Air India board wants 70%+ load factor on domestic flights

New Delhi: The board of directors of Air India, which met on Tuesday, has set some stiff targets for the ailing airline, to improve its financial performance.
Among the new targets being pursued is increasing passenger load factors (PLF), on the fleet of narrow body aircraft used for domestic operations, to over 70% and try to reach the same level of aircraft occupancy in international operations as well.
The board, which now comprises eminent India Inc personalities such as Anand Mahindra, Amit Mitra, Harsh Neotia etc, is looking at achieving profitability this fiscal, it has already projected doubled fuel savings to Rs 532 crore in the next 18 months besides various other operational measures to cut costs. Load factors have already improved over the last three months and in April alone, AI collected Rs 130 crore more than April 2009.
These measures follow the board’s decision to also completely restructure the airline’s debt and working capital requirements, through a mix of government’s equity infusion and comprehensive loan restructuring.
21/05/10 Sindhu Bhattacharya/Daily News & Analysis

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Categories: NACIL May 2010