The Hindu Business Line : `Unviable routes cost Indian Airlines dear'

A close look at the airlines annual report for 2001-02 shows that as many as 24 of the 70 domestic services operated by the airline during that year did not meet even the direct (cash) cost of operations.

While 11 services met the total cost of operations, 35 services met the direct cost of operations during the same period.

As regards international sectors during 2001-02, IA in all operated 42 services of which 20 services met the total cost of operations.

While 17 services met the direct (cash) cost of operations, five services did not meet even the direct (cash) cost of operations.

For the year 2001-02, IA, which reported a net loss of Rs 246.75 crore for the year ended March 31, 2002, carried lesser number of revenue passengers as compared with 2000-01.

The report shows that IA carried 42.22 lakh revenue passengers in the domestic sector in fiscal 2001-02 as against 46.80 lakh on the same sector during the previous year.

The domestic revenue passengers carried by the airline has been on a declining trend since 1993-94, when the total domestic revenue passenger carried in that year was 72.37 lakh.

This further declined to 69.21 lakh in 1994-95 and to 52.51 lakh during 1997-98 and to 47.03 lakh in 1999-2000.

Interestingly, 1993 was the year that the Government permitted the entry of the private sector players into the domestic aviation sector.

During 2001-02, the total number of international revenue passengers also witnessed a decline to 13.03 lakh passengers as against 13.13 lakh passengers carried during the previous year.

The passenger load factor (PLF) for all type of aircraft in the fleet of the airline came down to 60.5 per cent as against 65.30 per cent during 2000-01.

The amount of cargo carried by the airline including excess baggage declined to 80,236 tonnes as against 91,418 tonnes carried during 2000-01. The total foreign exchange earnings of the airline have declined to Rs 1,320.90 crore in 2001-02 as against Rs 1,409.42 crore recorded during 2000-01.

The yield per passenger in 2001-02 stood at Rs 5,388.20 as against a budgeted level of Rs 5,418.23. However, during 2000-01, the yield per passenger stood at Rs 4,982.01.

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