High employee per aircraft ratio hits Indian Airlines

Mumbai: Excess staff and low utilisation of aircraft are taking a toll on the revenues of Indian Airlines.
The airline's cost per available seat kilometer (ASKM) is the highest among all full service carriers operating in domestic routes in India.
According to data available for the fiscal ending 2005, the cost per ASKM of Indian Airlines stood at Rs 5.20, while the revenues per ASKM stood at Rs 5.30, indicating that Indian Airlines earns a paltry 10 paise per ASKM.
Interestingly, Jet Airways' cost per ASKM is Rs 3.40 as against its revenue of Rs 3.80 thereby earning 40 paise per ASKM. Even the recently acquired Air Sahara is ahead with a cost per ASKM of Rs 3.30 and revenue of Rs 3.60.
Industry experts feel that high number of employees per aircraft is directly affecting Indian Airlines' operating profit. With 67 aircraft in the current fleet of Indian Airlines, its aircraft-employee ratio is pegged at 1:276, much higher than Jet Airways' 1:215. The ideal ratio should be anywhere between 1:130-170, experts added.
24/04/06 Neelasri Barman & Sagar Malviya/Financial Express

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