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Committee on Public Undertakings (1969-70) C.P.U. No. 169 COMMITTEE ON PUBLIC UNDERTAKINGS (1969-70) (FOURTH LOK SABRA) SIXTY·NINTH REPORT AIR INDIA MINISTRY OF TOURISM AND CIVIL AVIATION L 0 K S A B 1I ,\ SEC RET A R I A T ~EW DELHI April, '?70/Vaisakha, T'(].~ (S) Pr;c~ : Rs. 1.40 ~IST OF AUTHORISED AGENTS FOR THE SALE OF LOK SABHA SECRETARIAT PUBLICATIONS ------------------------------- 81. NUDe of ",,,,1 ~) No. No A}IIDlfaA PRADBSH u. Cbarlh Lambert '" COrn­ paD" 101, Mahatma ADdbra UalftnkJ Geaaal 8 . QaDdbi ROWl,OppoallC Coopensift Stona LId., QOIIIt T O'Ifcr, FUrl, Wllu (VIIUbapetnem) Bombay. a. Go&. l.IUhoaiplda, Chen) 94 I). The Currellt BOOk Huuac 60 aDd SODa. OcDln1 M.- Marull Ume. Rqhunll' h CIbIDu aad Newt AI tD&I, o..tall Street, Bombay-1 fIIcwpcI. CJaaDdrailri, CJIlltOor DiIIrict. I.. D«caD ti ;,at Stall, I'rr J:OD CoUqe Rcau, ASSAM 0Gae-4. , IS. MIl. Uah¥ Bwk l.>cPOI, ,aSIA, Chua Buar, )(bill Houac, Glrpam Rcae1. " Bomba,-l B.R. 8IHAR~ 4. Amar Kdab Oiw, 1'0111 MYSO~E aoa .,.. DIet..,,,a) Roac. ., Jamtbedpur. 16, MI •• i'eople. Bool Mcou.r. 16 Opp. J... pmoben P..Iaa. M"on-I. OUJAJ<AT ~, Vila)' SIUI'C&, SlIlillD koe&J, RAJASTHAN ADaDd. I,. IlltoauUon Qea"!l_ 6 TIIiI New Ordcr ti~ GOftrDment ot itajUUlUlo Compao" BIlla kridlC, Tripoli&, Jupur City. Abmedal*1-6 UTTAR PRADBSH HARYI\NA Ill. S",a,tit IDduIU'lai worSe, 7. Mil. t'mbbu tiouk S.nt~, 14 '9, Holi St~, Mea'll' Naa Subalmandl. GurpOll, CitJ. (Har,na). 190 MADHYA PRADt::SH' •• MGdIrD hook Houae. Stu" '3 Va. Palace,ladon Cil, WBST BBNGAL MAHMASHTRA 10, Gt.mhaloka, ,/1, .-\Jnt>IC8 10 Mootbajec Road, Selahl­ .. Mil. SIIDdcn1_ GiaDdlaI:IC. ril, 14 PupDaa. 001, Qilpum R.oed, Ne8r IS PriDCell Street, BOmba,-a. n, W. Newman & eaau-ny Ltd., 3, Old Court Hoo,e "'0 The InlemadODaI Boot Street, Calcutta. HOUle (Priftle) l.ImjIed., 9. Aah lADe. Mablltma u Ping. K. L M8kbop.db,.), GandhI Roed, BOmba,-1. 6/IA, 8mlc:bbaram Aknir lADe, Calcuaa-Ia. I I. TIM IntaDaQooal Book Sen1<:e, De..'QII O"mkhana, Poo.-.. 4 CORIg:GI{DA SIXTY-NINTH RFPORT GF CDMMITTEE ON PUBLIC UNDERTAKINGS ON AIR-INmA• ..----- -~---~------~~-------~-------~------------~--~--- Page Para Line For 'Read -...... .. ---... --.. ~-......--.------ ..... ~ .. --~ -.-....-.... -..-.--.-.-,-~-- 8 ---- 2.22 6 Formase.­ ForUb sa ~ 2~51 4 enable enabled 23 2.62 15 , opened opened opened' 24 2.64 7 suffi c,inet sufficient 84 - 2.64 8 aircrat. a1J'crafts 3Q o3.3'-'~ ~ 'thatpd~ter coitporation 36 3.23 7 -4~lete f at be fo re so Iic! t 42 4.3 3 Chai rman General Manager 49 4,26 1 I In 54 4.41 9 no on 58 4.58 2 t tol~~~ Dat1on~s""" 61 4.?O 6 ~ " ,/ f Bank'-aI'ter state \ -,\ 61 4.70 17 nevt r next 63 4.79 17 COZlmpletely 0 completely 66 4.81 8 ,pres1te~t of theJoofore Indian 69 5.9 8 Aircraft .Aeronautics 69 5.9 9 Come ~ue 96 3.23 16 along alone 96 3.23 JEte Delete the lines o' 00 f In the 1 ast •••••• Aeroflot along" 104 4.81 their I. "12119 CO!,(TBNTS PAGI! O>MPosrrION OF THB OlMMITTIII (iii) . COMPosInoN OP 11fI! STUDY GROUP (VI IN1'llODUCTIQNRY • (vii) I. INTRODUCTORY (A) Historical Background I (B) Objects and FWlctions (C) Examination by Estimates CCIr.mittee (0) Examipation by Committee on Public tJndertaking6 3 1I. OpERATIONS (A) Routes Pattern 4 (B) India/U.K./USA route. 