'Only 16 AI flights recovering costs' | india | Hindustan Times
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'Only 16 AI flights recovering costs'

Only 16 of Air India's (AI) 184 daily flights between April and June met total cost of operations, aviation minister Ajit Singh informed the Parliament today, HT reports.

india Updated: Aug 22, 2012 00:39 IST
HT Correspondent

Only 16 of Air India's (AI) 184 daily flights between April and June met total cost of operations, aviation minister Ajit Singh informed the Parliament on Tuesday.

The national carrier's total accumulated losses since 2007-08 have crossed Rs. 28,000 crore. AI and Indian Airlines were merged in 2007.

A route-wise analysis of AI routes revealed that nine services were not even meeting fuel cost while 90 services were meeting fuel cost but not meeting cash cost.

The aviation minister said 69 services were meeting cash cost but not meeting total cost while only 16 services met total cost of operations.

"A task force has been constituted to examine route economics and to find ways and means to rationalise the routes so as to make the operations more cost effective," Singh said.

AI's total accumulated losses since 2007-08 stood at Rs. 28,045.9 crore. It's estimated loss for the financial year 2011-12 was Rs. 7853.9 crore.

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"AI has completed integration of 74% processes and integration of 23% processes is in progress. The remaining 3% processes are yet to be initiated. Manpower integration is one of the important processes which is yet to be completed," he said.

The employee-aircraft ratio in AI is 258:1. In order to rationalise manpower for achieving optimum utilisation of manpower resources and as part of turn around plan, the airline board has given in-principle approval to a voluntary retirement scheme for all permanent and confirmed employees.

AI, Singh said, has also taken steps for complete route rationalisation and elimination of route network involving parallel operations, phasing out of old fleet, return of leased aircraft at tenure end or prematurely.