Mumbai: Buoyant over the prospects of getting a financial package of around Rs4,300 crore from the new government, Air India aims at saving Rs1,000 crore a year besides enhancing its market share substantially in the coming years, a top source said.
“If the government gives us a financial package as we are confident it will, it is natural that it will also have some expectations from us. We aim at saving Rs1,000 crore a year, besides enhancing our market share and load-factor considerably,” the source, close to the development said.
The airline also plans to improve its offerings in a bid to enhance its customer-base and regain its brand image in the face of a highly-competitive environment, the source said.
“Before taking a final call on the issue (financial package), the government wants to ensure that the package is utilised in a proper way and for this reason, it asked us to provide a blueprint on all these issues,” the source said.
An Air India proposal seeking Rs1,300 crore additional equity and soft loans worth Rs3,000 crore is pending with the government since last year and the national air-carrier now hopes that the new government will fast-forward this proposal.
Air India plans to utilise the financial package to augment its fleet and also complete the integration of Air India and erstwhile Indian Airlines smoothly, the source said.
According to Indian Brand Equity Foundation, the state-run airline held a 25% share in the $5.6 billion Indian civil aviation market in 2008.