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Organization and Working of Indian Airlines Corporation

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Organization and Working of Indian Airlines Corporation ORGANIZATION AND WORKING OF INDIAN AIRLINES CORPORATION DISSERTATION SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF O^iiglfdir ©If PD^DQ@g(o)PD^s^ IN COMMERCE BY StiAUKAT AL1 Under the Supervision of Prof. Nafees Baig (Dean & Chairman) •-"1—r DEPARTMENT OF COMMERCE ALIGARH MUSLIM UNIVERSITY ALIGARH (INO(A) 199S DS2276 f External: 25674 Phones \lntetnsl: 327 Professor Nafees Baig FACULTY OF COWIMERCE ALIGARH MUSLIM UNIVERSITY MCom PhO , D.lin.XASf {Mar.chojier) ALIGARH 202 002 DEAN (INDIA) CERTIFICATE This is to certify that the M. Phil- Dissertation entitled "Organisation and Working of Indian Airlines Corporation" submitted by Mr. Shaukat Ali has been completed under my supervision. This work, in my opinion, is suitable for submission for the award of M.Phil degree in Commerce. <PROF. N<^ES£S-HS7ri6) Supervi sor .J."53 /^ Residence ; Nafees Manzil, 814, Sir S\-ed Nagar, Aligarh. ^? 2 7 8 6 8 STD Coc'e 0571 CONTENTS PAGES 1. List of Tables I 2. List of Figure and Diagrams II 3. Acknowledgements III 4. Preface VII 5. Methodology Adopted X 6. The Plan of the Study XII 7. Survey of Literature XIII CHAPTER 1 : GROWTH AND DEVELOPMENT OF AIR 1-46 TRANSPORT IN INDIA CHAPTER 2 ORGANISATIONAL STRUCTURE OF 47-78 INDIAN AIRLINES CORPORATION CHAPTER 3 WORKING AND PERFORMANCE OF 79-115 INDIAN AIRLINES CORPORATION CHAPTER 4 CONCLUSIONS AND SUGGESTIONS 116-134 BIBLIOGRAPHY 135-141 LIST OF TABLES Pages Table 1 : Fleet Strength of Indian Airlines Corporation 34 Table 2 : Ten Year Financial Statistics of Indian Airlines 38 Corporation Table 3 : Ten Year Operating and Traffic Statistics of 39 Indian Airlines Corporation Table 4 : Statement of Expenditure on Social Overheads 74 Table 5 : The Summarized Financial Results for 1990-91 and 84 1989-90. Table 6 : Summary of Operating Expenses 88 Table 7 : The Operating Data of Indian Airlines Corporation 102 Table 8 : Foreign Exchange Earnings 106 Table 9 : Utilization of Aircraft per annum 110 Table 10 : Recent Performance of Indian Airlines Corporation 112 II LIST OF FIGURE AND DIAGRAMS Pages Figure 1: Organisation Chart of Indian Airlines Corporation 58 Diagram 1: Operating Revenue of Indian Airlines Corporation 86 Diagram 2: Operating Expenses of Indian Airlines Corporation 90 Diagram 3: Operating Profit and Pretax Profit of Indian 92 Airlines Corporation. Diagram 4: Operating and Aviation Fuel Expenses of Indian 94 Airlines Corporation. Diagram 5: Cargo (Including Excess Baggage) of Indian 97 Airlines Corporation. Diagram 6: Number of Passengers 99 Diagram 7: Production and Sales 104 Diagram 8: Foreign Exchange and Passenger Revenue 108 Ill ACKNOWLEDGMENTS It is my privilege to express my enduring gratitude to my learned teacher and supervisor, Prof. NAFEES BAIG (M. Com; Ph. D; D. Litt; CASE, Manchester), Dean Faculty of Commerce, and Chairman, Department of Commerce, Aligarh Muslim University, Aligarh. He has been the fountainhead giving constant encouragement and guidance, through all the phases of this study. I am indebted to him for his meticulous care in critically evaluating the data and manuscript. I, cannot fail to mention the debt of gratitude> I owe to him for his keen interest, valuable advice, high perception, enthusiastic support, valuable suggestions and constant supervision. I also wish to thank Prof. I.H. Farooqqui, Prof. Samiuddin; Prof. Farooque Khan, Dr. M. Asif Khan, Dr. B.A. Iqbal, Dr. M. Talha, Dr. A.Q. Khan, Dr. Imran Saleem, and all other teachers of the Deptt. of Commerce and Dr. Shamim A. Ansari (Deptt. of Psychology), for their obliging guidance and filial encouragement. I am indebted to numerous colleagues and friends who have materially helped in the development and completion of this dissertation. To name a few, they are Dr. Fahim Ahmad, Dr. Aijaz Ahmad, Dr. Mohd. Shoeb, Dr. Shakeelur Rahman Khan, Mr. Iqbal Sayeed, Mr. Ahmad Hussain, Mr. Tarique Imam, Mr. IV Tarique Bhatt, Mr. S. Raziuddin, Mr. Javed Khan, Mr. Nasir Naeem, Mr. Mumtaz, Mr. Mansoor, Dr. Anis Ahmad, Mr. Intekhabur Rahman, Mr. Shah Alam, Mr. Naushad, Mr. Sharful Hoda, Mr. Nafeesur Rahman, Mr. Khatibur Rahman, Mr. Faiyazur Rahman, Arshi Bhai, (a research scholar of JMI), Mr. Masood Rana, Mr. Minatullah Azad, Mr. Feroze Anwar, Mr. Mohd. Zafar, Mr. Mohd. Sharif, Mr. Shahid Husain, Mr. Zafar All Anjum and Mr. Nesar Ahmad (President, Secretary and Joint Secretary- cum-Treasurar AMURSA). These Colleagues and friends have all offered warm encouragement and cooperation. My gratitude is also due to my obliging brother and friend Mr. Rahmat Karim for being a support and a sounding board. I owe my deepest thanks to Mr. C. Chandra Kumar, Mr. Vashist senior Public Relation Officers, of Indian Airlines Corporation and Prof. Noorul Hasan, Librarian, Maulana Azad Library, A.M.U., Aligarh, for their cooperation and valuable support. I am