Saturday, March 21, 2020

Air India to renegotiate lease, hotel agreements; push cargo sales to maximise revenue

New Delhi: The government’s decision to put a blanket ban on international commercial scheduled flights is expected to severely hurt national carrier Air India, which sees nearly 60-70 per cent of its revenues from foreign operations. This has made Air India take a series of measures to mitigate the stress arising from the Covid-19 crisis, including beginning renegotiation of lease contracts, renegotiation of hotel agreements, reduction in salaries, and an aggressive push to increase cargo sales at a time when passenger loads are minimal.

“In the wake of recent global developments and the serious impact of COVID-19 pandemic, which has adversely impacted aviation industry both in the domestic as well in the international front there is an insurmountable dip in the revenue which calls for stringent measures to reduce our costs. All airlines have taken drastic steps to survive the current crisis and an urgent need is felt to take steps to curtail costs to mitigate the current financial crisis,” an Air India office order, listing 21 financial and personnel measures, noted.

On Thursday, the government announced that no incoming scheduled international commercial passenger aircraft shall be allowed to disembark passengers on Indian soil after 1:31 am of March 23 till March 29. The move will result in full cancellation of international flights to and from India.
21/03/20 Pranav Mukul/Indian Express
To Read the News in full at Source, Click the Headline


Post a Comment