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Air India to undertake cost cutting programme


Mounting losses, high fuel prices and softening demand are forcing Air India’s Chairman and Managing Director to implement a two-pronged strategy - to seek a large financial bailout from the Indian Government and to undertake a USD240 million cost cutting programme. [1163 words]

Unlock the following content in this report:


  • Seeks government funding
  • To cut international capacity
  • Likely to cut fares on international services
  • To review human resources, though no job cuts for now
  • Fleet expansion on track
  • Entry into Star Alliance under threat

Graphs and data:

  • Air India operating profit margin:FY97/98 - FY06/07
  • Air India International destination map: Aug-08
  • India to Middle East capacity (seats) share: week commencing 11-Aug-08
  • National Aviation Company of India Ltd. fleet: Jul-08
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