Air India blames everyone for its losses but itself

New Delhi: It’s like new wine in an old bottle. Air India has blamed everyone for its losses but itself.
The civil aviation ministry recently conducted a detailed study on international and domestic routes which are non-profitable for the airline. Interestingly, the reasons for the poor performance, as given by the airline, are lack of freedom in deciding aircraft deployment; foreign carriers getting multiple points of access within India and carrying away traffic; and Indian private airlines concentrating on Delhi International Airport as an international hub.
Historically, AI had a monopoly over all routes until liberalisation kicked in and it is the influx of competition in the form of foreign and domestic private carriers which AI has been unable to handle. The study found that Air India is making significant operational losses due to a “huge” mismatch between the aircraft it flies and the sectors it operates in.
16/08/12 Sindhu Bhattacharya/First Post

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Categories: Air India Aug 2012