Mumbai, Dec. 20:
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.
Belt-tightening Minister
made a detailed review of Air India’s functioning Air India urged to seek
discounts from PSU oil retailers Airline asked to improve on-time performance
Rs 500 cr to be utilised to clear dues to employees
http://www.thehindubusinessline.com/todays-paper/tp-economy/air-indias-rs-404cr-monthly-cash-flow-shortfall-worries-minister/article4223052.ece
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