Air India Cuts 100 Flights Daily: Rising fuel prices and shortage of spare parts, know which foreign routes will be affected.
Business Desk – Air India Cuts 100 Flights Daily: Air India is going to cut its international and domestic flights by about 10%. With the winter schedule starting in late October, the Tata Group-owned airline will stop around 100 flights a day. Currently, this airline operates around 900 flights every day.
The decision was taken due to rising fuel prices and shortage of spare parts.
The airline has taken this big step due to the rising cost of jet fuel (ATF) and shortage of spare parts for its aging fleet. Currently, around 30 wide-body aircraft of Air India are grounded due to lack of spare parts and engines.
Although the airline has placed large orders for new aircraft to Boeing and Airbus, their delivery will take some time. Till then, the company is trying to manage its schedule by using its available aircraft.
International routes will be most affected
The airline has decided to reduce the number of flights on many important international routes connecting India with North America, Europe and Australia. San Francisco, Chicago, London and Sydney: Flights to these cities will be reduced every week.
Example: On routes where there are daily flights now, there can now be flights only four or five days a week.
Change expected in domestic network also
Air India will also reduce the number of flights on domestic routes. The company is planning to reduce flights on “metro-to-metro” routes, i.e. routes connecting major metros, where currently several flights operate daily. This strategy will enable the airline to redeploy its aircraft to more profitable routes or keep them on standby, which will help in improving its on-time performance (OTP).
Views of management and experts
A senior official said that this decision has been taken after a complete review of the operational cost and availability of aircraft. Jet fuel prices have increased significantly in the last few months, making many long-haul routes no longer economically viable given their current number of flights.
Air India said it constantly reviews its flight schedules based on market demand and operational constraints to ensure efficient operations. Aviation analysts estimate that the cost of aviation turbine fuel (ATF) accounts for approximately 40% of an airline’s operating expenses. As a result, for the Tata Group, striking a balance between growth and profitability during Air India’s transformation journey is a major challenge.
What is ATF, and why is it important?
- Aviation Turbine Fuel (ATF): It is a special type of fuel which is used in planes.
- Cost: About 40% of the total expenditure of any airline is spent on fuel alone.
- Effect of prices: Whenever oil prices rise, airlines have to either increase airfares or reduce the number of flights to reduce losses.
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