Monday, September 18, 2017

AI plans cost management blitz, aims to save around Rs 500 crore

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Copenhagen: National passenger carrier Air India plans to "re-negotiate" its agreements with vendors and suppliers to save operational costs of up to Rs 500 crore ($780 million) with in the shortest possible time period. The ambitious short-term target to be achieved in 12-weeks time has been set by the company's new Chairman and Managing Director, Rajiv Bansal. "There is always scope to cut and manage costs. My focus is to manage cost but not by inconveniencing the passengers in anyway," Bansal told IANS in an exclusive interaction soon after Air India's inaugural New Delhi-Copenhagen non-stop flight landed here.
"Internally, we are looking to optimise our leases with our vendors and services providers ... renegotiations might be needed to fully optimise our agreements," he said.
The mega cost saving plan envisages at least "one major initiative per week" to be taken on expenditure optimisation.
The cost savings measures which have been identified range from anywhere between Rs 10 crore and a maximum of Rs 50 crore per year.
"We must continue to chip away at the cost factor... My approach is to take one important initiative a week in this regard. It may be for as low as Rs 10-20 crore," Bansal explained.
18/09/17 IANS/Sify