Day 21, Rs.300 crore losses - Air India crisis continuesMay 28th, 2012 - 3:17 pm ICT by IANS
New Delhi, May 28 (IANS) The strike by pilots of national carrier Air India continued for the 21th day Monday, mounting losses to more than Rs.300 crore (about $55 mn).
“Current losses are more than Rs.300 crore. The losses are on accounts of ticket cancellations, unused labour and bulk of Boeing-777 fleet being grounded,” a senior Air India official told IANS.
“Bookings on our international flight have stabilised and we have placed maximum number of seats in the lowest price bracket… that has also helped bookings in the domestic sector as well in the current contingency plan,” he said.
The airline had decided last week to reduce fares by placing a large chunk of seats under the lowest fare category to augment its share in the domestic and international sector.
The airline had the fourth-largest market share in April at 17.6 percent, preceded by SpiceJet at 17.7, Jet Airways at 21.4 percent and IndiGo at 23.8 percent.
Apart from the new fare scheme, the airline will shift to a truncated interim schedule for June 1, whereby it will drop seven international destinations, which include Hong Kong, Osaka, Seoul and Toronto, from its regular routine. The airline will then operate only 38 services instead of the regular 45.
Currently, the carrier is operating through a contingency plan under which a bare minimum number of flights are maintained by clubbing operations to various destinations in Europe and the United States.
Air India has maintained that it has enough executive pilots to operate long-haul destinations in the US and Europe.
The development comes even as the Air India’s board met here to consider several proposals to normalise the airline’s international operations that have been crippled by the 21-day ongoing pilots’ strike.
Among the several proposals being mooted to restore the passenger carriers’ includes wet leasing aircraft from other airlines. The proposal, according to officials, will include renting of aircraft with pilots and cabin crew.
“There is a proposal to wet lease at least five aircraft with pilots and crew. We require pilots and crews to maintain operations to key destinations in Europe, US and south east Asian destinations like Hong Kong.”
The board is also expected to decide on the induction date of the Boeing 787 Dreamliner into the carrier’s fleet and a voluntary retirement scheme (VSR) for employees.
- Day 22, Air India loss mounts to Rs.310 crore - May 29, 2012
- Panel to rationalise Air India's loss-making routes (Lead) - May 28, 2012
- Air India to shift to interim plan from June 1 (Second Lead) - Jun 01, 2012
- Minister tells striking pilots to get back to work (Lead) - May 29, 2012
- Air India to shift to interim plan from June 1 (Lead) - May 31, 2012
- Air India strike continues, losses mount to Rs.330 crore - May 31, 2012
- Air India strike continues for 19th day, losses at Rs.290 crore - May 26, 2012
- AI employees suffer as strike continues for 19th day (Lead) - May 26, 2012
- Air India works on contingency plan as strike drags on (Second Lead) - May 11, 2012
- AI board meet to decide on Boeing 787 arrival date, employees VRS - May 25, 2012
- Air India pilots continue strike for fifth day (Lead) - May 12, 2012
- AI pilots say they are ready for talks, management is not (Second Lead) - May 12, 2012
- Air India grounds bulk of Boeing 777 fleet - May 11, 2012
- Air India crisis deepens, sacks another 25 pilots (Roundup) - May 11, 2012
- Air India strike enters 17th day; loses Rs.270 crore (Lead) - May 24, 2012
Tags: 21th, air india, boeing 777, carrier air, contingency plan, crore, domestic sector, haul destinations, interim schedule, international flight, international sector, jet airways, leasing aircraft, lowest fare, national carrier, passenger carriers, pilots strike, price bracket, s board, spicejet