AI to tap biz chambers for turnaround

Ahmedabad: Troubled state-owned airline Air India is reaching out to business chambers in nonmetros with proposals to start intra-state services.
The airline is reeling under Rs 19,000-crore debt and chairman Arvind Jadhav is now tapping business travellers by introducing 40-seater planes on routes within states. The airline could also take in state governments as equity partners for regional services.
"Efficiency and marketing will be key factors for a turnaround," Jadhav told Gujarat Chamber of Commerce ; Industry members on Tuesday evening. The chairman viewed Gujarat, Kerala, Tamil Nadu and Punjab as promising states for air-services .
People prefer to drive down in Gujarat known for its expressways, toll roads and infrastructure . However, a Gujarat industrialist told the GCCI meeting that businessmen would prefer to fly from Ahmedabad to Surat instead of covering 250 km by car in four hours.
The Air India chairman has sought four preferred international and domestic routes along with the weekly potential of passenger and cargo load. The airline was keen to inter-connect Ahmedabad, Surat, Jamnagar , Bhavnagar, Rajkot, Surat, Bhuj and Kandla, Jadhav said, adding state governments of Madhya Pradesh and Andhra Pradesh have approached him for intra-state connectivity. He said, he would seek minimum traffic and relief in fuel taxes from interested states.
The Centre infused Rs 800 crore additional equity in Air India in 2009-10 and is expected to get Rs 1,200 crore from the government in this financial year. The civil aviation ministry has recommended Rs 2,000 crore additional equity infusion for the next fiscal.
30/12/10 Parag Dave/Economic Times

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Categories: Air India Dec 2010