PMO seeks detailed report of Air India performance

New Delhi: With the NDA government set to present its third Budget next month, the Prime Minister’s Office has sought a detailed performance report from national carrier Air India, which is surviving on a Rs 30,000-crore bailout package from the exchequer. This comes even as Air India plans to add 35 new planes this year as the airline prepares for “consolidation and expansion” by flying to more number of international as well as domestic routes, CMD Air India Ashwani Lohani has said.

Meanwhile, government sources also indicated that Air India may acquire a total of another 100 aircraft on lease within the next four years that may take its fleet strength to about 230 by 2021.

Meanwhile, according to reports, the top Air India management is expected to make a presentation on the performance of airlines during a review meeting at South Block later this week. The government-run carrier reported operating profit of Rs 105 crore, the first time since the merger of erstwhile Air India and Indian Airlines, in the previous fiscal mainly on account of low fuel prices and discounted ticket sales, among others. “These review meetings are a part of the monitoring mechanism since the government is infusing funds in the carrier,” an airline official was quoted by news agencies as saying.

In other developments, Mr Lohani was quoted as saying, “I expect almost 35 new planes to join the Air India family during 2017 and all of us need to be in full readiness to receive them, fill them and fly them.” He apparently made the remarks in a New Year message to the employees. With the addition of the new aircraft, the group would have a fleet of more than 170 planes by this year-end. Currently, the group has about 140 aircraft.

While Air India has 106 planes, its low cost international arm Air India Express has 23 aircraft. Besides, there are around 10 planed with Alliance Air, a wholly-owned subsidiary of the national carrier that operates in regional routes. “2017 is going to be a year of consolidation and expansion. We are going to fly to many new international destinations and also connect new domestic destinations as part of the regional connectivity thrust of the government,” the CMD said, adding that fill more and fly more is the motto.

However, raising concerns about some instances of misconduct among the staff, he was also quoted as saying, “It pains me when I am made privy to acts of misconduct or witness some employees not displaying adherence to the highest standards of integrity.”