Saturday, December 15, 2018

Air India Pilots suggest expansion of network to make it profitable

As Air India has a target of improving its numbers by Rs 2,000 crore annually through savings and increase in revenue, the pilots’ union has sought the aviation minister’s intervention and asked for expansion of the national carrier’s network to become profitable.
In a letter to aviation minister Suresh Prabhu, the Indian Commercial Pilots’ Association (ICPA) highlighted that the national carrier has increased its network domestically by only 50 flights in the past 10 years.

“All the private carriers have together amongst them hundreds of aircraft on order to keep themselves at par with the demand of ever growing Indian aviation market with a futuristic view of at least the next decade. But we have remained quite stagnant in the domestic market. We still continue to operate the odd 350 flights daily domestically from about 300 flights 10 years ago, whereas IndiGo has gone from 0 to over 1,000 flights a day in the same period,” said a letter by ICPA and seen by ET.

It added that the load factor across all Air India flights is very high, but market share is slipping because of want of additional capacity.

“Air India's market share has dropped from 19.8% in January 2014 to just 11.8% in September 2018 which incidentally is the lowest market share ever for Air India. We have just five more A-320 aircraft to join us out of the 27 ordered on lease about 3 years back,” the union said.
15/12/18 Mihir Mishra/Economic Times
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