Air India to go low cost, cut business class seats

Mumbai/New Delhi: While embattled private carrier, and rival, Kingfisher Airlines has decided to dump low cost services in a bid to increase revenue yields, financially beleaguered state-owned carrier, Air India, has opted for the reverse route and is considering adding more economy seats on its domestic flights to increase yields.

According to reports, Air India management has constituted a committee to look at ways to increase per flight yields in accordance with occupancy ratios, and one of the options under consideration is cabin restructuring by adding more economy seats.

According to airline sources, the committee will submit its report to the airline board.

Air India's domestic operations are carried out primarily on Airbus aircraft.

Airline officials said routes traditionally showed low occupancy for premium class seats, which averaged between 20 to 40 per cent per flight, while economy class seats showed occupancy rates of between 60 to 90 per cent.

Airline official said there were around 50 narrow-body aircraft on the domestic sector with business class seats.

The business class seats range from eight to 20 on different kinds of aircraft on domestic routes.