Thursday, September 28, 2006

Service airlines go for low-cost route

Mumbai: Full-service carriers, while retaining the frills, have embarked on a drive to cut costs, particularly in the areas of fuel usage, ticket distribution and salary, as they take on the burgeoning low-cost carriers. Airlines such as Jet Airways, Indian Airlines and Air Sahara have all embraced “low-cost” measures.
“Indian Airlines has started strict monitoring of fuel usage. The airline saved more than Rs 150 crore through these measures last year,” said an executive with the state-owned airline.
Jet Airways is negotiating better rates for maintenance of aircraft and increasing productivity. It is also targeting a lower employee-aircraft ratio. The airline is pushing online ticket sales, which is expected to reduce its selling and distribution costs.
Air Sahara has also been cutting costs by turning five of its aircraft, flying to non-metro destinations, to single configuration like low-cost carriers.
28/09/06 P R Sanjai/Business Standard
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