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Air India adopts slew of measures to cut costs

Agencies

Posted: 2008-10-05 13:34:03+05:30 IST
Updated: Oct 05, 2008 at 1334 hrs IST

As a part of its cost cutting steps, national carrier Air India has decided not to entertain requests for upgrading passengers to First Class or allow excess baggage for free.

The decisions were taken at a recent meeting to ensure financial discipline in the company, airline sources said.

The move came in the wake of huge losses being suffered by the national carrier as well as other Indian airlines, which have already initiated similar steps.

Being a state-owned entity, Air India used to get a large number of requests from passengers, including politicians and bureaucrats.

From now on, the entitlement for travel on the First Class, even for the Chairman-cum-Managing Director of the airline, and all levels of other executives, stand withdrawn, sources said.

These top executives would now be allowed to travel only on the Business Class, while the First Class would be meant solely for those travelling on paid tickets.

A similar initiative has been taken in regard to requests for allowing excess baggage free of charge, as part of the overall corporate policy to enhance revenue.

Sources said these specific moves, along with several other major initiatives to reduce costs, have brought about some "financial discipline" in the company.

In another move, Air India has followed other major global players to introduce a "reduced Cruise Mach policy" to fly an aircraft mainly on long-haul flights at a given height on a low speed in order to reduce fuel burn.

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» airindias route pattern
Posted by N.Sivsubramanian on 2008-10-05 14:26:11.641882+05:30
why airindia is not operating direct flights from bombay to san francisco or from bangalore to san francisco, even though new aircraft 777 were received from Boeing cowhy airindia is yielding all those routes to jet airways and kingfisher airlinesis there any verbal or writtten instructom ministry of civil aviation or mr praful patelminister for civil aviation. who changed the operating pattern originally plannedand are there any vested interests in doing like this for the benefit of jetairif any one knows the rea l reasons please clarify

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Air India adopts slew of measures to cut costs
Air India has decided not to entertain requests for upgrading passengers to First Class.