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    Retired Staff
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    Mar 2009
    Lonley Planet

    Default Induction Of New Planes Helped Air India To Increase Passenger Load And Revenues- Say

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    According to Air India Chairman and managing director Arvind Jadhav, the national carrier could increase the passenger load and revenues by deploying new aircraft and rationalising routes.

    Speaking to the reporters, the company MD said that the flag carrier had increased passenger flow by 10% in 2009. And, it has also reduced costs after the induction of the new planes.

    Air India had inducted 29 aircrafts and phased out 11 old aircrafts to balance the fleet. It had also utilised its fleet, which helped the company of five Boeing 747-400s and two Airbus A-330s for Haj pilgrimage saving a substantial amount of revenue.

    "By March 2010 three more Boeing B-777-200s, two Airbus A-310s and eight Airbus A-320s shall be returned or retired from the fleet as part of this exercise," Jadhav added.

    According to sources, Air India saved around Rs.378 crore through cost reductions during its winter schedule and Rs.563 crore for the entire year,

    Among the other substantial steps, the company withdrew from certain sectors like the India-Gulf routes and instead, it transferred these to Air India Express to gain profit.

    Statistics show that, during April-November period, Air India carried 10.1 percent more passengers than in the corresponding period last year and by the time, it had also increased its share in domestic market from 16.6% in August to 18.5% in November.

    About the market load, Jadav said, "We expect to maintain the uptrend in performance in the coming months too."

    According to Jadhav, Air India added seven Boeing 777s, eight Airbus A-321s and nine Airbus A-319s and five Boeing 737-800s for Air India Express in 2009.

    The Boeing 777s were deployed during winter schedule from October on all its seven West-bound destinations in the US, Europe, Canada and Japan, which resulted in reduction in cost of operations because these aircraft are more fuel-efficient. It had also deployed more Airbus A-319 and A-321in place of A-320s in domestic circuits.

    The national carrier also re-launched its frequent flyer programme with the participation of Lufthansa and Singapore Airlines.

    These types of cost-cutting measures like monitoring of fuel efficiency parameters, curtailing accommodation, transportation and combine work of two national carriers, enabled the company in saving of Rs.146 crore till October.



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