Air India exceed TAP benchmark for yield and load factor in FY2012/13

India's Minister for Civil Aviation Shri Ajit Singh commented (14-May-2013) on the performance of Air India during financial year 2012-13 and compared the turnaround plan (TAP) milestones and actual achievements as follows:

• On Time Performance: TAP benchmark for FY2013 of 85%, actual achievement of 77.7%;
• Passenger load factor: TAP benchmark for FY2013 of 69.5%, actual achievement of 72.7%;
• Yield: TAP benchmark for FY2013 of INR3.53 (USD 0.064), actual achievement of INR4.25 (USD 0.0776 cents).

Air India was able to achieve savings during financial year 2012-13:

• Staff cost due to rationalisation of the pay structure: INR2.43 billion (USD44.4 million);
• Booking Agency commission: INR1.18 billion (USD21.5 million);
• Interest on Loans and Working Capital due to implementation of Financial Restructuring Plan: INR1.68 billion (USD30.7 million).

Meanwhile, Air India entered into fresh contracts with oil companies in Jan-2013 which will provide a benefit of INR5 billion (USD91.3 million) p/a. Mr Singh noted: "Most of the outstanding overdues of Oil Companies are planned to be liquidated by the end of May, 2013. The total revenue is proposed to go from 16,130 crores to 19,393 crores i.e. a jump of 20.2%.The net loss is likely to come down from Rs. 5198 crores to Rs. 3989 crores i.e. a reduction of Rs. 1209 crores. EBITDA is expected to go from 19.45 crores to 1040 crores". The Minister also explained: "The total revenue during the period has increased by about 9.6% from Rs. 14,714 crores in 2011-12 to Rs. 16,130 crores in 2012-13. Air India carried 14.05 million passengers in the year 2012-13 as against 13.40 million passengers in previous financial year, which shows a growth of about 5%. The net loss of Air India for the financial year 2012-13 has come down by about Rs. 2261 (Net loss in 2011-12 - Rs. 7559.74 crores in 2012-13 - Rs. 5198.55 crores). The EBITDA has improved by 2256 crores over previous year and it stands at Rs. 19.45 crores during the financial year 2012-13 [EBITDA in 2011-12 (-) Rs. 2236.95]. Passenger Load Factor (PLF) has shown a great upward trend. For the whole network operation, the PLF stood 72.7% during 2012-13 compared to 68% during financial year 2011-12.There is a marked improvement in On- Time Performance ( OTP). The network OTP achieved during financial year 2012-13 has been 77.1% (domestic 80.2% and international 70.8%)." [more - original PR]