'Cash-strapped?, ?struggling to stay afloat? -- phrases like these still continue to haunt India's national carrier Air India. But how can the airline resurrect itself? Data shows that going local and cutting down on international flights could turn out to be the single-biggest cost-saving measure. But is the airline and the government listening? CNBC-TV18's Sohini Dutt and Sindhu Bhattacharya report.
Indigo is the king of the Indian skies, Jet Airways is firming up its domestic operations, Vistara is up and running: where does this leave Air India? Here?s why the national carrier should focus on domestic routes instead of mindless overseas expansion. Air India deploys just 25 percent of its capacity on domestic flights but they account for nearly 40 percent of its revenues. Not just that: the airline earns Rs 6 revenue per passenger on domestic routes against just Rs 3.50 for every international passenger. This is a clear proof that the Maharaja must consolidate his grip on the domestic turf first. Air India has undertaken some work already by cutting down flights to Moscow, Dhaka and others. But a lot more is still to be done. Consider this: During the 10 months of FY15 under review, the airline has lost a whopping Rs 500 crore rupees on the Ahmedabad-Mumbai-Newark connection. 04/04/15 Sindhu Bhattacharya/CNBC-TV18/moneycontrol.com
Indigo is the king of the Indian skies, Jet Airways is firming up its domestic operations, Vistara is up and running: where does this leave Air India? Here?s why the national carrier should focus on domestic routes instead of mindless overseas expansion. Air India deploys just 25 percent of its capacity on domestic flights but they account for nearly 40 percent of its revenues. Not just that: the airline earns Rs 6 revenue per passenger on domestic routes against just Rs 3.50 for every international passenger. This is a clear proof that the Maharaja must consolidate his grip on the domestic turf first. Air India has undertaken some work already by cutting down flights to Moscow, Dhaka and others. But a lot more is still to be done. Consider this: During the 10 months of FY15 under review, the airline has lost a whopping Rs 500 crore rupees on the Ahmedabad-Mumbai-Newark connection. 04/04/15 Sindhu Bhattacharya/CNBC-TV18/moneycontrol.com
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