Air India mulls plans for major rationalisations

The National Aviation Company India Ltd (NACIL), formed after the merger of Air India and Indian, is forming strategies to enhance the airline's operations and turn it into a profitable venture.
NACIL's major focus areas currently are rationalising commonly-operated routes, pricing structures and flight schedules. In addition, the merged entity is also rationalising accommodation facilities for cabin crew and staff, handling charges on commonly-operated routes, and general sales agents as well as fuel.
According to PK Gupta, NACIL executive director - sales and marketing, routes common to both carriers such as Singapore, Dubai, Kuala Lumpur, Bangkok and Muscat will be operated by a single carrier through better schedules and improved frequencies.
"By restructuring routes, excess capacity can be effectively deployed on other routes resulting in increased revenue. For example, prior to the merger, Air India used to fly Delhi-Shanghai via Bangkok. However, post merger, the Delhi-Shanghai flight becomes a direct flight, while the Bangkok flight is operated by Indian," Gupta told IANS.
09/05/08 Indo-Asian News Service/Hindustan Times

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Categories: NACIL May 2008