Air-India, Indian Airlines Pulled Up For Poor Performance

The parliamentary standing committee on civil aviation ministry yesterday flayed Air India (AI) and Indian Airlines (IA) for low productivity, indiscipline, lack of punctuality and poor service.

It also pulled the airlines up for delay in decision-making, which contributed to their losses.

Criticising Air India for the huge shortfall in expenditure in acquisition of new aircraft the last two fiscal years, the committee, in its report tabled in Parliament yesterday, said new aircraft should be purchased and inducted expeditiously within this financial year.

The committee, headed by Sunder Singh Bhandari, asked the government to take an early decision on the Kelkar Committee recommendations on financial restructuring of Indian Airlines, which includes capital injection of Rs 922 crore.

 

Reviewing the demands for grants for the ministry, the committee chairman castigated ministry officials, saying It was highly inappropriate and objectionable for secretary, civil aviation and other officials of the ministry to question the working methods of the secretariat attached to the standing committee. The committee said only about Rs 915 crore of the allocated Rs 4407.78 crore was utilised for the new aircraft acquisition projects, adding that allocations during this period were unrealistic.

The government should approve plan allocations on a more realistic basis, it said.

Stating that the airlines were now saddled with an ageing fleet, the committee recommended that the decision-making process should be streamlined and new aircraft should be purchased and inducted expeditiously.

Air India incurred a loss of Rs 447.84 crore during the last two financial years.

The panel asked the airlines to avoid wet-leasing of aircraft for running regular sectors on a medium and long-term basis. Air India should do a cost-benefit analysis to see if it was necessary to continue with this arrangement, it said.

The panel said though there had been a turnaround in Indian Airlines performance, problems like poor services, a de-motivated and indisciplined approach still exist.

The committee was told that the anticipated Rs 40.50 crore loss during 1996-97 were estimated to rise to Rs 60 crore in the current financial year.