India’s national carrier Air India, which has been struggling financially, expects to considerably narrow its operating losses in fiscal 2015, believing it will carry more passengers and reduce costs as a result of restructuring its operations, a senior company executive said.
Air India hopes to do better in the current financial year despite the imminent arrival of new entrants like AirAsia India and a yet-unnamed airline that is a joint venture between Tata Sons and Singapore Airlines. It remains to be seen how Air India will manage to garner a greater share of passenger traffic in the face of increased competition and an aggressive fare war playing out in the Indian aviation sector.
Competitors like SpiceJet, Indigo and GoAir have slashed fares by as much as 35%, in some cases since the beginning of the current calendar year, to woo passengers.
The Air India executive, who spoke on condition of anonymity, said the carrier was expected to post an operating loss of R1,235 crore in 2014-15, versus R2,012 crore in 2013-14. The net loss of the airline is also estimated to come down to R4,346 crore by the end of fiscal 2015, from R5,388 crore last fiscal.
03/06/14 Rhik Kundu/Financial Express
To Read the News in full at Source, Click the Headline
Air India hopes to do better in the current financial year despite the imminent arrival of new entrants like AirAsia India and a yet-unnamed airline that is a joint venture between Tata Sons and Singapore Airlines. It remains to be seen how Air India will manage to garner a greater share of passenger traffic in the face of increased competition and an aggressive fare war playing out in the Indian aviation sector.
Competitors like SpiceJet, Indigo and GoAir have slashed fares by as much as 35%, in some cases since the beginning of the current calendar year, to woo passengers.
The Air India executive, who spoke on condition of anonymity, said the carrier was expected to post an operating loss of R1,235 crore in 2014-15, versus R2,012 crore in 2013-14. The net loss of the airline is also estimated to come down to R4,346 crore by the end of fiscal 2015, from R5,388 crore last fiscal.
03/06/14 Rhik Kundu/Financial Express
