Air India reduces operating loss to USD265m in 10 months to Feb-2011
Air India Ltd has reportedly reduced its operating loss by INR11.8 billion (USD264.9 million) between Apr-2010 and Feb-2011 through cost reductions (Live Mint, 19-Apr-2011). The operational deficit of international routes was lowered by INR10.9 billion (USD244.5 million) and by INR910 million (USD20.4 million) on domestic routes. Load factors reportedly stood at 66.4% in the period, compared with 64.9% in the previous corresponding period. Load factors averaged 71.4% on domestic routes (up from 70.2%) and 65% on international sectors (up from 63.5%). The carrier handled 11.87 million passengers during the period, equating to 35,560 passengers per day, and marking a 9.3% year-on-year increase. Average yields reportedly improved by 9.7% to INR3.39 (USD 7.62 cents). The carrier has reportedly received 190 proposals from employees to reduce costs and increase revenue, including printing ads on boarding passes, fuel-saving measures and selling holiday packages. These proposals are in response to a request from chairman and managing director Arvind Jadhav. The carrier is planning to be profitable by 2014 under its third financial restructuring plan in as many years, prepared by SBI Capital Markets Ltd and vetted by Deloitte Consulting India Pvt Ltd.