Tuesday, March 1, 2011

Air India to Focus on the Gulf Region for Profit

Air India
The Air India may soon see resumption of flight to many flights destinations in the Middle East and Gulf region. With the appointment of a New CEO of Air India and various reports suggesting that Air India actually withdrew services from 32 most profitable routes that are now capitalized by Air India competitors, the decks may now be cleared for this strategic move by the airlines.The national carrier of India is also facing many internal crisis such as manpower unrest and pilot protests.



Flights to West Asia account for one-fourth of total revenue and covers all cash costs for the airline, except for a few routes. Recently Air India  Express shifted its base to Kochi and it is almost certain that Air India may follow suit as Kerala is one of the Top destinations for Air Travelers to the Gulf region. But the Air India's competitors  such as Kingfisher airlines and Jet Airways are not worried as they have already been on an aggressive marketing and route expansion spree pushing air India to the Fourth largest airlines position in India.Hefty Government Funding is also expected besides clearing away of Outstanding dues by the Government of India. The major Flights to the gulf region includes Air routes through  Kuwait city, Riyadh, Teheran, Muscat and others.

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