Friday, January 24, 2020

Air India cost-saving plan to save over $100mn a year

As the latest attempt to privatise Air India (AI, Mumbai Int'l) approaches, its management has introduced cost-cutting measures to strengthen the company's financial standing, senior officials at the carrier have told the Economic Times newspaper.

One initiative puts a larger aircraft on the Delhi Int'l-London Heathrow route and a smaller Dreamliner between Delhi and Washington Dulles, a move that will save about INR1 billion rupees (USD14 million) per year, they said.

According to the ch-aviation capacities module, Air India currently flies 14x weekly from Delhi to London, which consists of both a 7x weekly service with a B787-8 and 7x weekly with a B777-300(ER). It also operates to Heathrow 7x weekly from Mumbai Int'l, 4x weekly from Ahmedabad, and 3x weekly from Bangalore Int'l. To Washington, it currently deploys a B787-8, 3x weekly.

Another idea has been to move to a single Global Distribution System (GDS), Travelport, for domestic bookings since January 1, which will cut costs by an estimated INR5.19 billion (USD73 million) in 2020. The carrier also expects to save more than INR1.2 billion (USD16.9 million) with the launch of new destinations to strengthen its network of existing routes, the officials added.
23/01/20 ch-aviation
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