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Air India says net loss down, revenue up despite strike

Though the Dharmadhikari report expects Air India would be cash surplus by eight years, the efforts are on so that it happens earlier

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Government-owned carrier is expecting all 27 Dreamliners it ordered to be delivered by 2016. With the first already having arrived in Delhi, Air India is going to get five more in the current year.

“The first commercial flight of the Dreamliner is on September 19. It will be to Chennai and Bangalore. Only six-to-seven airports in India are compatible with the Dreamliner. After two-to-three months, it will fly on international routes,” Civil Aviation Minister said. The B-787 will commence flying to Europe and Australia.

“Though the Dharmadhikari report expects Air India would be cash surplus by eight years, the efforts are on so that it happens earlier,” the minister added.

PERFORMANCE OF AIR INDIA
Unlisted Air India did not release quarterly numbers
Net loss
Rs crore
Apr-Jul2011 2,290
Apr-Jul 2012 1,733
Net losses down by Rs 557 crore
Net revenue (overall)
Apr-Aug,2011 4,467
Apr-Aug,2012 4,757
Net by 6.5 % despite
17% decresae in capacity because of pilot strike
Domestic performance
Apr-Aug,2011 1,588
Apr-Aug,2012 2,119

A committee led by gave its recommendations in January to resolve dogging the carrier, including parity in salaries, working conditions and seniority.

Despite a decrease in capacity of 17 per cent due to a strike by a section of pilots, Air India posted Rs 4,757 crore revenue during April-August, up 6.5 per cent over the corresponding period of 2011. Net loss also came down by Rs 557 crore. In the first quarter, it has a net loss of Rs 1,733 crore. The passenger load factor also increased to 71 per cent in the first quarter. Singh expects the Dharmadhikari report will be implemented by September-end. The level mapping of various posts of the erstwhile Air India and Indian Airlines has been completed. The combined seniority of erstwhile Indian Airlines & Air India has been fixed. The exercise of fixation of pay is under progress and will be completed in seven days.

About the reinstatement of striking pilots, Singh said, “Out of remaining 97 pilots whose services were terminated, 50 pilots have been recommended for reinstatement, 5 pilots have not been found suitable for reinstatement and case of remaining 42 pilots is still under consideration.”

Out of the total 413 striking pilots, 316 pilots who had reported sick en-masse have been taken back on duty.

In the recent past, Singh has taken string of actions for Air India.

The principle of ‘No-Work-No-Pay’ has been adopted and the management has reserved its right to take disciplinary action against reinstated pilots as per the rules.

The posting of pilots after rationalization of bases has also been initiated according to which they would be posted and residing at a place from where they are required to fly. 60 pilots who were posted in Mumbai have already been shifted to Delhi because their flights commence from Delhi.

According to the statement issued by the ministry, “This will reduce the dead working hours (will save travel time from place of posting/residence to the place from where they are required to fly) and cost of stay & transport of pilots.”

The Productivity Linked Incentive (PLI) has also been abolished with effect from July 1,2012 as per the recommendation of Justice Dharmadhikari Report.

The ministry has issued directions to ensure that Flight Duty Time Limitation () and Flight Time Limitation () are implemented as per the DGCA guidelines.

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