Air India made Rs 1-cr profit a day under Y C Deveshwar

Air India made Rs 1 crore profit a day under Y C Deveshwar's chairpersonship in fiscal 1993. Deveshwar, who is stepping down as executive chairperson of ITC from next February, held the post of Air India chairperson during 1991-94. He was appointed by then civil aviation minister Madhavrao Scindia and succeeded Subhash Gupte who held officiating charge at that time.

Deveshwar's tenure in Air India was marked by improved profits and good management practices. He framed policies on succession planning and tried to bring focus on increasing corporate sales, say retired airline executives.

While Air India had been a profitable airline during the 1980s, its net profit doubled to Rs 333 crore in 1992-93 over the previous year. The following year also the airline clock a profit of Rs 201 crore, according to a parliamentary standing committee report on transport & tourism of 1999. " He announced Air India was making one crore profit a day during the airline's golden jubilee celebrations," recalls Jitender Bhargava, airline's former executive director.

Lower depreciation and lower finance costs had helped improve the profit during this period. Deveshwar tenure saw induction of Boeing 747-400 aircraft in the fleet, (then the biggest passenger jet liner) and saw a focus on growing sales and increasing efficiency.

"He was one of the best managing directors to serve Air India. He ensured that all departments were working towards a single goal of improving productivity and profitability and brought in three elements responsible for commercial success - frequent flyer programme, automated revenue management system and a hub and spoke model in partnership with Indian Airlines," recalls Michael Mascarenhas airline's former managing director.

"Mr Deveshwar lacked core airline business experience but was conversant with the hospitality business as ITC ran a successful chain of luxury hotels. He was conscious of passenger's needs and what was required to be done to stem the rot that had set in. He brought a host of good management practices...For instance he instituted the practice of succession planning within the airline. He would track positions and make sure that six months before a position fell vacant a person was identified and trained to occupy it...Aptitude mattered and so did attitude. This was a major departure from the past," airline's former executive director Jitender Bhargava writes in his book 'The Descent of Air India."

Air India