PMO unimpressed with Air India's improved financial performance, sets new targets

Air India may have improved its financial performance on the back of low fuel prices, but the Prime Minister's Office (PMO) doesn't seem convinced about the carrier's revival story. The PMO has asked the airline to improve its performance on all fronts. It wants on-time performance improved to at least 85%, revenues increased by 10% and industry standards met on load factor, and has also asked the airline to carry out a proper survey before inducting new aircraft. Air India is set to report an operational profit for FY16, helped by INR27b of savings on account of lower fuel prices and a one-time gain of INR12b from the sale and lease back of Boeing 787 Dreamliners. But its revenue for the year is estimated to have increased only marginally even after accounting for the proceeds from the aircraft sale. <br/>