Thursday, January 16, 2020

Single GDS system, better aircraft utilisation help Air India cut expenses

New Delhi: Moving to a single global distribution service (GDS) platform for domestic ticketing, better utilisation of planes and new international flights in the last one year are some of the sources that are helping the disinvestment-bound Air India to earn more revenue and cut down expenditure during these tough times, according to senior officials.
The officials said that in 2020, single GDS system would help them save Rs 520 crore, operational profit from new flights will earn Rs 120 crore, and swapping small wide-body aircraft for a big one on the Delhi-London route will help them earn Rs 100 crore.
While Air India's net loss in 2018-19 was around Rs 8,556 crore, its current total debt is around Rs 80,000 crore.
Air India chief Ashwani Lohani on January 4 had said that "rumours" of the disinvestment-bound airline's shutdown are "all baseless", weeks after he told the Civil Aviation Ministry that the carrier's financial situation was "grossly untenable" for sustaining operations.
Meenakshi Malik, Director-Commerical, Air India, said on Thursday, "Till October 2018, Air India had contracts with all three GDS platforms - Travelport, Sabre and Amadeus - for domestic routes' ticket sales. It was costing us too much - around Rs 400 crore".
A GDS is a computer network system that allows travel agencies and websites to book tickets on any airline for a passenger.
"So, in October 2018, we decided to issue a tender to choose one GDS platform only for our domestic ticketing. Travelport won that tender," Malik explained.
From January 1 this year, Travelport is the only GDS that has an inventory of the national carrier's domestic routes.
16/01/20 PTI/Business Standard
To Read the News in full at Source, Click the Headline


Post a Comment