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Air India to restructure its fleet and network: fleet to be slashed by 25%

11-Jan-2010

Air India, which expects to receive its first infusion of INR20 billion (USD430 million) from the Indian Government ahead of 31-Mar-2010, is entering the initial stages of its challenging restructure, targeted at the rationalisation of its fleet and route network to reduce its cost base and provide the carrier a more stable footing. As the carrier’s restructuring programme takes shape, these efforts are to be sustained and doubled by 2010 to turnaround the carrier financially. [1875 words]

Unlock the following content in this report:

Subheadings:

  • To reduce annual losses from USD1.1 billion to USD282-390 million within 18 months
  • Low cost Air India Express to operate up to 30% of capacity
  • Will three new subsidiaries help turnaround operating loss margins above 20%?
  • A rare case for IATA to support state funding for Air India
  • Air India‚Äôs challenge to integrate and join Star by Dec-2010
  • Tough challenges ahead

Graphs and data:

  • Air India operating profit/loss (INR millions): FY1997/98 to FY2008/09
  • Indian domestic market share: Nov-2009
  • Air India domestic passenger numbers and passenger numbers growth: Nov-2008 to Nov-2009
  • Air India operating profit margin: 1997-98 to 2007-08
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