Government-run carrier Air India is planning to sell five Boeing 777-200LR aircrafts because the yield from non-stop routes of the aircrafts is poor, minister of state for civil aviation K. C. Venugopal announced.
Air India currently has eight Boeing 777-200LR aircrafts that had been inducted between 2007 and 2010.
Announcing the plan to sell the planes, Venugopal said, “Air India is planning to sell its B777-200LR (long range) aircraft. Air India had inducted eight such aircraft between 2007 and 2010.”
Air India pilots, engineers and cabin crew can soon suffer a considerable cut in their salaries as the civil aviation ministry is reportedly mulling plans for the same to slash the state-owned carrier's operating costs.
Sources revealed that the ministry is planning measures like more economy class seats and salary cuts of up to 15 per cent to slash costs and improve the carrier's financial position.
State-owned carrier Air India has decided to put all of its recently acquired six Dreamliner 787 aircrafts up for sale.
Air India has a fleet of six Dreamliners that it took delivery of in 2012. One more Dreamliner is scheduled to join the fleet in a few months.
The carrier has invited quotations from lessors on or before February 5 on a Request for Proposal. In its recently issued bid document, the carrier said it would lease Dreamliners back from the purchasers for a minimum of 12 years immediately after the sale.
Air India’s entry into Star Alliance, the esteemed international airline group, is being torpedoed by contending airlines who want a lion’s share of the Indian market.
Star Alliance is a consortium of 28 airlines, including Air Canada, Lufthansa, Singapore Airlines, Swiss and Thai Airways and each member airline has a veto in choosing on new associates.
It has been revealed according to a recent report that Air India is going to face a debt burden of as much as Rs. 67000 cr. They are of the view that the government would come for their aid and that they shall be able to raise a sum equal to the required value.
The final restructuring plans made by the firm are inclusive of a sum of Rs. 30,584 cr. The sources are of the view that they might be able to raise a sum of that much money with the aid of the government through funding of principal as well as interest repayments.
Air India has been assigned with a deadline of July 31 by Star Alliance to complete its formalities and to become a full-fledged member of the global airline grouping before the final deadline of July 31.
Air India (AI) has finally set to join the global airline grouping, Star Alliance. There was a delay of more than 2 years by the company but now it would join Star Alliance by the month of July. The repeated delay in joining it is costing heavily to Air India (AI), Rs1.5-2 crore per day in revenue.
According to officials, the airline’s revenue is affected largely by its inability to offer domestic connections. The company has been lacking this facility in important markets like the US where AI operates direct flights to New York but not to the West Coast.
According to a CAG report with CNN-IBN, the airline giant Air India has been rewarding its employees in spite of its unhealthy financial condition, an amount of Rs 1500 crore being paid on an annual basis for performance linked incentives.
Due to this, the 10-day strike by the Air Indian pilots has been regarded as a boon in disguise to the airline, which will be able to escape paying out the salaries of last month, stemming a huge amount of red upon the balance sheet.
In Mumbai, Air India has contacted a group of 20 banks to discuss about its debt reconstruction. On Friday, Debt-laden airline Air India has formally announced the process of restructuring its loans with banks. The meeting was attended by Air India CMD Arvind Jadhav, aviation ministry joint secretary Prashant Sukul and bankers from SBI Caps and Syndicate Bank.
On Wednesday the national carrier Air India (AI) has stated that the expenses of the airline have surpassed its income. The daily expenses of the airline is about 57 crore while it earns Rs 36 crore per day. It has been facing a daily loss of Rs 21 crore. This financial mess in airline is also admitted by the government.