Hyderabad, Oct 7 (UNI) Ruling out any reduction in fares even after the crude prices fell, Indian National carrier, National Aivation company of India Limited (NACIL), has decided to create four Special Business Units (SBUs) by June next year to increase profitability.
As consolidation, the merger of two public sector Airlines, Air India and Indian into NACIL is expected to be through by March next. Work has already started for forming SBUs as the Air line is scouting for partner for generating new revenues from other segments of Aviation business apart from it core business of ferrying air passengers.
The SBUs will focus among others on Maintenance, Repair and Overhaul (MRO) an engineeing services , cargo and ground handling besides training. However, the location for the MRO facility has not yet been decided.
''Airindia, the premier NACIL entity, has already reduced capacities on non-viable sectors under pressure of peaking aviation turbine fuel (APF) we expect to turn profitable by winter 2009,'' Air India Chairman and Managing Director Raghu Menon said during a brief media interaction here today.
Air India is looking at the West Coast of USA, South Africa and Australia for new business and did not miss to indicate that it would shed more unviable routes. ''If the crude prices stabilize around USD 80 a barrel the company could see profit by 2009 winter.
We will plan expansion only after the consalidation saying that the merger (into NACIL) was strategic shift,'' he said.
Even as implimentation of the new SBUs are underway, Air India is seeking the membership of Star alliance to increase its exposure globally and garner profit. Star alliance is a conglomoreate of 162 aviation companies from 21 companies which overlooks operation of 18100 flights daily. Airindia is likely to get full membership by 2009 .
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