TNN | May 29, 2012, 02.29AM IST
http://timesofindia.indiatimes.com/business/india-business/Air-India-may-prune-routes-reduce-pilots/articleshow/13615808.cms
http://timesofindia.indiatimes.com/business/india-business/Air-India-may-prune-routes-reduce-pilots/articleshow/13615808.cms
NEW DELHI: Loss-making Air India may soon go the Kingfisher way by severely pruning flights and reducing its requirement for pilots, 400 of whom have been on strike for three weeks now.
With a majority of its routes making huge losses and some not even covering the cost of fuel, aviation minister Ajit Singh on Monday set up a panel to examine the network and recommend how the fortunes of loss-making ones could be turned around.
Importantly, the panel will recommend if some routes simply have no hope of becoming profitable or if operations on certain types of aircraft cannot be run economically. "Such planes will be phased out and the perennially loss-making routes will be shut down. The biggest cut could come from international operations. This will reduce the requirement for pilots," said sources, adding that the panel has to submit its report in a week.
This could mean a significany downsizing of AI's operations. TOI had last November reported on a study done by the management that showed the airline was able to recover costs only on two of the 175 routes operated by the erstwhile AI and Indian Airlines. In rest 173 routes, the airline is either not able to recover fuel cost, cash cost or the total cost.
Importantly, the panel will recommend if some routes simply have no hope of becoming profitable or if operations on certain types of aircraft cannot be run economically. "Such planes will be phased out and the perennially loss-making routes will be shut down. The biggest cut could come from international operations. This will reduce the requirement for pilots," said sources, adding that the panel has to submit its report in a week.
This could mean a significany downsizing of AI's operations. TOI had last November reported on a study done by the management that showed the airline was able to recover costs only on two of the 175 routes operated by the erstwhile AI and Indian Airlines. In rest 173 routes, the airline is either not able to recover fuel cost, cash cost or the total cost.
The study showed that eight flights like Amritsar-Delhi-London, Delhi-Dubai and Amritsar-Delhi-Toronto are not even able to make enough money to pay for the fuel expense.
No comments:
Post a Comment