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Govt takes steps to cut Air India losses

Staff reporter, New Delhi
02/08/2017   0 Comments

The Government had approved a Turnaround Plan (TAP) or Financial Restructuring Plan (FRP) for operational and financial turnaround of Air India.  
The Plan provides equity infusion of Rs 30,231 crore upto 2021 subject to achievement of certain milestones.  

The Company has made substantial progress in both operational as well as financial areas as per TAP Milestones. As a part of the turnaround strategy, the company, with the overall support of the government, has initiated a number of steps in order to cut costs and losses. 
These steps  include –  1) Route rationalization of erstwhile Air India (AI) & Indian Airlines (IA) route and elimination of route network involving parallel operations. 2) Rationalization of certain loss making routes and 3) Enhanced utilization of new fleet resulting in production of higher Available Seat Kilometers (ASKMs).  
During the last three years Air India initiated a number of steps including various phase market initiatives. The steps include – 1) Introduction of New Routes. 2) Preferred seat selection on domestic and international routes. 3) Flash sale of seats to increase revenues and Passenger Load Factor. 4) To utilize unsold inventory/launching of airfare equivalent to Rajdhani IIAC fare on select sectors. 5) Dynamic pricing and introduction of Advance Purchase fare and 6)Various sales and Marketing Initiatives.
This information was given by Minister of State for Civil Aviation Jayant Sinha in a written reply to a question in the Rajya Sabha yesterday.


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