New Delhi: State-owned carrier Air India targets to cut down its number of loss-making routes substantially and reduce them to 15% of its overall network by the end of the current financial year.
The national carrier, which operates 480 daily flights in both international and domestic sector, had brought down its loss-making routes from 69% of total routes to 25% in course of the last financial year.
A senior official at Air India said, “We were not meeting cash costs in 69% of our network a year back. This has now reduced to 25%. While there would be flights in which we would not be able to generate operational profits, we are looking at meeting cash costs on 85% of our network by the end of this financial year.”
The official explained that the losses were due to a mismatch between the aircraft type deployed and demand on the route that had resulted in making operations unviable.
14/05/13 Sharmistha Mukherjee/Business Standard
