New Delhi:
As the government considers a bailout plan for Air India, a panel of Members of Parliament, headed by CPM's Sitaram Yechury who reviewed the functioning of Air India on Tuesday had some tough questions for the airline's management.
The issues raised include why there has been no cost-cutting in areas other than salaries since employee wages constitute only 18 per cent of the airline's cost.
The MPs are also wondering why there is no accountability for a flawed leased policy. Air India has about 37 leased planes but the airline does not have an exit clause. In other words if the airline wants to return these planes before the lease expiry then it has to pay a penalty.
Other questions are why despite 57 new planes, there has been no route expansion, and why the airline has not taken fuel efficiency into consideration when fuel constitutes nearly 40 per cent of its operation costs.
The issues raised include why there has been no cost-cutting in areas other than salaries since employee wages constitute only 18 per cent of the airline's cost.
The MPs are also wondering why there is no accountability for a flawed leased policy. Air India has about 37 leased planes but the airline does not have an exit clause. In other words if the airline wants to return these planes before the lease expiry then it has to pay a penalty.
Other questions are why despite 57 new planes, there has been no route expansion, and why the airline has not taken fuel efficiency into consideration when fuel constitutes nearly 40 per cent of its operation costs.
