New Delhi, Nov 2: Dwindling yields and mounting losses of India's international carrier Air India is causing considerable concern to the ministry of civil aviation and top managers of the airline.

Despite measures taken after several reviews of Air India's working by civil aviation minister CM Ibrahim and secretary MK Kaw and recently inducted minister of state Jayanti Natarajan, revenue generation has not improved, according to informed sources.

The carrier has reportedly accumulated losses to the tune of Rs 500 crore in the past four to five years. Despite the minister's categorical warnings to its general sales agents to improve yield by 25 to 30% and several measures undertaken by the carriers they have not been able to improve the finances.

The overall yield of the carrier from some of the lucrative routes like UK, USA, CANADA and JAPAN has gone down. The most shocking fall in yield is from the united kingdom, where revenue has gone down by 36.7% as per the published figures of Air India's commercial department.

The reduction in yield for the year 1996-97 was also noticeable in the US, Canada, Japan routes where it has registered a fall of 15 to 17%. On condition of anonymity, a senior official of Air India said not a single general sales agent or consolidator had improved his yield by 25 to 30%, stipulated by the carrier in September 1996.

Ibrahim had directed the carrier to warn all the general sales agents and consolidators in September, 1996 to improve their yield by 25 to 30% by December, 1996 or face removal or cancellation of their contract. But nothing seems to have moved because of a climate of political instability in the country.

However, their is substantial rise in the outward traffic from India and the agents in India improved their yield and met the targets given to them.It is reliably learnt that Ibrahim had taken a serious view of Air India's non-performance and has directed the top management to go ahead with the appointment of consolidators in the united states without fear as per the clearances given by the American European and expert committees of Air India.

The sources were of the view that certain vested interests, who had been carrying on a campaign against air India to prevent the appointment of consolidators in the united states, were in collusion with certain key officials of the carrier.

However, the ministry has taken a firm view that the carrier should proceed according to the panel cleared by the expert committee and any attempt to scuttle or change would attract unnecessary investigations and motives. The second most important issue before the carrier is the acquisition of medium capacity long range (MCLR) aircraft to augment its fleet capacity and be in a position to compete with middle sized or mega carriers. The short listed planes now in the race are Boeing-777, Airbus 340 and Mcdonald Dougas MD-11, a company now acquired by Boeing.

The clear cut instructions given by the minister is to go by the recommendations of the in-house aircraft acquisition committee. The recent change in the management has given hopes that things will improve for the new management and long pending issues will be resolved soon.However, the top brass of the carrier is wary of taking any initiative as they fear that an inquiry might be held after the decision is taken by the management.Both the ministers, Ibrahim and Natarajan, have advised the officers to follow the official procedures and take decision without fear and favour.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.