AI shifting Gulf services to AI Express saves Rs 113 cr anually

New Delhi: National carrier Air India shifting most of its Gulf-bound services to low-cost Air India Express has seen the airline saving an estimated Rs 113 crore per annum.
The national carrier has been operating flights by the erstwhile Indian Airlines and Air India with twin- configuration of Business Class and Economy, while the low- cost subsidiary was operating only economy flights. The three carriers separately were not only competing with other Indian and foreign airlines on lucrative Gulf routes like Dubai, Oman, Doha and Bahrain but also among themselves.
Therefore, the Civil Aviation Ministry felt the need to rationalise the Gulf routes and have more full-economy flights operated by Air India Express, while slashing those of the full-service carrier which were suffering major losses due to stiff competition. Under the rationalisation plan, the number of flights operated by Air India Express to the Gulf were increased substantially as the total number of flights per week rose by 1,024 per week.
06/11/09 Press Trust of India/Business Standard

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Categories: Air India Budget Nov 2009, Air India Domestic Nov 2009, Foreign Nov 2009, NACIL Nov 2009