‘Expect Operational Profits Of Rs 100 Crore’

Air India chairman and managing director, Ashwini Lohani, is credited with the airline’s first operational profit in a decade. As chairman of the India Tourism Development Corporation earlier, Lohani was instrumental in the Unesco according world heritage status to the Mahabodhi Temple and the Darjeeling Himalayan Railway. Author of two books, one on steam engines and the other on management, Lohani has featured in both the Guinness Book of World Records and the Limca Book of Records for different feats. In a chat with BW Businessworld’s D.P. Sharan, Lohani talks about his aim to multiply the operational profits of Air India every year. Excerpts of the interview:

How is Air India competing with budget airlines?
That is a difficult question, but we have earned operational profit for the first time in ten years and have set a target to multiply this operational profit every year by eight to tenfold

What is the present operational profit?
The projected figure for operational profits for the 2015-16 financial year has not been ratified by the auditors so far, but I expect it to be over Rs 100 crore. It will turn out to be Rs 800 crore in 2016-17, Rs 1,500 crore to Rs 1,600 crore in 2017-18, Rs 2,500 crore in 2018-19 and so on.

How did perennially loss-making Air India earn operational profits for the first time in ten years? What strategies did you use?
Two factors worked in my favour. First, employees stood by me in my ‘crusade’ to restore the glory of the airline, their own survival too was obviously an overt interest.

Second and this is to the credit of the present government at the Centre I got all-out support from the government to deal with the situation. The present government at the Centre is quite supportive and has exuded complete confidence in me. I never find any interference in my work from the government.

Air India has now been able to earn operational profits. When will it be able to achieve a net profit too?
We have a huge debt burden of about Rs 52,000 crore. Unless this debt is paid off or written off, net profit will remain a far cry. I am trying to convince the government to evolve a way out to settle these debts with banks. The airline has received a turnaround package of Rs 30,000 crore only, when it is reeling under a debt of more than Rs 50,000. This is not justified.

Have you ever asked the government to waive the outstanding debt?
No. It is not possible for the government and I never press for a demand that is not feasible.

You are often called Mr Turnaround. Which achievements do you remember best?
Whether it is the Railways (which is my parent cadre), tourism or the airline sector, I have received the full support of my employees and that has been my big achievement. When I completed one of my stints with the Indian Railways at Patratu (now in Jharkhand), a garden there was named after me as a mark of honour to me. It was named ‘Ashwini Garden’.

When I handed over charge at the Madhya Pradesh Tourism Development Corporation, I was bade farewell by thousands of locals, who stood along the road. This love and affection of the people make me emotional and I feel elated as well. Besides, Page 45 of the CAG Report prepared by self-styled anti-corruption crusader and then CAG of India, Vinod Rai, speaks of my achievement. He appreciated my role as a divisional Railway manager (DRM) Delhi in the preparation for the Commonwealth Games.

The Guinness World Records for instance, has recorded that you obtained four simultaneous degrees in different branches of engineering and the Limca Book of Records mentions your achievement in running the Fairy Queen Express. Are you still associated with these pursuits?
Yes. I still run the Indian Steam Engine Society at Rewadi and deliver lectures on management and engineering at academic institutions of high repute, such as IIM and IIT.

Last but not the least, I don’t believe in showing off. I have recently declined to take bouquets and have even asked my employees to do so. I have also discouraged my officials and employees from hiring luxury taxi services and asked them to use cheaper modes of public transport instead.