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Air India targets USD439 million in cost reduction and USD285 million increase in revenue

19-May-2010 10:05 AM

Air India parent, National Aviation Company of India Ltd (NACIL), announced the Board of Directors are scheduled to meet with the Ministry of Finance on 19-May-2010 to discuss the carrier’s turnaround plan (The Economic Times, 18-May-2010). The carrier is targeting a USD439 million reduction in costs p/a. The Board also informed that a 15% reduction in employee costs would result in cost savings USD110 million p/a. The carrier plans to increase revenue by USD285 million p/a and increase load factor above 80%. Load factors on the domestic and international networks are averaging 72% and 69%, respectively. NACIL also plans to increase operational hours of new Boeing and Airbus deliveries to 14 and ten hours per day, respectively.