Business Daily from THE HINDU group of publications
Monday, Jul 07, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Monday, Jul 07, 2008 ePaper | Mobile/PDA Version | Audio |
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Airlines Web Extras - Outlook AI to take ‘tough decisions’ soon Our Bureau New Delhi, July 6 The Minister for Civil Aviation, Mr Praful Patel, has warned that hard decisions will need to be taken in view of the challenging times being faced not only by the State-owned Air India, but the airline industry globally. This emerged at a review meeting of Air India’s working chaired by Mr Patel in Mumbai on Saturday. While what these “tough decisions” could include was not spelt out at the meeting, it was decided that the Ministry of Civil Aviation would hold another review of Air India operations in the next 15 days after the airline has collected more data on how the current routes are performing. The airline was advised not to cut back on some of the routes that it was planning to and also to look at better marketing of the domestic and international flights operated by it. Several airlines globally are cutting back on routes in view of rising prices of aviation turbine fuel.
The Minister’s comments come in the backdrop of domestic airlines having already cut back around 120 daily departures with Jet Airways and its 100 per cent subsidiary JetLite announcing a 10 per cent temporary reduction in flights operated by them. In addition, several other airlines, including Air India, have also temporarily suspended operations of some flights. Air India — which is said to be in a financial crisis with the unaudited results for 2007-08 showing a loss of more than Rs 2,000 crore — is also facing trouble on other fronts including passenger load factor, which is around 60 per cent, sources said. The passenger load factor points to the average number of passengers being carried by an airline. The meeting was attended by the Secretary Civil Aviation, Mr Ashok Chawla, the Chairman and Managing Director of Air India, Mr Raghu Menon, and other senior officials of the Ministry of Civil Aviation and the airline. More Stories on : Airlines | Outlook
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