Air India focussing on cutting cost and increasing revenue
Press Trust of India / New Delhi Nov 24, 2009, 17:15 IST
Cash-strapped Air India is focussing on cost reduction of Rs 1,500 crore and revenue enhancement of Rs 1,200 crore as per its turnaround plan and the government would infuse equity into the airline in the next few years, the Rajya Sabha was informed today.
"The airline's turnaround plan has been broadly divided into 0-9 months, 9-18 months and 18-36 months and has been segregated under operational efficiency, product improvement, organisation building and financial restructuring," Civil Aviation Minister Praful Patel said in a written reply.
He said the National Aviation Company of India (NACIL) was mainly focussing on cost reduction (to the tune of Rs 1,500 crore) and revenue enhancement (of Rs 1,200 crore).
The plan also envisages manpower cost rationalisation, fuel management, route profitability enhancement and non-traffic revenue enhancement.
He also said that Air India has rescheduled delivery of three Boeing 777-300ER aircraft beyond 2010 and 27 Boeing 787 aircraft beyond contracted delivery period commencing April, 2011.
The airline had also proposed to lease out three new Boeing 777-200LR aircraft.
after merger of air india and indian airlines the number of top posts should have been reduced by half---but it has doubled ---this means 4 times increase--------WHY 40 EXECUTIVE DIRECTORS?--ALL EXECUTIVE DIRECTORS SHOULD BE DEMOTED TO DY GENERAL MANAGER LEVEL---there are at least 10 decorative EXECUTIVE DIRECTORS a better utilisation of tax payers money is desirable
PILOTS DEFERRED STRIKE BY 6 DAYS BECAUSE OF MARRIAGE FESTIVAL OF DIRECTOR PERSONNEL--------6 days postponement does not make any sense-------this shows that directors and unions are hand in glove------LIKE WAR GAMES THEY PLAY STRIKE GAMES AND AGITATION GAMES-----a complete new set up is required in the MERGED AIRLINES--otherwise various VESTED INTERESTS WILL PULL THE COMPANY IN VARIOUS DIRECTIONS.
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