State-owned national carrier Air-India has projected that its operating losses would come down by 43 per cent to about Rs 1200 crore in fiscal 2014-15 on assumptions that the passenger load would be higher and also cargo would bring in more revenues.
Air - India has drawn up plans to cut operating costs by 40 per cent to achieve this. The airline is expected to post an operating loss of Rs 210 crore and a cumulative loss of Rs 3900 crore in the year ending 31 March this year.
Air-India expects to effect strict cost control and raise revenues in the 2014-15 fiscal hoping to increase earnings by 15 per cent over its total revenue of Rs 21,500 crore in the next fiscal. It hopes to increase seating by a near 10 per cent and achieve seat occupancy of 75 per cent. The airline hopes to post revenue of Rs 19,200 crore in fiscal 2013-14.
Air-India hopes to join the Star Alliance this year to offer more flight options to its customers. Star Alliance for Air - India will open up tremendous options for its passengers – a mind boggling near 22,000 flights to over 1300 airports in 195 countries. Passengers can redeem air miles on alliance partners such as Lufthansa, Singapore Airlines and United Airlines.
Air-India faces a tough year ahead as UAE based Etihad has bought a stake in private airline Jet Airways and Tata Sons will be entering the aviation sector with their joint venture with Singapore Airlines and Air Asia of Malaysia. Air-India has planned to induct 19 Airbus SA320 aircraft to enhance its domestic operations. Five of these come on lease from China Aircraft Leasing Co Ltd.