MUMBAI, June 18: Stung by heavy losses despite the failure of its competitors in the private sector, Indian Airlines has begun an audit programme to review project cost overruns, receivables management, manpower utilisation and inventory management.

According to IA officials, the airline hopes to cut its losses substantially by tightening up its internal review methods. Deadlines have been fixed for various departments to present status reports and recommend measures for improvement.

IA's credit management policy will be subjected to a thorough review to ensure that parties owing money to the airline pay up on time. Various departments of the airline have been asked to submit their reports by end-September.

The airline is also reviewing projects undertaken during the last three years in order to identify the areas of delay which resulted in time and cost overruns, etc. The process is expected to be completed by November. The airline is also subjecting its inventory management to audit in order to determine the existing and desired levels of inventory so that there is no blockage of funds in equipment.

After IA transferred its Boeing aircraft and some routes and outstations under the care of a subsidiary, Alliance Air, the airline is considering redeployment of manpower. Various department heads have been asked to review deployment of personnel and submit its report by end of January next year.

According to a statement of objectives prepared by IA's audit department, it will complete review of the airline's flight information dissemination system by the end of June. Attempts will be made to identify shortcomings in IA's flight information management `so that prompt and correct information is disseminated to our valuable clientele', the statement said. The audit department will collect information from various departments and recommend improvements.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.