Ahead of Air India’s disinvestment, state carrier’s chairman Pradeep Singh Kharola says the company is set to increase the number of flying hours.
The company’s management has pinned its hopes on the international routes, which add 70% of revenue to the company’s coffers. Mr Kharola said that the new destinations such as Tel Aviv are giving good returns to the carrier.
Through the route analysis, Air India is trying to determine the more yielding routes so that the company can selectively prioritize them over the rest.
Illustrating one such example, Mr Kharola said that merely by raising the frequency of trips to San Francisco to nine a week will increase the revenue to Rs. 90 crore a month, PTI reported.
According to the Directorate General of Civil Aviation (DGCA), Air India had a market share of 13.4 per cent in March 2018.
Underlining the spike in revenue, Air India’s top boss asserts that the revenue has risen by one-fifth of its earlier figure, while the expenses continue to stay high.
Though there are some route changes in the offing and the higher yielding, international routes are likely to witness a higher frequency, certainly at the cost of low-yielding ones. However, Mr Kharola was silent on the specifics. At the same time, he hinted at the possibility of getting African continent on its radar.
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