5 (C) India/Japan route-Taipch 6 . .,.: (0) India/USSR routc 9 "'of (B) India/Mrica route 17 (ll) Fleet 19 (G) Acquisition of Jumto Jets • 19 (H) Undercuttings in fares as. m. TIIARIC tI .. 4 (A) Load b:tor J .. • :a8 (B) Tedmidln • Trdic 33 (C) Cbuter PIiIID .. 38 (D) ~ between lAC. aQd Air-lJ2dia for TlPBic 39 (B) 0dluraI Grcupe/StudcD.t Trdic 391 (P) Bmipmt TrdIc .p IV. OaGANIIATlON.1'IIIIONNEL 6: O!BU MAnIN CA) Board of the Corporation.. .fa. (8) AdviIory Committee 43 (C) Recruitment of Pilots 48 (D) Travel Aaents 5a: (B) Services to Paaenaen and tteatment to Indian Plaengen in Nz-Indil flights. • • • . • . • . •. 55· m AnnQllDoementin regional langllagc£ at Indian Airports for fliahts • '5 'lS~l (ii ) PI,OR l G) Transport arrangements at Airports S6 (H) Porters at Airports 57 (I) Dress ofAir Hostesses 57 {J) Name in Hindi on Air-India Ain::rafts ,., (K) Mli :t~:unc.: of r 1 Jian N:wlpapers in Air-India Olfic:. ahroad S8 (L' Participation in Hotel Projects ,. V.EN~ Jet Overhaul Worbhop at Bombay. 67 VI. AIRCRAFT SPAR.. AND Sro.. 70 VII. Fum. r .' 74 V III. PINANCB AND AccouNTI (A) Capital (B) Dividend (C) Profits (D) &peIlaCS AWINDICES .:iumT'llary ofConclllSionsJRecammendationl contained in the R,eport 91 COMMITTEE ON PUBUC UNDERTAKINGS (1969-70) CBI.IRMAN ·Shri M. B. RanB. MEMBERS 2. Shri R. K. Amin. 3. Shri Bal Raj Madhok. 4: Shri K. Ananda Nambiar. S. Shri Visbwa NatJa PImdey. -6. Shri T. A. Patil 7. Shri G. S. Reddi. 8. Shri P. M. Sayeed. 9. Shri Digvijaya Narain Singh. 10. Shri G. Viswanathan. 11. Shri Nand Kishore BhatL 12. Shri Godey Morahari. 13. Shri Bhabhani Charan Pattanaya' 14. Shri Rajendra Pratap Sinha. "-IS. Shri Dattlopant Thengari. SECllETAllIAT Shri A. S. Rikhy-loint ~cntllTy. Shri S. C. Mookerje~Deputy S«nIIIt'y. Shri M. N. Kaul-UruIer~. -------------------------------------------------Appointed Chairmanfrom 10-12-1969_ ShrlG.S.D1dOaII,redped. ..Ceased to be me:nber .... e.f. 3-4-1970 consequent 00 hie ftItiNment &om R.IJJa Sabba. (II ) STUDY GROUP n ON AVIATION, PROMOTIONAL AND DEVELOPMENTAL UNDERTAKINGS COMMITTEE ON PUBLIC UNDERTAKINGS (1969-70) 1. Shri BaI Raj Madhok-Convener. 2. Shri P. M. Sayeed-Alternate Convener. 3. Shri G. Viswanathan-Member. 4., Shri Godey Murahari-Member. 5. Shri Bhabhani Charan Pattanayak-Member. 6. Shri Rajendra Pratap Sinha-Member. ( v ) INTRODUCfION I, the Chairman, Committee on Public Undertakings having been authorised by the Committee to present the Report on their behalf, present tbis Sixty-ninth Re'pIort on Air India. 2. This Report is based on the examination of the working of Air India upto the year ending 31st March. 1969. 3. The Committee took evideDc:e of the representatives of Air India on the 22nd, December, 1969 and 23rd January, 1970 and of the Ministry of Tourism and Ovil Aviation on the 27th January, 1970. The Com- mittee also took evidences of Shri M. S. Oberoi, M.P., Managing Director, Oberoi Inter-Continental Hotel on the 24th February, 1970, Shri 1. R. Bhalla, President 01 the IDdian Institute of Architects on the 26th February, 1970 and Shri Piloo Mody, M.P., Architect on the 14th April, 1970. 