As part of its route rationalisation and cost-cutting measures, Air India plans to replace its twin-class aircraft with all-economy ones belonging to low-cost subsidiary Air India Express on some Gulf routes from the end of this month.
“As part of our route rationalisation plans some of the flights which are currently being operated by erstwhile Indian Airlines on sectors like Bahrain and Doha, will be operated by our low-cost subsidiary, Air India Express,” Air India sources said here.
Airbus A320 planes, which are currently being flown on these routes, would be replaced by planes with all-economy configuration flown by Air India Express, they said.
“There is a huge potential for economy class traffic on these routes. Replacing a full-service carrier with a budget carrier will definitely help us in enhancing our revenue,” the sources said.
Air India has already effected these changes in its winter schedule starting from Sunday, they said.
GoM to discuss AI restructuring plan
A Group of Ministers (GoM) will consider Air India’s demand for equity infusion of Rs 5,000 crore and its financial restructuring plan at a meeting here tomorrow as the airline has begun implementing a series of measures to reduce costs by Rs 3,000 crore annually. “The GoM on the civil aviation sector, headed by Finance Minister Pranab Mukherjee, is meeting tomorrow as the government has broadly agreed to support Air India’s restructuring process,” Civil Aviation Minister Praful Patel said today. The GoM would also look at a presentation of Air India on its restructuring plan and try to address the issues keeping in mind the recommendations of the Committee of Secretaries, he said. Last week, Patel had said in Mumbai that the cash-strapped airline required around Rs 5,000 crore as additional equity infusion, a demand under the government’s consideration.
