Flight rationalization, cutting costs part of restructuring

Air India will focus on increasing non-stop flights to the lucrative regions of West Asia and South-East Asia, discontinue most of its multi-stopover flights to increase its market share, streamline operations, and start short-haul flights concentrated around key metros using smaller aircraft.
All these are part of the airline’s restructuring plan after its merger with Indian. Consulting firm Accenture, appointed by the government as an adviser to the merger, has helped create the plan.
The new international route network, which will roll out for flights to and from Delhi and Mumbai from 1 August onwards, is aimed at rationalizing the overlap in routes between the two merging firms, Air India Ltd and Indian Airlines Ltd. The elimination of overlapping flights, code sharing and transferability of tickets in these two regions alone is expected to result in savings of Rs187 crore annually, according to Accenture. The merger will create Asia’s fourth largest airline by fleet size.
The restructuring coincides with the civil aviation ministry’s possible decision to open the international market to more private carriers from India. A review on opening routes in West Asia to other private carriers will likely come up in December.
26/06/07 Tarun Shukla/Livemint

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Categories: Air India Jun 2007, Indian Jun 2007