The Hindu Business Line : Kingfisher, Deccan to prune flights

Bangalore, June 23 Kingfisher Airlines and Simplifly Deccan, part of the UB Group, have slashed over 10 per cent of their total daily flights while Deccan’s 47 expat engineers are being sent back home.

Sources in the UB group told Business Line that because of rising aviation turbine fuel prices as well as over capacity in certain sectors, both had decided to cut down on the number of flights. “It would cost us less to keep the aircraft on the ground than keep them flying”.

Sources said both the airlines fly a total of 550 flights every day and out of that, about 28 flights from each of these airlines have been taken off the schedule across the country. Kingfisher Airlines will, however, go ahead with its plans to fly international routes from August this year.

Off-season exercise

When contacted, a UB Group spokesperson said it was part of the off-season exercise. “As we approach the off-season, on some sectors where there are multiple flights operating in a day and we find that the loads can be handled by fewer flights, we would explore the option of reducing the frequency of flights in the interest of optimal network planning,” he said.

He did not say how much would both the airlines save because of this exercise. Apart from this new cost reduction plans, the operational synergies between the two airlines are expected to lead to a benefit of about Rs 250 crore.

Expats to go back home

Simplifly Deccan, the low cost airline of the group, is also sending back home all its 47 foreign engineers to reduce costs; but both the airlines are keeping back foreign pilots who number not more than 10 totally. Most of these foreign pilots fly only ATRs.

Sources also said both the airlines are carrying out several other measures in an attempt to reduce costs. The pilots of both the airlines have been instructed to switch off one of the engines while their aircraft are on the ground before they get their turn to take off leading to savings on fuel. The airlines are also working on changes which can be made while the aircraft approaches landing and on rationalisation of routes as well. Both the airlines have incurred a total loss of over Rs 2,500 crore and are now looking at new investments worth over Rs 1,200 crore to fund the expansion plans.