Utilisation of seat capacity by AIL Sample Clauses

Utilisation of seat capacity by AIL. Air India operates flights to 33 countries as per summer 2016 schedule. Audit noticed under- utilisation of allocated traffic rights by Air India/Air India Express (AIE) (in summer of 2016) in 20 countries, (details are at Annexure -6). Audit noticed the following issues: • Air India/Air India Express had utilised 100 percent of the allocated capacity vis-à-vis 13 countries (Oman39, Kuwait, France, Germany, Italy/spain, South Korea, Hong kong, Australia, Sri Lanka, Austria, Kazakhstan/Uzbeskistan, Ras-Al-Khaimah, Dubai) Yet, the Company made no efforts at enhancements of these allocations to provide for future enhancements in capacity despite the significant increase in fleet size following procurement of aircraft. • The utilisation of allocations by Air India/Air India Express was ‘nil’ for seven destinations i.e. Canada, Bangladesh, Iraq, Kenya, Malaysia, Thailand, Sri Lanka. The utilisation was less than 50 percent of bilateral entitlements in respect of Abu Dhabi, Bahrain, Kuwait, Russia and Singapore. • In the India-Oman40 Sector and in India –Qatar sector, MoCA withdrew 540 seats (March 2015) and 2615 seats (September 2015) respectively from AIL’s allocation and transferred it to Indigo airlines due to non-utilisation of allocated seats by AIL. Management replied (02 February 2016) that the observations are factual and at a future date if AIL or its subsidiaries require any further increase in entitlements due to induction of capacity, the Government would be willing to give AIL/its subsidiaries entitlements from the balance available or by increasing the quota for both sides. MoCA (02 September 2016) too has concurred with the views of management. Audit observed that bilateral entitlements could not be fully utilised by AIL. This resulted in AIL forgoing its allocated capacity in favour of other private airlines in the India-Oman and India-Qatar sector.
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