The government has almost finalised bid documents for the privatisation of Air India.
Air India cost saving plans to add over Rs 700 crore per annum, as govt readies plan to divest stake
While one initiative of moving to one ticket booking software for domestic flight bookings would save about Rs 519 crore in 2020, the other initiative of putting a bigger aircraft on Delhi-London route and smaller Dreamliner on Delhi-Washington route would add about Rs 100 crore to airline’s bottom line.
Indira Gandhi Rashtriya Udan Academy (IGRUA), the pilot training institute that was the brainchild of former Prime Minister Rajiv Gandhi, will soon be in private hands with the Modi government deciding to privatise it.
The Directorate General of Civil Aviation (DGCA) has extended the deadline for replacement of older Pratt & Whitney engines on Airbus 320 (neos) with newer ones till May 31, 2020.
A relaxation would have meant that a foreign airline, along with an investment authority from its country of origin, could buy 100% in the national carrier and control Air India from headquarters based anywhere in the world.
Due to tension between the US and Iran, which saw the US killing Iran’s top general and Iran retaliating by bombing US military base in Iraq has heightened tension in the region.
The DGCA had cracked down on GoAir for pushing pilots and cabin crew to work in excess of stipulated hours prescribed under Flight Duty Time Limitations (FDTL) during the middle of December. ET had reported it first during the last week of December. The crackdown had led to flight cancellations by GoAir from Delhi, Mumbai, Bengaluru, Kolkata and Patna.
With the grounding of Jet, Air India gained a 20% boost in revenue from international operations.
Representatives from two companies have met govt officials and shown interest in the national carrier.
The aviation ministry’s letter, seen by ET, said the area, where hotel is located, would be required for expansion between 2026 and 2034 and allows its operation till 2032. The letter also adds that the earlier order that had asked Air India to clear the hotel and vacate that area will, therefore, be treated as withdrawn.
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