State-run Air India Ltd pared operating loss by Rs.1,179 crore between April 2010 and February, as the cash-strapped flag carrier cut costs to be in line with India’s private airlines.
Air India has got 190 proposals from employees to cut costs and increase revenue, including printing ads on boarding passes, fuel-saving measures and selling holiday packages, two executives said.
These proposals are in response to a request from chairman and managing director Arvind Jadhav, who is steering the turnaround plan.
“Employees are making efforts to make their departments cash-positive by identifying cost-saving measures. They have come up with interesting ideas to cut cost. Even thickness of boarding passes have come under scrutiny (of employees),” said one of the officials. Both spoke on condition of anonymity.
The executive cited above did not give details of the employees’ proposals.
During the slowdown, private carriers washed the planes to reduce the drag while flying (to save fuel), lowered thickness of boarding passes, carried less water in toilets and reduced the thickness of on-board magazines, among other measures.
Though airlines are flying out of crisis, Air India has accumulated Rs.13,300 crore losses since its merger with Indian Airlines in 2007. Before the merger, the losses reported by the two state-owned carriers were Rs.447.93 crore and Rs.240.93 crore, respectively, aviation minister Vayalar Ravi told Parliament in March. The firm has also taken Rs.40,000 crore long-term loans.
19/04/11 P. R. Sanjai/Live Mint
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