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Monday, August 9, 1999

Indian Airlines sets up five panels in bid to restructure operations 

Sabarinath M  
Mumbai, Aug 8: Indian Airlines, caught in the midst of a fare war, has set up working groups to review systems in an effort to drastically revamp its operations. The groups will suggest ways and means to bolster revenue and curb expenditure.

The airline has constituted five committees under the leadership of senior officials with each having specific set of objectives. The product upgradation panel, headed by deputy managing director JRD Rao, would keep a close tab on market trends, new products and performance of rival airlines.The panel has also been asked to analyse capacity, traffic trends and other major initiatives launched in the market. It will suggest innovative strategies and monitor the implementation of the same, I-A sources said.A cost control committee will initiate measures to usher in financial discipline with a view to curbing unnecessary expenditure. This committee is headed by another deputy managing director, NC Ghosh.

A task force has also been constituted for identifying means togenerate extra revenue from non-traditional sources apart from the existing ones. Its recommendations are specifically meant to enhance revenue at least by 10 per cent in the next three years, sources said.

While a committee headed by MP Vijayakumar, (general manager, planning) will look into information systems, a task force under the leadership of P Jayaram will formulate service standards with a view to creating a basic yardstick for service delivery, sources said.

The formation of internal working groups comes close on the heels of major marketing initiatives by IA to stay afloat in the fiercely competitive scenario. The airline has completed a product upgradation exercise through refurbishment of the aircraft. Almost all Airbus 300s have been redone and the refurbishment of the Boeing 737s is expected to be over by September.The airline is also altering its onboard menu in keeping with passenger preference. For starters, this has been introduced in the metro shuttle flights which will be extended toothers shortly, sources said. A package for travel agents has also been worked out which would simplify their operations. Agents selling tickets above Rs 20 lakh per month will now be given permission to start three extension counters in the six major metros.IA has posted only a marginal profit in the first quarter due to a drop in passenger traffic to 1.949 million during the first quarter from 2.095 million in the same period last year.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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