New Delhi: Air India has taken several steps to make its operation profitable which include withdrawing flights that does not meet fuel or variable costs, adjusting schedule in line with seasonal demand and offering discounts to corporate travellers among others, government said on Tuesday.
Minister of State for Civil Aviation Mahesh Sharma, in a written reply in Rajya Sabha, said joining of Air India to the club of global airlines 'Star Alliance' would give the national carrier leverage to get good seat factor, was also a step towards becoming profitable.
Other measures include launching of promotional and competitive fares as well as enhancing facilities for passengers such as web check-in option and flight tracking system, he said.
Sharma, however, did not share the total number of profit or loss making routes of Air India.
"Since the route profitability or loss on various sector is confidential and will harm the commercial interest of the company, information regarding profit or loss of domestic and international flights of Air India can't be revealed."
The Minister said Air India, however, analyses the reasons for losses and based on the strategic importance of the routes takes a call on whether to operate those routes or not.
"While determining the desirability or otherwise of discontinuing services of loss-making services, Air India takes into account the revenue contribution made by the subject services to other services by way of feeder traffic.
"As such, non-profitability of any one flight is not taken in isolation as the sole barometer of its financial performance," Sharma said.
