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IA- Keeping Social Commitments
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 Indian Airlines Keeping
Social Commitments To The North-East
By Kalyan Majumder, Regional Director (East), Indian Airlines

On Eastern Region
Indian Airlines, Eastern Region has twenty stations of which 15 are domestic and 4 are foreign stations, in addition, Darjeeling is an off line station. On an average 47 flights take off per day in the region, of which alone 18 flights originate from Calcutta which operates to 25 domestic and 5 foreign stations in IA network. During 1999-2000, Eastern Region carried 15.12 lakh passengers and 17,202 tonnes of cargo. The region generated gross traffic revenue of Rs.563. 76 crores during the same year. Gross passenger sales amounted to Rs.533.17 crores, while cargo sales generated Rs.26.59 crores and mail revenue stood at Rs.4 crores. Eastern Region contributes around 20 percent towards total passenger traffic and about 14 percent towards traffic revenue in Indian airlines. The region has 221 passenger sales agents and 36 cargo sales agents in domestic stations of which 103 passenger and 28 cargo sales agents are in Calcutta. In addition, the region has 38 passenger and 3 cargo sales agents at foreign locations and 2 GSAs who handle our business in Bangkok and Yangon.

On Social Obligation
In keeping with its social commitments to the North East and other remote parts of the country, Indian airlines operated 37 additional flights in the financial year 1999-2000, to stations in the North East, Bhubaneswar and Port Blair. This included 4 flights operated as relief flight to Bhubaneswar in the aftermath of the Super Cyclone that hit Orissa in September 1999. In the current financial year also Indian Airlines operated 46 additional flights to various destinations to meet specific problems faced by the public. In addition, 7 additional flights were operated to Bagdogra to meet the transportation needs of the public in the wake of the floods, which affected large parts of West Bengal. Further 15 additional flights were operated during the Puja season.
Almost all the stations in Eastern Region suffer inclement weather for prolonged periods, resulting in delay to flights. Among the airports in the Eastern Region, only Calcutta, Patna, Bhubaneswar and Guwahati have night landing facilities. The non-availability of night landing facilities in other airports imposes severe restrictions on IA flight operations in the region. Our flights to NE are not run on commercial considerations as the fares to NE destinations are much less as compared to similar sectors elsewhere on IA network.

Present Scenario
Indian Airlines came into being with the enactment of the Air Corporation Act 1953 and was entrusted with the responsibility of providing air transportation within the country as well as to the neighbouring countries. IA was given the task to assimilate various dimensions of 8 private airlines, which were merged to provide well co-ordinated, adequate, safe, efficient and economical air services. Indian Airlines began its operations on 1st August, 1953. Modernisation of fleet and expansion followed as a continuous process.
IA registered a compounded passenger traffic growth rate of 10.4 percent per year during 1960-1988. The highest growth rate achieved in one year was 21.6 percent in 1972- 73. In mid 1990, the Government announced the policy of liberalisation in domestic skies by allowing Air Taxi Operators. This followed the entry of many Air Taxi Operators during 1992-93. This had profound adverse impact on IA both financially and operationally. On 1st March 1994, IA became a Public Limited Company. During the last three financial years, IA made profits as follows:

Financial Year      Rs. (in crores)
1997-98                 47.27
1998-99                 13.12
1999-00                 45.27
          2000-01                 25.00(Estimate)

Based on the announcement made by the Finance Minister in his Budget speech 1998-99, the Government decided to initially disinvest 51 percent equity in IA of which 26 percent would be given to a strategic partner and the remaining 25 percent of equity to be offered to the employees, financial institutions and the public.

IA- Keeping Social Commitments
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