4. The material relating to Air India was processed at various stages by the Study Group II on Aviation, Promotional and Developmental Undertakings of the Committee. S. The Report was adopted by the Committee in stages 'On the 13th,_ 24th and 27th April, 1970. 6. The Committee wish to eJ.'press their thanks to the Ministry of Tourism and Ovil Aviation and Air India for placing before them the­ material 8l'd information that they wanted in connection with the elUUDi­ nation of Air India. They wish to thank in particular the Representativea. of the Ministry, Undertaking and non-officials who gave evidence and placed their considered views before the Committee. M. B. RANA, Chairman. Committee on Public Dndertakings_ NBW DELm; April 28, 1970. Vaisakha 8, 1892=::---:=- (S). (vii ) CHAPTER I INTRODUCTORY (A) Historical Background The histc)ry of Air-India dates back to the year 1932. In that year, Tata Airlines was started as a department of Tata S:>ns Ltd. On 15th Oetober, 1932, Tata Airlines commenced operations of a weekly airmail service between Karachi and Madras via BOID'~ay and Bellary with two light sirlgle engined aircraft. 1.2. On 29th July, 1946 Air India Ltd. was formed as a public limited company and took over Tata Airlines with all its aircraft, e.quip­ ment, engineering facilities, training personnel, airmail contract etc. 1.3. At the end of 1947, Air-India submitted a scheme to the Gov­ enunent for the dpleratioll of an air-service between India and the United Kingdom. Under this scheme, which was approved by Government Air­ Iadia International Ltd., a new company, was formed in which the Government had 49 per cent shares and the Air-India Ltd. 10 per cent. Under an agreement concluded between Air-India Ltd. and Air-India International Ltd., Air India Ltd. was appointed Technical Managers and principal booking agents in India for Air-India International Ltd. for a period of 10 years. Air-India expanded its flying, engineering and traffic organisations, to meet the requirements of the new com~y. Air­ India International Ud. was formed in 1948 and it inaugurated its first International senice Bombay/London on 8th June of the same year. 1.4. During the five years after the Second World War, the traffic carried by domestic air tran,sport operators showed phenomenal growth, but the financial condition of the industry deteriorated rapidly mainly ~use too many operators had been licensed by the Air-Transport Licensing Board in relation to the route mileage and operating frequencies avaI1able. By 1950, the industry as a whole was operating at a heavy loss and early in 1950, Government decided to institute an !ndependent enquiry into the state of the air transport industry and in February, 1950, they apPointed an Air-Transport Enquiry Committee. The Committee work­ ed out standard costs and recommended a system bf subsidies under which airlines meetfng or lJeating their targets would make a profit and those failing to meet the targets would make a loss.
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