Air India to dump loss-making routes
26 Aug 2011
New Delhi: State-owned Air India plans to curtail operations on several loss-making routes in a bid to reduce costs and improve cash flow, civil aviation minister, Vayalar Ravi, said Friday.
"Our focus is on reducing expenditure. We are discussing several options, including closing operations on loss-making routes," Ravi informed the media.
"We have not yet identified the routes. But it is under consideration," the minister said.
He said the ministerial panel, headed by finance minister, Pranab Mukherjee, has asked the airline to improve its cash flow and reduce losses.
According to official figures, the airline has accumulated liabilities of over Rs44,000 crore, half of which are working capital loans.
The mountain of debt results in the carrier paying out nearly Rs3,200 crore as interest to its lenders.
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