'AI dropped profitable routes'

Mumbai: Air India pilots claimed that the carrier gave away profitable routes even when they were making money on those sectors.
According to members of the Indian Commercial Pilots ' Association (ICPA), 34 routes from the southern region—most of them domestic and some to Middle-East countries—serviced by the former Indian Airlines were either withdrawn or temporarily cancelled. The decision to surrender the 34 routes and some more was taken after AI merged with erstwhile IA in 2007, and subsequently, the relinquished slots were taken over by private carriers.
Though the AI management claimed that the surrendered routes were either unprofitable or it was impractical to continue with those sectors after the merger , TOI found—after going through the list—that all the flights there operated with more than 70% load factor (passenger load + cargo). An AI source said of the 34 flights withdrawn, 10 operated with 85% passenger load and nine had 80%. Six flights had more than 90% load factor and one 100%. "Those could not have been not making profit," an AI official said.
01/05/11 Chinmayi Shalya/Times of India

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Categories: Air India May 2011