AI's mantra: stop profitable routes

MiD DAY has obtained a document that indicates how the AI management discontinued these flights, even though they were making profits for the ailing airlines

The controversies plaguing Air India show no signs of dying down. One of the key issues that Air India pilots went to strike over earlier this year was the unexplained cancellation of the carrier's 32 profitable routes, allegedly done in order to benefit other private airlines. Union Civil Aviation minister Vayalar Ravi's assurance that the matter would be investigated has done little to quell the demand for explanations. As the debate rages on between the Air India management and the inquisitorial unions, MiD DAY has managed to access valuable information on the 32 cancelled routes, which throw up interesting questions.

The documents available with MiD DAY reveal that two leading Indian private carriers have been greatly benefitted by the cancellation of 20 of the 32 AI routes, while half a dozen international airlines are cashing in on the cancellation of the remaining 12 routes. The documents also reveal that the seat factor for most flights on the routes at the time of cancellation was greater than 80 per cent, which is a clear indication of the fact that the routes were in the pink of prosperity. For the flight CD 7559/7560 running between Mumbai-Chennai, the seat factor at the time of cancellation was a perfect 100 per cent.

"Our simple question for the Aviation Ministry and the top management of AI is, why did they cancel operations on the most flourishing routes? We smell a scam, and have raised the matter with the Union Civil Aviation Minister. There should be a detailed enquiry, in order to expose the real intention behind the cancellations," said a senior ICPA pilot. Another senior AI official revealed that the flights had all been cancelled in the last 17-18 months. "The beneficiaries were operating on this route earlier as well, their aircrafts would ply about half an hour before or after the AI flights. After the flights were cancelled, the seat factors of the private airlines improved speedily, as there was no competition from the AI flights."

Official speak
Former AI Executive Director (Public Relations), Jitender Bhargava, said, "These accusations have been doing the rounds for at least a couple of years now. An RTI application has also brought to light the average seat factor for the 32 flights, which were withdrawn. Prima facie, the charge looks valid, since a flight with a healthy seat factor of over 80 per cent was withdrawn. The onus now lies with the Air India management to provide legitimate facts and figures, which will conclusively justify their motives."

He continued, "It may be that the charge is not applicable to all the 32 cancelled flights, but even if it is true for only a few flights, it is a very serious offence. It is not acceptable for senior functionaries to be taking decisions that harm the company for which they are working, no matter what the compulsions, political or personal."

Cag revelations
CAG report number 10 issued in the year 2010 clearly indicates that tardy and inadequate maintenance work done by the airlines had led to heavy losses. The report reveals that the utilisation of AI's Jet Engine Overhaul Complex in Delhi (JEOC) was low during the period extending from 2004 to 2009. This resulted in low availability of engines for the operation of aircrafts. On various occasions, aircrafts had to be grounded owing to faulty engines. In order to improve the situation, the carrier brought in engines on short-term lease, and outsourced the repair of engines. This did not help either, as considerable time was lost in dispatch and retrieval of engines. All in all, the authorities displayed gross negligence in undertaking and overseeing upgradation and maintenance of the engine parts, the total financial repercussions of which resulted in losses amounting to an astronomical sum of Rs 501.97 crore. The report squarely states that JEOC operations were inefficient, ineffective, and uneconomical.

Losing it?
While the total losses incurred by the national carrier has touched the Rs 40,000 cru00a0mark, the airline has suffered a cumulative loss of over Rs 13,300 crore since its merger with Indian Airlines in 2007.

The Other Side
Despite repeated attempts, Air India CMD Arvind Jadhav could not be reached for comment. Union Civil Aviation Secretary, Nasim Zaidi told MiD DAY, "We have received information on the matter from the AI CMD, and are examining it."

Cancelledu00a0flight routes
Flight Nou00a0u00a0u00a0u00a0 Destinations
IC 997/998u00a0u00a0Cochin-Doha
IC 997/998u00a0u00a0Cochin-Bahrain
ICu00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0 Cochin-Muscat
IC 957u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0Chennai-Coimbatore
IC 925/926u00a0u00a0Calicut-Muscat
IC 997/998u00a0u00a0Cochin-Calicut
u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0 u00a0Bahrain-Doha-Calicut
IC 595/596u00a0u00a0Mumbai-Calicut-Mumbaiu00a0u00a0u00a0u00a0u00a0u00a0
IC 993/994u00a0u00a0Calicut-Kuwait-Calicutu00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0
IC925/926-
IC993/994u00a0u00a0Chennai-Calicut-Chennai
IX 343u00a0u00a0u00a0u00a0u00a0u00a0 Calicut- Dubaiu00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0
IX 373u00a0u00a0u00a0u00a0 u00a0u00a0Calicut-Bahrainu00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0
IX 363u00a0u00a0u00a0u00a0u00a0u00a0 Calicut-Abu Dhabiu00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0
IX 337u00a0u00a0u00a0u00a0u00a0u00a0 Calicut-Muscatu00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0
IX 351u00a0u00a0u00a0u00a0u00a0u00a0 Calicut-Sharjahu00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0
AI 917-918u00a0Calicut-Dammamu00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0
IX 393u00a0u00a0u00a0u00a0u00a0u00a0 Calicut-Kuwaitu00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0
IX 473u00a0u00a0u00a0u00a0u00a0u00a0u00a0Calicut-Dohau00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0
IC 217/218u00a0u00a0Hyd-Kolkata-Hyd
IC 564 /565u00a0Hyd-Coimbatore-Cochin-
u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0 Coimbatore-Hyderabad
IC 961 / 962u00a0Hyd-Sharjah-Hyd
IC 957u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0 Chennai-Coimbatore-
u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0 Cochin-Sharjah
IC 931 / 932u00a0Chennai-Trivandrum-Chennai
CD 7559/7560u00a0Chennai-Bangalore-Mangalore-Blore-Chennai
IC 917u00a0u00a0u00a0u00a0u00a0u00a0u00a0 Chennai-Bangalore-Pune-Blore-Chennai
IC 951u00a0u00a0u00a0u00a0u00a0u00a0u00a0 Chennai-Bangalore-Ahmedabad-Blore-Chennai
IC 923u00a0u00a0u00a0u00a0u00a0u00a0u00a0 Chennai-Blore-Goa-Blore-Chennai
IC 737/738u00a0u00a0Chennai-Bangkok-Chennai
IC 909u00a0u00a0u00a0u00a0u00a0u00a0u00a0 Bangalore-Cochin-Trivandrum-Blore
IC 917u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0Bangalore-Pune-Goa-Blore
IC 573/577u00a0u00a0Chennai-Colombo-Chennai
IC955/956u00a0 u00a0Chennai-Kuala Lumpur-Chennai
u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0u00a0 Bangalore-Singapore-Blore