particularly thankful to Syed Asghar Ali (cousin), Mr. Gazenferullah, Mr. Jamshed, Mr. Shamsul ola, Mr. Riaz Hasan and Mr. Shamim for their help and encouragement by one way or other. I would fail in my duty without expressing thanks to Mr. Rashid Hussain and Mr. Ali Hussain, Staff of the Seminar Library, Department of Commerce, A.M.U., Aligarh for their help and cooperation. On the home front, I express my deepest sense of gratitude towards my parents, Mr. Ali Hussain and Mrs. Hasmun Nisha, for their teachings of values which they inculcated in me from childhood. I am, what I am because of their constant encouragement and building up of my self-esteem. My younger brother, Mr. Rustam Ali (Munna), my brother in law, Mr. Mohd. Rizwan, and my two sisters, Shahnaz Khatoon and Nargis, were encouraging and helpful in ways that words alone cannot express. I feel equally obliged to acknowledge the immeasurable amount of gratitude, I owe to my life Companion Shabnam Naheed who has mutely suffered the sweet pangs of predicament and survived the arduous task of living with the discontent which the work like this dissertation creates. Needless to say, expressions of appreciation (and sympathy) are long overdue. Special thanks are also due to my parents in laws, Mrs. and Mr. Mohd. Rojid, to my brother in law, Mr. Mohd. Asghar Ali, to Miss Firdous, to Miss Nasara and others for their warm encouragement and valued support. VI I would like to take this opportunity to thank and pay my respect to my grand mothers, Mrs. Kaniza and Mrs. Jipcchi. Last but not the least, I am thankful to Mr. Owais Ahmad M/s New Micro Services Centre, 5-Gulmarg Complex, Anoop Shahr Road, Aligarh for his doing the word-processing with ut-most care and diligence. (SHAUKAT ALI) ALIGARH VII PREFACE Air transport is one of the most important infrastructures for the alround development of a nation. Air transport for public use is steadily growing in size and importance. It has already attained a place in the national life that directly influences the innumerable national projects and industrial activities, which themselves are rapidly expanding to the general benefit of the whole population. In so vast a country as India with enormous projects utilising several hundred million rupees each, civil aviation when measured beside these giant national and industrial projects is no doubt a small undertaking. Nevertheless, the Indian Airlines Corporation with a fleet of nearly 59 aircraft is by no means a small domestic airlines when compared with operations in other countries. Perhaps the most vital influence on the future of aviation in India is the little realised fact that the face of India and also the pattern of her industrial life are both changing. Today the nation is racing towards massive industrialisation and economic liberalisation. All this means that the tempo of national life is mounting up. These hives of activity are urgently seeking ways and means to increase VIII their production and to capture the markets for their products. They have to complete with rival interests both foreign and Indian, so there is no time to be slow on the way side when making a sales tour or searching for - raw-materials to keep the factories busy and the workers employed. Aviation in the form of commercial air transport supplies the fast communications essential to the success of our national industries. Civil aviation renders the national industry incalculable service. It speeds up production, trade and traffic in such a way that no other service can offer. Prior to two world wars, the foreign rulers of India did not give desired attention for the development of air transport in India. The history of air transport development during the British rule is the history of suppression and frustration. The government of British India's interest in the development of Internal Commercial air transport was more need based than anything else. But atlast the dark cloud parted, and after the end of World War II there has been considerable expansion of civil air transport services in India. The govt, of India has been making strenous efforts to develop and spread Indian airlines. And with the policies of liberalisation, privatisation and globalisation, there is a very bright future ahead for the corporation. IX A powerful and forceful civil aviation can bring national prosperity, it sets a high leval standard of efficiency in engineering which is an example to other industries. Engineering advances and practices used in aviation today influence all branches of engineering tomorrow - that means national progress. Air transport is the spearhead of national development, a nation with a healthy civil aviation will automatically have a fine Air Force and a prosperous industrial life. It is in the context of this significance of air transport that this dissertation would focus on the working and organisation of the Indian Airlines Corporation with a view to depict the performance of this corporation.
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