Alliance Air passenger load factor falls to 62%

Alliance Air passenger load factor falls to 62%
DEV CHATTERJEE

MUMBAI, JULY 24: Indian Airlines' loss-making subsidiary, Alliance Air is in for serious financial trouble. Its passenger load factor (PLF) --- number of seats per hundred that are sold --- has crashed to 62 per cent from 70 per cent following the crash of its Patna-bound aircraft. Alliance Air's loss is, however, turning out to be a boon for Jet Airways, which flies to most Alliance Air destinations. Passengers are shifting to Jet in their search for higher safety standards.

But officials say that Alliance's falling passenger load factor (PLF) has nothing to do with the Patna air crash. The low PLF is "seasonal," they said.

However, passengers and travel agents say Alliance Air's rivals are gaining rapidly due to adverse publicity following the accident. Says Shashi Sai, a Mumbai-based travel agent: ``Air passengers are preferring to fly by Jet Airways instead of Alliance Air. Most of the flights from Mumbai of Jet are going full. However, Alliance Air is struggling to fill in its seats.''

For instance, the Alliance Air flight to Mangalore from Mumbai goes half-empty but at the same time it's difficult to get a seat on Jet Airways. An Indian Airlines spokesman says the Mangalore-bound flight goes at below 50 per cent PLF due to the awkward timing -- 12.45 pm -- and not due to passengers' fear over safety. ``Passengers coming from the Gulf are taking early morning Jet flights instead of waiting for our flights,'' he adds.

Alliance Air flies to Bhopal, Bhuj, Gwalior, Hyderabad, Jaipur and Mangalore among other destinations. It also flies the late-night flight between Delhi and Mumbai. To break even, an airline must fill atleast 68 per cent of its seats, or it will make continuous losses. IA officials now hope that things will look up once new aircraft arrive for Alliance.

The average age of the Alliance Air fleet of 11 Boeing 737 aircraft is around 18 years while Jet's is around 3-4 years. Jet's been buying all brand new Boeing 737-400s aircraft since the last few years.

The perception that it is not a `safe' airline to fly by is so strong that passengers say given an option they will not fly by Alliance Air as it would be unsafe to fly by a 20-year old aircraft. ``I would prefer any airline which has safety and newer aircraft. I don't mind Indian Airlines' A-320 flights but Alliance Air is a complete no-no,'' says businessman Bharat Mehta, who flies to Hyderabad every week. Passengers say they feel safe flying with airlines which spend lots of time, money and energy on safety.

An official of the Essar Group says its entire staff flying to its Vizag steel plant shifted to Jet Airways recently even before the crash took place due to safety reasons. ``The day we knew we have an alternative we started flying by Jet Airways,'' Essar officials say. ``Alliance Air Boeings are unsafe and flying at odd hours,'' he adds

``I prefer to fly by private airlines as there is no other alternative. Alliance Air is a dangerous airline to fly by,'' adds R K Singh, who flies regularly to Bhopal.

``In Eastern India, we do not have much choice. Either, I've to fly by Alliance Air or take a overnight train journey to Bhubaneshwar from Calcutta as there is no flight by private airlines,'' says Susanth Misra, a Orissa state government employee.