Air India to normalise global operations by mid-August

NEW DELHI: The Air Indiamanagement is looking to normalise international operations, severely affected by a two-month strike by pilots, by mid-August, according to three executives familiar with the strategy.

The national carrier will resume its first major international flight since the strike - which caused losses of nearly Rs 700 crore - from Kochi to Riyadh in the first week of August, they said. Subsequent routes on the international roster, fares and marketing plans for these routes are being discussed under a 'restoration' strategy, they said.

At least 500 Air India pilots who fly international routes launched a strike that stretched to 58 days, demanding exclusive rights to fly the new BoeingDreamliners. They called off their stir on July 3, bowing to pressure from the government and judiciary. One of the officials, a senior member of the management, said Air India will fly only on routes where it makes commercial sense, but there will be no drastic cuts in fares. "The aim is to fly on routes that make profits."

But another executive said the airline might sharply cut fares on select routes. "We will cut fares, but it will depend on route to route." He said Air India has room to offer cheaper tickets than rivals because fares on many international routes have significantly risen since the strike. "Air India's fares will have a dousing effect on rivals that are profiteering. And our fares will be sharply low only when compared with theirs."

The strike forced Air India to trim its international schedule, which helped rival Jet Airwaysstrengthen its hold on these routes. A third executive who has taken stock of the damage caused by the strike said that financial losses apart, Air India's code share agreements (a business arrangement where airlines share flights) were disrupted. The goodwill among passengers too was eroded, he said. "Although the strike largely hit international operations, domestic operations too were hurt because of confusion among customers."

The striking pilots had demanded that colleagues from the erstwhile Indian Airlinesbe barred from flying Dreamliners for fear that it would hurt their career prospects.

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