Air India may shun more money-losing routes

Air India has a total debt of Rs40,000 crore and is in the
midst of a Rs30,000 crore government rescue programme

State-owned Air India Ltd plans to stop operating on more money-losing routes after carrying out a rigorous analysis of flights that aren’t profitable, in line with a finance ministry diktat, two senior officials at the airline said.

Air India has already discontinued flights on 12 domestic and three international routes in the past 12 months based on the preliminary findings of the route profitability analysis. The airline did not disclose details of the money-losing routes. According to the latest public data, between April and July 2012, of 184 routes, Air India made more money than it spent on 16 routes, met the cash expenditure (but not total expenditure) it incurred on 69, and made less than it spent on 99 routes.

Full report here Mint


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