AI’s US flight may be scrapped

Air India's (AI) flights to United States could well turn out to be the next big casualty as the state-run carrier gropes for options to stay afloat in precarious financial health.A senior AI executive confirmed that the management was considering a drastic route rationalisation exercise. This could include removing a direct flight to New York, either from Delhi or from Mumbai.

"The idea (of reducing flight to the US) is still in formulation stage, and is unlikely to be taken up in the airline's board meeting slated for later this week," said the executive, who did not wish to be identified, as he was not authorised to speak to the media.

The airline has four daily flights to the US, two each from Mumbai and Delhi, connecting New York, Washington, Chicago and Los Angeles.

Air India chairman and managing director Arvind Jadhav was not available for comments.
"An internal assessment is being made to find out which are the most loss making routes and only then a decision would be taken," the executive said.

The airline, has incurred a loss of Rs 5,548 crore in 200809. It has taken a series of measures to cut costs including rationalisation of wage structure of its 33,000 employees.

Air India's (AI) flights to United States could well turn out to be the next big casualty as the state-run carrier gropes for options to stay afloat in precarious financial health.A senior AI executive confirmed that the management was considering a drastic route rationalisation exercise. This could include removing a direct flight to New York, either from Delhi or from Mumbai.

"The idea (of reducing flight to the US) is still in formulation stage, and is unlikely to be taken up in the airline's board meeting slated for later this week," said the executive, who did not wish to be identified, as he was not authorised to speak to the media.

The airline has four daily flights to the US, two each from Mumbai and Delhi, connecting New York, Washington, Chicago and Los Angeles.

Air India chairman and managing director Arvind Jadhav was not available for comments.
"An internal assessment is being made to find out which are the most loss making routes and only then a decision would be taken," the executive said.

The airline, has incurred a loss of Rs 5,548 crore in 200809. It has taken a series of measures to cut costs including rationalisation of wage structure of its 33,000 employees.

Source:
AI’s US flight may be scrapped
The Hindustan Times
Date- 24 November 2009
Edition- New Delhi