Air India plans to cut flights on local, global sectors

Mumbai: National carrier Air India is likely to cut flights on nearly a dozen unprofitable domestic and international routes. The airline is currently reviewing its yields across routes in an attempt to cut losses, according to a senior airline official who did not wish to be named.
The Srinagar-Dubai route, which has a load ranging from just 20 to 40 passengers, is among those that may be scrapped. The Delhi-Raipur route, on the other hand, could now operate with a relatively smaller turbo-prop aircraft. In the international segment, Air India may reduce the frequency of flights to New York and Los Angeles.
The official said a team of senior executives was figuring out routes where flights needed to be rationalised, said the official, adding the airline will soon submit these plans to a committee comprising government officials. Once it is approved, the panel will periodically review Air India’s progress. Air India flies 155 aircraft to 70 destinations within the country and 47 outside India. The airline is also considering the option of outsourcing some services like its canteen, where about a 1,000 people are employed.
An Air India spokesperson said, in an emailed reply to ET, that the air-line will revert once a decision is taken. He added there were no plans to pull out Air India Express’ overseas flights.
16/07/09 Mithun Roy/Economic Times

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Categories: Foreign Jul 2009, NACIL Jul 2009