Mumbai: Air India, India’s oldest airline is cutting down business class seats and soon go in for all economy seats, sell land and properties that it owns and creating new companies for engineering and ground handling divisions of the carrier. The airline will receive Rs 30,000 crore to cover the losses of the six year operations . The carrier has Rs 40,000 crore debt.
As a plan to cover the bailout, Air India will have only economy class in the A320 aircraft it will lose. Business class seats take more space and by doing away with this each flight will have 180 seats. 25% of the business class will be reduced in existing flights. The idea is to offer full service at low cost airline rates. This will bring down the loss of Rs 5100 crore of last year to Rs 3900 crore as it will get Rs 1040 crore in this fiscal. In 2011-2012 it had Rs 7100 crore loss.
Read News In Full 26/08/13 TruthDive
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