New Delhi: Air India may have improved its financial performance on the back of low fuel prices, but the Prime Minister's Office (PMO) doesn't seem convinced about the flag carrier's revival story.
The PMO has asked the airline to improve its performance on all fronts. It wants on-time performance improved to at least 85 per cent, revenues increased by 10 per cent and industry standards met on load factor, or capacity utilisation, and has also asked the airline to carry out a proper survey before inducting new aircraft.
The targets were given at the PMO's first official review of the airline, convened by the Prime Minister's principal secretary, Nripendra Misra, on July 6.
Loss-making Air India is set to report an operational profit for FY16, helped by Rs 2,700 crore of savings on account of lower fuel prices and a one-time gain of Rs 1,200 crore from the sale and lease back of Boeing 787 Dreamliners. But its revenue for the year is estimated to have increased only marginally even after accounting for the proceeds from the aircraft sale, which points to the risks faced by the state-owned carrier in an increasingly crowded market.
26/07/16 Mihir Mishra/Economic Times
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The PMO has asked the airline to improve its performance on all fronts. It wants on-time performance improved to at least 85 per cent, revenues increased by 10 per cent and industry standards met on load factor, or capacity utilisation, and has also asked the airline to carry out a proper survey before inducting new aircraft.
The targets were given at the PMO's first official review of the airline, convened by the Prime Minister's principal secretary, Nripendra Misra, on July 6.
Loss-making Air India is set to report an operational profit for FY16, helped by Rs 2,700 crore of savings on account of lower fuel prices and a one-time gain of Rs 1,200 crore from the sale and lease back of Boeing 787 Dreamliners. But its revenue for the year is estimated to have increased only marginally even after accounting for the proceeds from the aircraft sale, which points to the risks faced by the state-owned carrier in an increasingly crowded market.
26/07/16 Mihir Mishra/Economic Times
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