Cost Cutting Measures saved Rs 800 Crore during 2010-11
Ch. Ajit Singh, the Minister of Civil Aviation informed Lok Sabha today in a written reply that the various cost cutting measures implemented by Air India had resulted in savings of approximate Rs 800 crores during 2010-11.
The Minister further informed that the Air India has taken several initiatives towards cost cutting and revenue enhancement. These measures are i) Complete route rationalization of erstwhile Air India and Indian Airlines routes and elimination of route network involving; ii) Rationalization of certain loss making routes; iii) Induction of brand new aircraft on several domestic and international routes to increase passengers appeal; iv) Phasing out of old fleet and consequential reduction in maintenance cost; v) Return of leased aircraft at the end of their tenure or prematurely; vi) Freezing of employment in non-operational areas; vii) Redeployment of staff to cut in-fructuous expenditure; viii) Grounding of ageing fleet including B747-400 which would be used only for certain lines of operations and for operating VVIP flights; ix)Relocation of EDs/IBOs from abroad back to India; x) Closure of overseas offline offices at certain locations; xi) Dismantling of the Frankfurt hub and establishment of the Delhi hub resulting in substantial saving due to restructuring of routes; xii) Establishment of Integrated Operations Control Centres.
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