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Our Bureau

Mumbai, June 10 Airlines are now putting in place cost cutting measures to mitigate the rising Aviation Turbine Fuel (ATF) charges.

Deccan and Jet Airways officials said on Tuesday that their airlines would be rationalising routes as a first step towards this.

Speaking to newspersons on the sidelines of India Aviation Outlook Summit 2008 organised by the Centre for Asia Pacific Aviation, Mr Ramki Sundaram, officiating CEO and CFO of Deccan said, “We are looking at different cost cutting measures since it is a changing scenario and many routes were on gross negative margin. We are considering rationalising routes.”

According to Mr Raj Sivakumar, Vice-President, Revenue Management, Jet Airways, the rationalisation would also come in on implementation of IT solutions, on dealing with distribution costs and the like: “Route rationalisation and other cost cutting measures are an ongoing exercise. We are looking at eliminating a few flights, perhaps, some afternoon flights when there is not much traffic, or reducing frequencies on certain routes.”

Mr Sivakumar refused to divulge how many flights his company had taken off its schedule in the last six months, but said that overall the eliminations were not much.

On aircraft deliveries, Jet said there would not be any deferment in its plants. However, Deccan’s Mr Sundaram said if oil prices continued to rise, the airline might defer aircraft deliveries.

Jet had earlier said that there were three wide bodied aircraft it would take delivery of this year.

Deccan was supposed to get six ATRs and six Airbus, said Mr Sundaram.

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