New Delhi: Debt-burdened Air India will look to reduce costs by Rs1,500 crore and boost revenues by Rs1,200 crore as part of its restructuring effort, even as the government will infuse equity into the airline over the next few years, the Rajya Sabha, India's upper house of parliament, was informed on Tuesday.
The airline's restructuring plan has been broadly divided into three phases of 0-9 months, 9-18 months and 18-36 months. The restructuring plan takes into consideration operational efficiency, product improvement, organisation building and financial restructuring.
The information was supplied to the Rajya Sabha by civil aviation minister, Praful Patel, through a written statement.
According to Patel, the plan also envisaged manpower cost rationalisation, fuel management, route profitability enhancement and non-traffic revenue enhancement.
The statement also revealed that Air India had rescheduled delivery of three Boeing 777-300ER aircraft beyond 2010 and 27 Boeing 787 aircraft beyond contracted delivery period commencing April, 2011.
The airline also proposed to lease out three new Boeing 777-200L R aircraft.