Wednesday, October 17, 2018

Spike in operational costs, fierce competition make Air India turn around path more difficult: Pradeep Singh Kharola

Air India's turn around efforts have become more difficult with overall increase in operational expenditure and fierce competition, its chief Pradeep Singh Kharola said as he emphasised the need to generate revenues in every possible manner to "stay afloat".
The government is also working on ways to bolster the national carrier, which is financially stressed and is estimated to have a debt burden of more than Rs 50,000 crore.
"Our path towards turnaround has become more difficult with the market throwing fresh challenges by way of rising fuel costs, a volatile currency and overall increase in operational expenditure - besides, of course, fierce competition," Kharola has told employees.
In a message on the October issue of 'Samvaad', a newsletter for employees, Kharola said airlines around the world are going all out to adopt strict control over expenditure and increase efficiencies.
Rising oil prices have been hurting the airlines industry and last week the government cut the excise duty on jet fuel to 11 per cent from 14 per cent. Fuel costs account for a major chunk of an airline's operational costs.
17/10/18 PTI/Economic Times

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