AI-Indian to gain Rs 187 cr a year through rationalisation

New Delhi: Targeting to present a “unified face” to the world by August 1, when they operate an Indian carrier’s first non-stop flight between Mumbai and JFK airport in New York, national carriers Air India and Indian (Airlines) are eyeing benefits to the tune of Rs 187 crore annually through route rationalisation and common pricing in markets where they overlap, operating feeder flights on hub and spoke model, through check-in and seamless transfers.
Estimates suggest that only route rationalisation in markets like Kuwait, Oman, Singapore, Bangkok, Kuala Lumpur, Hong Kong and Tokyo is likely to result in synergies worth Rs 124 crore annually.
Increasing the number of non-stop flights, reducing multi-stop flights, increasing weekly frequencies for some flights and adding new flights for Kuwait is expected to yield a net benefit of Rs 60 crore annually (42 crore from freed up capacity and 18 crore by adding additional capacity).
Route rationalisation on Bangkok, Kuala Lumpur, Hong Kong and Tokyo routes is likely to yield synergies worth Rs 34 crore. Presently, there are around 99 overlapping flights between Air India and Indian Airlines. The new merged entity hopes to gain Rs 54 crore annually through operating feeder flights on a hub and spoke model.
29/06/07 Raghavendra Rao/Indian Express

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Categories: Air India Jun 2007, Indian Jun 2007