The maharajah will be shedding some flab. Taking a cue from loss-making private airlines that are scurrying to cut costs, state-owned Air India has announced a slew of measures aimed at saving up to Rs 300 crore a year. Unveiled at a National Aviation Company of India Ltd board meeting in New Delhi on Tuesday by CMD Reghu Menon, they include whittling down marketing spends and discouraging personal travel by top executives by curbing discounted fares.

The company posted losses of nearly Rs 2,400 crore in 2007-08. According to data available with the civil aviation ministry, there has been a drop of 15% in the airline?s passenger load factor in the past two months. Nearly 33.26 lakh passenger flew by Air India in January 2009, against 38.97 lakh in the corresponding month last year.

Air India, which had earlier earmarked Rs 60 crore to publicise its international routes globally this year, has scrapped the plan. It spent Rs 25 crore last year to advertise its Mumbai-New York flights in the US by putting up hoardings in Times Square, among other places.

Air India has also decided to discontinue the 40% discount scheme for employees and their families for domestic travel more than once a year. According to an insider, over 3,000 Nacil executives are entitled to the discounted fares. The source added there could also be future curbs on international business travel. Menon is also considering a scheme whereby 1,000 non-operational staff could take a sabbatical of between two and five years.

On January 1 this year, Air India had circulated a 25-point circular to senior officers on various cost-saving measures. They include payment of fuel reimbursement strictly through vouchers, abolition of children?s education allowance to officers posted abroad, reducing the cost of residential furnishing for EDs and GMs, and restricting foreign travel.

Air India director (PR) Jitendra Bharghava said, ?Air India had earlier introduced a slew of cost-cutting measures. There are no new measures undertaken currently.?

Private sector peers Kingfisher Airlines and Jet Airways have already introduced steps to axe operating costs. Last November, Jet asked its pilots to accept a 25% salary cut, while Kingfisher reduced pilot flying hours. The sector is expected to post losses of Rs 8,000 crore in 2008-09.