Recent Updates From Air India – Cost Cutting, Revenue Raise And More

The much talked about, centrally owned airline of the country Air India is always making news. Recently, it has announced the addition of economy class seats at the cost of business class seats in its 24 narrow body aircraft. The business model has changed due to the increasing number of economy class travelers in the…

The much talked about, centrally owned airline of the country Air India is always making news. Recently, it has announced the addition of economy class seats at the cost of business class seats in its 24 narrow body aircraft. The business model has changed due to the increasing number of economy class travelers in the recent past. The narrow body aircraft have been recently added to the fleet of this giant Indian airline company. The low weight and high efficiency Airbus 321 and Airbus 320 are the newly added ones.

Among other news related to the company's cost cutting rule, the company's cabin crew above the age of forty years has been directed to appear for a fitness test before March 31, 2013. This move is in the wake of encouraging fitness in the older employees. The employees who have been asked to get the certificate are in denial of the order. The reason is that the airline looks forward to cutting some of the staff through the Voluntary Retirement Scheme and balance costs.

Air India and Air India Express are the low cost carriers for domestic as well as international travelers since 1946. It has made big leaps in the industry and has been an inspiration to new players. However, now with more options with the customers, more and more of them book flight tickets which allow multiple travel booking options. Neverheless, it is always the Air India which kickstarts a low air fare regime, bringing summer flight booking close to AC train ticket fares, thereby encouraging clients to fly travel. It also pushes the private players to reduce tickets fares and throw more options to clients.

Critical situations of the airline facing losses and availing bailouts have made people raise their brows and even voices, but the company is the innovator of business models and keeps the ball rolling despite all odds. Recently, the aviation ministry and other Air India board members announced plans for the 2013-14 fiscal, which are being expected to bring in surplus revenues for the company. The present status of most online air ticket booking websites is catching up in favor of the company.

However, one matter remains to pose considering concern. With such a variety of services and operations, the airline needs to make huger profits than it actually does. This issue needs to be resolved by the management, as recently, the other players in the market have started overtaking it in terms of traveler density (number of travelers per flight). If the air ticket booking catches up in the current season, the company will have to keep wooing its customers to remain the leader that it had been, through more streamlined operations in the most demanding markets.