State-run carrier achieved this feat by maximizing its aircraft utilisation and taking less competitive routes control its fares better, says ChairmanNew Delhi: Air India recorded a 17 percent rise in passenger revenues during the April-December period of the fiscal year. Pradeep Singh Kharola, Chairman and Managing Director, said that the state-owned carrier achieved this feat by maximising its aircraft utilisation and taking less competitive routes to control its fares better. “We have flown our aircraft for longer duration as compared to previous years and used pilot duties more judiciously to improve our revenues. Capacity has increased on profitable routes. This includes night-time flights,” Kharola told reporters.
From its sale of domestic and international tickets the last fiscal year, the carrier earned Rs 15,081 crore while they received Rs 12,918 crore the year before. Air India generates around 65 percent of its passenger revenue from overseas journeys.
In another cost-effective measure, Air India started carrying food stocked from India on its return journey to the country to cut back on catering costs on international flights. “Catering costs for us are around Rs 600-800 crore a year. Catering in India is 3-4 times cheaper as compared to catering in the West. To save our costs, the food is taken from here in India in chillers and then it is heated whenever it has to be served,” Kharola said.
PSU Watch is a business news brand of 27 Frames Communications LLP. It places the spotlight on PSUs, Governance, Bureaucracy, Defence and Public Policy as the sector traverses through a period of radical change.