Panel to rationalise Air India's loss-making routes

New Delhi: Civil Aviation Minister Ajit Singh on Monday constituted a four-member panel to examine Air India's route profitability, even as the strike by pilots of the national carrier continued for the 21th day, taking its losses to more than Rs 300 crore (about $55 mn).
The decision came after the minister reviewed the status of flights on domestic and international routes which are non-profitable.
According to a ministry official, non-profitable routes are those in which operational costs are not recovered or operational costs are recovered but total costs are not.
The official said that the committee will analysis criteria for withdrawal of routes, and economics of scale of the sectors being operated. Meanwhile, there was no headway in the strike, leading to continuing losses.
29/05/12 IANS/IBN Live

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Categories: Air India May 2012