Air India cuts operating losses by Rs1,179 crore in Apr 2010-Feb 2011
19 April 2011
Struggling state-owned carrier, Air India Ltd, may put out some good news soon saying it may have trimmed operating losses by Rs1,179 crore in the period April 2010 and February 2011. It may also report that average occupancy had risen on domestic and international routes and that staff were cooperating with the management, providing it with a whole host of cost-saving proposals, efforts that re crucial to its turnaround plan.
According to a report submitted by Air India to the ministry of civil aviation, it has lowered operating losses by Rs1,179 crore for the period April 2010 to February 2011. Operational losses on international routes have come down by Rs1,088 crore and that of domestic routes by Rs91 crore.
Seat occupancy for the same period was up at 66.4%, as against 64.9% in the corresponding period of the previous year. The average occupancy for domestic routes was 71.4% for the period under review (up from 70.2%) and international routes 65% (up from 63.5%).
Air India carried 11.87 million (35,560 passengers per day) during the period, representing a 9.3% rise over the corresponding period.
The report also says that Air India has received 190 proposals from employees to cut costs and increase revenue. These include suggestions such as including ads on boarding passes, fuel-saving measures and selling holiday packages.
These proposals have come in response to a request from AI chairman and managing director Arvind Jadhav.