CLR Snippets :: Committee on Cost Cutting Measures Recommends Strong Accountability

CLR SnippetsMinister of State for Civil Aviation, Shri K. C. Venugopal informed Rajya Sabha today that in accordance with Turn Around Plan (TAP) approved by Government for Air India, some flights, which were not meeting the fuel cost /cash cost of operations, have been withdrawn by the airline. However, commencement and withdrawal of flights by any airline depend upon the commercial judgment of the airline. The Minister further said that Air India periodically monitors the carriage/load factors/financial performance of services on its network and makes efforts to improve their performance. Whenever any service recurrently gives rise to cash losses, Air India analyses the reasons for the losses and based on the strategic importance of such services to its network, arrives at a decision whether to continue or withdraw such services. While determining the desirability or otherwise of discontinuing operations of loss making services Air India takes into account the revenue contributions made by the subject services to its other services by way of feeder traffic. As such non-profitability of any one flight is not taken in isolation as the sole barometer of its financial performance. A committee which was constituted by the government to recommend various cost cutting measures has submitted its report to the Government and its recommendations mainly relate to efficiency audit, strong accountability at all levels, operating model, rationalization of loss making routes, dynamic pricing, passenger facilities etc, the Minister said.


Tags: Air IndiaAirlineCivil AviationGovernmentIndiaJet AirwaysRajya SabhaThe Minister

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