Saturday, March 10, 2012

With Kingfisher stuck in quicksand, Air India scripts a revival

New Delhi: Air India is once again trying to take wing. The loss-laden national carrier, which doesn’t even have enough money to pay salaries to its employees, has plans to increase total departures in the summer schedule (which begins from 31 March) to 405 per day against 380 in the ongoing winter schedule. It plans to introduce new flights to some lucrative destinations in the Middle East while withdrawing some.
Also, Air India has quietly begun “low-cost” operations on some domestic routes. Even as Kingfisher is stuck in the mud, Air India is scripting a revival.
The schedule restructuring by Air India comes even as a final decision on how many Dreamliners (Boeing 787s) it will buy is awaiting a decision from the Union Cabinet. The Dreamliner purchase has been mired in controversy since it was part of a decision on aircraft purchase by erstwhile Civil Aviation Minister Praful Patel – which has been questioned by the Comptroller and Auditor General.
A Cabinet Note being circulated by the aviation ministry early next week supports the purchase of all 27 Dreamliners, against an earlier advise to buy only 14 of them. Dreamliners are crucial to the airline’s turnaround since they are seen as ideal aircraft for medium-haul international routes.
10/03/12 Sindhu Bhattacharya/First Post
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