Thursday, September 21, 2017

Air India plans to rationalise routes & contracts

Air India's new chairman and managing director, Rajiv Bansal, has outlined his plans to help turn the national airline around ahead of its planned privatisation. Speaking with The Press Trust of India, Bansal has said that routes operated by the carrier and its subsidiaries – Air India Express (IX, Mumbai Int'l) and Alliance Air (India) (9I, Mumbai Int'l) – will be rationalised, to avoid competition within the group and cut costs.

"We have to ensure that we don't compete which means that it is not that Air India or Air India Express withdraws but we can work with the timings. Wherever the passenger loads are not justified, either Air India or its subsidiaries can withdraw," Bansal said.

He noted that particularly for short-haul flights, Air India should "concede space to Alliance Air".

In a separate interview with the Financial Express, Bansal said that he is also looking to optimise contracts with vendors and suppliers. Bansal's focus is on small but steady progress, with savings to be pursued no matter how small.
21/09/17 ch-aviation