AI expects 30% ticket sales online with code integration

National carrier Air India expects its newly-integrated passenger services system (PSS) to fetch 30% of ticket sales, which would help the ailing airline to improve its cash flow by 15%.

"We expect our web booking to bring us up to 30% of sales over the next 18-24 months. In revenue terms, this will translate into a 15% increase," Air India Chairman and Managing Director Arvind Jadhav said here today.

Currently, over 80% of the airline's ticketing is handled by agents who corner five% of the ticket price as commission now against seven% earlier. Together with reduction in commission outgo, the airline expects its overall revenue to go up considerably due to operational and system integration.

The airline is also expecting to see a major improvement in its load factor with the code integration.

The implementation of the new single code is part of the ailing flag carrier's turnaround strategy, Jadhav said, adding the airline is working on to integrate its cargo business, which is currently being run on two different IT platforms now, within the next six months.

AI is struggling with a mammoth Rs 40,000 crore debt out of which Rs 18,000 crore is working capital loan from various bank, which is being recast now.

Leadingglobal air transport communications and IT solutions provider SITA has implemented the new PSS in a record time of 293 days. SITA had last year been awarded the contract for providing the common IT platform to the merged entities by Air India.