Air India managers may get more powers

Our Bureau

NEW DELHI, Nov. 21

IN an effort to garner more business for the airlines, the top management of Air India has written to the Managing Director asking that the managers be allowed to take ``subjective decisions'' for the benefit of the airlines.

``In today's depressed market, AI is losing business as managers are scared of taking subjective decisions regarding what incentives to give to agents for getting more passengers to fly with AI. Other airlines do not suffer from such problems. Therefore, they are taking away huge numbers of passengers who would not mind flying with us. A letter has been sent to the Managing Director asking that managers be empowered to take on-the-spot decisions which would be in the best commercial interest of the airline,'' a senior AI official said.

The move, if approved by the MD, could result in an additional inflow of between Rs 40-50 crore for the airlines, officials claimed.

``The MD is empowered to take such a decision. Even if there are some defaults, the airline should not worry too much as every organisation allows some amount of bad debt. But by not allowing managers to take subjective decisions, AI is losing badly,'' a senior official said. Meanwhile, the airline is hoping that the recent easing of international aviation turbine fuel (ATF) prices would also have a major impact on the bottomline of the airline. Official sources claimed that if the prices remained in present range, the airline is likely to save around Rs 75 crore annually.

Besides, the incidents of September 11 in the US have also seen a boost in demand for seats from the US to India and subsequent rise in fares for the airline.

Sources claimed that the fares from the US to India had touched $1,370 for a return ticket from around $950 last year mainly because of the huge demand for tickets.

The airline, which hopes to lease in two more Airbus A-310 by January next year, plans to initially place the aircraft for Haj charters and thereafter induct them for scheduled operations from April next year. However, for the time being, the airline is not planning to make side trips for picking up passengers from destinations close to Saudi Arabia when the aircraft returns empty to India after dropping off the hajis.``AI is looking at the costing of such operations. The feeling is that such operations may not be viable. There are a variety of reasons for this, including the fact that the one-way fare that will have to be charged would probably not cover the landing, navigational and other charges which will be incurred,'' officials said.