NEW DELHI:
State-owned carrier Air India will cut costs by Rs 1,400 crore or about six per cent of its total outlays in the next financial year following Government’s diktat to the loss-making airline to improve its finances.
The airline said in a statement here that it would identify ‘surplus staff’, freeze contractual hiring and discontinue flights which are not meeting fuel cost targets, to reduce its variable spending of Rs 14,000 crore by a tenth.
Air India controls close to a fifth of India’s domestic air travel market. It has been losing money for years and has long been criticised for its high costs.
In 2012, the Government handed the company a Rs 35,734 crore bailout package.
The aviation major said it would reduce its variable spending of Rs 14,000 crore by a tenth.
The statement said restrictions on staff travel and hospitality have also been introduced.
All but one of the major carriers in India are losing money due to high operating costs and some of the lowest fare prices in the world amid intense growing competition. (AGENCIES)
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