Air India adopts slew of measures to cut costs | india | Hindustan Times
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Air India adopts slew of measures to cut costs

india Updated: Oct 05, 2008 10:31 IST

PTI
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As a part of its cost cutting steps, national carrier Air India has decided not to entertain requests for upgrading passengers to First Class or allow excess baggage for free.

The decisions were taken at a recent meeting to ensure financial discipline in the company, airline sources said.

The move came in the wake of huge losses being suffered by the national carrier as well as other Indian airlines, which have already initiated similar steps.

Being a state-owned entity, Air India used to get a large number of requests from passengers, including politicians and bureaucrats.

From now on, the entitlement for travel on the First Class, even for the Chairman-cum-Managing Director of the airline, and all levels of other executives, stand withdrawn, sources said.

These top executives would now be allowed to travel only on the Business Class, while the First Class would be meant solely for those travelling on paid tickets.

A similar initiative has been taken in regard to requests for allowing excess baggage free of charge, as part of the overall corporate policy to enhance revenue.

Sources said these specific moves, along with several other major initiatives to reduce costs, have brought about some "financial discipline" in the company.

In another move, Air India has followed other major global players to introduce a "reduced Cruise Mach policy" to fly an aircraft mainly on long-haul flights at a given height on a low speed in order to reduce fuel burn.