(Image source from: Air India to freeze hiring and clean spending})

State-owned carrier Air India is her way to cut down the wastage around 14 billion rupees ($227 million) in the next financial year, which is commencing from April 1st. The decision came after the government asked the organization to improve its finances.

Though the government had provided a bailout package of 5.8 billion dollars in 2012, the Air India could not able to get on the track. Air India is having one fifth of domestic market control and famous for uncertainty.

The airline said in a statement late on Sunday that it will start its reformation by identifying the “surplus staff” for termination, freeze contractual hiring and discontinue flights which are not meeting fuel cost targets, to reduce its variable spending of 140 billion rupees by a tenth.

The losses are not only confined to Air India, all the major air service carriers are incurring in losses for higher air traffic charge, fuel costs and lower tariff rates also causing huge losses. During the merger process of Air India and Indian Airlines, huge uncertainty emerged because of their financial health condition and opposition from the staff.

Air India really having a bad name for its poor service across the world and its carriers also are not in advanced stage to compete with the private firms and international services like fly emirates, British airways, Qatar airways, Turkish Airlines, etc.

AW: Kannamsai