *163. DR VIRENDRA KUMAR

SHRI KN. RAMACHANDRAN

Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) the number of countries with which the Air India has air connectivity; countrywise;
- (b) whether the Government has assessed the impact of softening 0f interest regime and international of Aviation fuel on the revenue of the Air India, if s0, the details thereof; price
- (c) the revenue earned and expenditure incurred by Air India during each of the last three years and the current year, year-wise;
- (d) whether the Air India has set any targets to up its revenue generation for the current year and if the details thereof; and step SO,
- (e) whether the growth; market share, punctuality and other performance parameters 0f private carriers is far ahead of Air india and if corrective action taken by the Government to improve the overall performance of the Air India along with outcome thereof?

## ANSWER

(Shri Ashok Gajapathi Raju Pusapati)

Minister of CIVIL AVIATION

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

SABHA STARRED QUESTION NO.163 ANSWERED ON 10.12.2015 REGARDING PERFORMANCE OF AIR INDIA TABLED VIRENDRA KUMAR AND SHRI KN. RAMACHANDRAN, MPs .

- (@): Currently Air India connects 35 international destinations in 24 countries The details are at Annexure-I.
- (b): Softening of interest and international of fuel is expected to result in reduction of total expenditure %f Air India The softening 0f the Aeviation Fuel Prices has been considered while formulating the estimated budget for FY 2015-16. price regime
- (c): The details of the Total Revenue and Total Expenditure of Air India Ltd for the last three years, and current year are as under:
- (d): The revenue target for FY 2015-16 is Rs: 21,570 crores Introduction of additional flights, rationalization Of routes and better revenue management are likely to iead to increased revenues during the current year:
- (e): The data on Market Share, On Time Performance and Growth of Air India and other private airlines is at Annexure-II:

Particulars

(Rs: In Crores) 2012-13 2013-14 2014-15 2015-16(Prov:) (April-September,15)

Total Revenue 18213.79 20140.59 20606.27 9485.00 Total Expenses 23703.95 26420.19 26466.18 11776.19

In view of the losses suffered by Air India upto 2010-11 and its mounting debt burden, the CCEA in its meeting held O 12.04.2012, approved a Turnaround Plan(TAPY Financial Restructuring Plan(FRP) for operational and financial turnaround of Air India. The TAPIFRP provides equity infusion bytthe government % Rs30231 crores upto 2021 subiect to achievement gf certain Zinancial and operational parameters as laid down in the TAPMFRP

As a result of implementing TAP the company has made improvements in FY 2014-15(provisional results) in comparison to FY 2011-12 which are as under:

1. Improvements in Financial Performance
2. (ii) The Net Loss in 2014-15 is Rs.5859.91 crores as against the loss of Rs.7559.74 crores in 2011-12 i.e: a reduction by 22.5%
3. () The Operating Loss has consistently reduced since merger and in 2014-15 the same stands at Rs.2636.19 crores as compared to Rs.5138.69 crores in 2011-12\_
4. (ii) The Company has turned EBIDTA positive by Rs.337.77 crores as the negative EBIDTA of Rs.2236.95 crores in 2011-12. against
5. increased from Rs.14713,81 crores in 2011-12 to (iv) Total Revenue Rs.5892.46 crores i.e. by 40.1% as Rs.20606.27 crores in 2014-15 i.e: by compared to levels of 2011-12.
6. 2 Improvement in Operational Performance
7. has improved to 73.7% in 2014-15 from the (ii) The Passenger Load Factor Passenger Load Factor of 67.9% in 2011-12
8. in the OTP\_ The as compared to overali Network OTP achieved during 68.2% in 2011-12.

Tle Neowork Yield achieved is Rs.4.39/RPKM in 2014-15 as against (iii)

to 16.88 Million in 2014-15.

- 3 to ensure revenue (i) Setting up a Route Rationalization and maximization by continuously looking at load factors, revenue competitor fare structure: yields
- grounding of old fleet: Return of leased aircraft, freezing (iii)
- aircraft o several domestic international (ii) induction of brand new

(v) Up-gradation of IT Infrastructure Solutions

- Companies such as AIATSL & AIESL (vi) Operationalization of Subsidiary and treating them as Independent and transfer of manpower and equipment Profit Centers

Operations Control Centre and Hub Control (v) Establishment of Integrated Centre in Delhi

*#***

.

. .

## ANNEXURE-L

## AIR INDIAINTERNATIONAL DESTINATIONS

| SL No.   | Country              | City          |
|----------|----------------------|---------------|
| 1        | United States        | Newark        |
| 2        | United States        | New York      |
| 3        | United States        | Chicago_      |
|          | United States        | San Francisco |
|          | France               | Paris         |
|          | Germany              | Frankfurt     |
|          | Italy                | Rome          |
| 8        | Italy                | Milan         |
| 9        | Italy                | Birmingham    |
| 10       | United Kingdom       | London        |
| 11       | Russian Federation   | Moscow        |
| 12       | Bahrain              | Bahrain       |
| 13       | Kuwait               | Kuwait        |
| 14       | Oman                 | Muscat        |
| 15       | Saudi Arabia         | Dammam        |
| 16       | Saudi Arabia         | Jeddah        |
| 17       | Saudi Arabia         | Riyadh        |
| 18       | Saudi Arabia         | Abu Dhabi     |
| 19       | United Arab Emirates |               |
| 20       | United Arab Emirates | Dubai Sharjah |
| 21       | China                | Shanghai      |
| 22       | Hong Kong            | Hong Kong     |
| 23       | Japan                | Osaka         |
| 24       |                      | Tokyo         |
| 25       | South Korea          | Seoul         |
| 26       | Singapore            | Singapore     |
| 27       | Thailand             | Bangkok       |
| 28       | Afghanistan          | Kabul         |
| 29       | Bangladesh           | Dhaka         |
|          | Maldives             | Male          |
| 31       | Myanmar              | Yangon_       |
| 32       | Nepal                | Kathmandu     |
| 33       | Sri Lanka            | Colombo       |
| 34       |                      | Melbourne     |
| 35       | Australia            | Sydney        |

## ANNEXURE-IL

| Particulars      | Air India        | Indigo           | Spice Jet        | Jet Airways and Jet Lite   |
|------------------|------------------|------------------|------------------|----------------------------|
| OTP              | OTP              | OTP              | OTP              | OTP                        |
| 2013             |                  | 91.18            | 85.13            | 87.73                      |
| 2014             | 72.92            | 87.10            | 80.59            | 81.83                      |
| Market Share (%) | Market Share (%) | Market Share (%) | Market Share (%) | Market Share (%)           |
| 2013             | 19.4             | 28.9             | 19.0             | 24.2                       |
| 2014             | 18.4             | 31.8             | 17.4             | 21.7                       |

## Growth in terms of Passenger carried

| Particulars                                 |   Air India |   Private Airlines |
|---------------------------------------------|-------------|--------------------|
| % of growth during 2013 as compared to 2012 |       10.64 |               3.04 |
| % of_growth during 2014 as compared to 2013 |        4.33 |              10.99 |

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