Air India to cut loss-making routes

New Delhi: Air India may cut some of its loss-making routes under a new business plan it has worked out, sources in the civil aviation ministry said on Tuesday.
"We expect either a cut in frequencies or diversion of some of the very heavy loss-making services under a new business plan that has been worked out for the airline," the sources told IANS.
"We can no longer afford to continue on routes which do not even pay for the operation's fuel cost."
The move will lead to a cut the required strength of pilots and aircraft that ply on these routes.
According to a study done by the airline, only two operations out of the 175 routes flown by the airline recovers the complete cost of the flight. In the 173 routes, the airline loses money either in the form of forgoing fuel costs, cash cost or total cost.
05/06/12 IANS/Economic Times

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Categories: Air India Jun 2012