Air India's Rs 404-cr monthly cash flow shortfall worries Minister

Our Bureau Mumbai | Updated on March 12, 2018 Published on December 20, 2012

Airline urged to keep tight rein on costs

Union Minister of Civil Aviation Ajit Singh on Thursday expressed concern over the estimated monthly average cash flows of Air India for the October 2012-March 2013 period of the current financial year.

The cash flow during the period shows a net shortfall of Rs 404 crore per month with inflows being at Rs 1,348 crore and outflows estimated at Rs 1,752 crore, said a Ministry statement after a review meeting.

The Minister said that though there was an overall improvement in the performance of Air India, it is important that the revenue generated should meet the costs incurred.

The Minister reviewed in detail the functioning of Air India, including revenue generation and cash flow management, status of implementation of Computerised Management System for pilots and cabin crew, status of operations of the Dreamliner (Boeing 787) and other issues.

He asked Air India to go into minute operational details to cut costs including those incurred on overseas offices, salaries, fuel and office expenses.

Singh said since online facility was available, the necessity of deputing staff abroad for assisting Air India/embassies for ticketing needed to be examined.

He further asked Air India to negotiate with public sector oil marketing companies for the same discount they are providing to international and domestic carriers.

The Minister said that Air India should think out of the box to change its image of being a public sector unit and transform itself to a commercial organisation.

He also expressed concern about the on-time performance (OTP) of Air India and asked the company to take all steps to improve its position. Priority should be given for providing adequate training to pilots and optimally utilising the maximum allowed duty hours, he said.

The review meeting also discussed the need to screen employees, including cabin crew, on various parameters such as medical fitness.

Singh stressed on regular payment of salaries to the employees by a fixed cut-off date. He said that out of Rs 2,000 crore which Air India is to receive next month in the form of equity as budgetary support, Rs 500 crore must be utilised to clear all arrears of employees.

While noting that three B-787 Dreamliner aircraft have been received and five more would be received during the current financial year, which Air India plans to fly to Sydney, Melbourne and Singapore, Singh asked the company to explore the possibility of flying to Indonesia and other areas.


Published on December 20, 2012
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