New Delhi: State-owned Air India (AI) aims to substantially cut the number of routes not meeting variable costs, to reduce these to 19 per cent of its overall network by the end of the current financial year.
The carrier, which operates about 480 daily flights in the international and domestic sectors, had brought down the number of routes not meeting variable costs to 38 per cent of its network by the end of 2013-14, from 60 per cent.
A senior official said, “We have completely withdrawn flights not meeting ATF (aviation turbine fuel) costs. While there would be flights in which we would not be able to generate operational profits, we are looking at meeting cash costs on 81 per cent of our network by the end of this financial year.”
Chairman and Managing Director Rohit Nandan is daily monitoring the route economics. The analysis is also being done at the board of directors every week.
AI registers variable cost losses on 19 routes, six of which are international ones. The domestic ones include Mumbai-Kolkata and Delhi-Bangalore; the international ones include Delhi-Sydney and Delhi-Milan.
16/09/14 Sharmistha Mukherjee/Business Standard
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The carrier, which operates about 480 daily flights in the international and domestic sectors, had brought down the number of routes not meeting variable costs to 38 per cent of its network by the end of 2013-14, from 60 per cent.
A senior official said, “We have completely withdrawn flights not meeting ATF (aviation turbine fuel) costs. While there would be flights in which we would not be able to generate operational profits, we are looking at meeting cash costs on 81 per cent of our network by the end of this financial year.”
Chairman and Managing Director Rohit Nandan is daily monitoring the route economics. The analysis is also being done at the board of directors every week.
AI registers variable cost losses on 19 routes, six of which are international ones. The domestic ones include Mumbai-Kolkata and Delhi-Bangalore; the international ones include Delhi-Sydney and Delhi-Milan.
16/09/14 Sharmistha Mukherjee/Business Standard
