AIR India is making new product and distribution moves as part of a US$360 million financial restructuring plan, which will see it adding more economy-class seats and appointing GSAs in 56 countries.
The five-year GSA contracts are meant to garner new markets, as the airline is poised to launch several international routes from New Delhi and Mumbai this year, especially with the entry of its first 787 Dreamliner into service in summer.
Due to low demand for business-class seats, Air India is also reconfiguring 62 Airbus A320s in its fleet, leaving 14 with all-economy seats, while 43 will see the number of business-class seats reduced.
Anil Punjabi, chairman-east, Travel Agents Federation of India, said: “Air India is now looking realistically at its bottom line. More economy seats will help hugely in increasing domestic market share, and given its large network in the country will keep fares low. GSAs are the way to go for international markets.”
In the wake of the economic slowdown in 2008-2009, Air India shut down several of its overseas offices to cut down on operational costs. There are currently 10 overseas offices owned and staffed by the airline.
