To save costs and boost revenues, Air India is planning to dry lease some of its 777s to private airlines. The airline will replace the aircraft with the more fuel-efficient 787s that are due for delivery soon – with three schedule for June and July, and the remaining 24 aircraft to follow soon after.
Air India issued a global tender to dry-lease 777-200LRs for 8-10 years last month, which it says has received a healthy response from other airlines and leasing agencies.
Most of Air India’s 20 777-200s and 777-300s are currently grounded due to the ongoing pilot’s strike.
Air India’s loss-making routes analysed by new committee
Indian civil aviation minister Ajit Singh has created a new committee that will analyse which routes Air India making losses on and discover what the problems are.
“We are losing money on short-haul international flights such as Riyadh, despite high-seat occupancy. We have to look at the reasons for this. The proposed task force will also inspect ways and means to cut wasteful expenditure, including areas such as flying allowance and crew layover,” Singh said, adding that he would soon set up another task force to examine more cost-cutting measures.