Air India’s Restructuring Reaping Rewards
AIN AIR TRANSPORT PERSPECTIVE » MAY 20, 2013 by NEELAM MATHEWS Air India reintroduced Boeing 787 service on May 15. (Photo: Boeing) May 20, 2013, 9:10 AM A major restructuring at Air India has cut loss-making routes to 25 percent of its network in the fiscal year ending March 2013, down from 69 percent in the previous year. The airline attributes the improvement to a series of steps taken to cut costs, restructure loans, strengthen management and liquidate assets, including the spin-off of engineering and ground handling as independent profit centers. Air India has also started the process of changing its business model to a “hybrid” one, said chairman and managing director Rohit Nandan. Following a recent approval by the ministry of civil aviation to allow for charging of extras, or “unbundling,” the airline has reduced its free baggage allowance on domestic flights to 15 kg from 20 kg. Meanwhile, the airlin...