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Air India has to reduce flights to cut losses: Patel

Agencies

Posted: Jul 20, 2008 at 1735 hrs IST
Updated: Jul 20, 2008 at 1732 hrs IST

National air carrier Air India will have to take harsh decisions including reduction in flights to cut down the mounting losses and reduce expenditure, Union Civil Aviation Minister Praful Patel said.

"Some harsh steps are required by Air India. They have to cut down loss-making routes. They could also reduce the expenditures," Patel told reporters on the sidelines of a function.

All airlines are cutting down on routes, and Air India is also planning similar measures, he said, adding, "there are no directions from his Ministry on this issue".

The airlines can look at the excess capacity. But there will be no reduction in connectivity, Patel said.

On the issue of a bail-out package to the airline industry in the country, the Civil Aviation Minister said that the Government does not give any subsidy or money to any airline.

"Airlines don't get any subsidy or money from the Government. They bear the expenses only through their income.

As long as these airlines can do so, fine, but if they can't, then they will have to cut down the routes," he said.

The national carriers' net loss for 2007-08 is being pegged at Rs 2,144 crore.

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» aviation
Posted by s.divakaran on 2008-07-21 04:36:28.525378+05:30
Cutting the number of flights is a world trend.Air India neednot shy from this to cut costs.

» Air India
Posted by someswar on 2008-07-20 22:25:00.458626+05:30
It is high time that govt desides to privatise Air India as it is impossible to run any enterpruise controlled by the trade unions. The customer service in the company is fast deteriorating and the passengers have been regretting for taking the journeys by Air India flights.

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