Air India to cut costs by Rs 1,400 crore in bid to reduce losses


State-owned carrier Air India is to cuts its costs by Rs 1,400 crore, or about 6 per cent of its total outlays, in the next financial year after the government asked the loss-making airline to improve its finances.
Air India, which controls close to a fifth of India's domestic air travel market, has been losing money for years and has long been criticised for its high costs. In 2012, the government handed the company a $5.8 billion bailout package.
The airline said in a statement late on Sunday that it would identify "surplus staff", freeze contractual hiring and discontinue flights which are not meeting fuel cost targets, to reduce its variable spending of 140 billion rupees by a tenth.
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