Aviation

Air India to axe more loss-making routes

DELHI

State-owned Air India (AI) aims to substantially cut the number of routes not meeting variable costs, to reduce these to 19% of its overall network by the end of the current financial year.

The carrier, which operates about 480 daily flights in the international and domestic sectors, had brought down the number of routes not meeting variable costs to 38% of its network by the end of 2013-14, from 60%.

A senior official said, “We have completely withdrawn flights not meeting ATF (aviation turbine fuel) costs. While there would be flights in which we would not be able to generate operational profits, we are looking at meeting cash costs on 81% of our network by the end of this financial year.”

Full report here Business Standard

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