Kingfisher to start international service while Air India cuts costs

Indian carrier Kingfisher Airlines will commence international service on Sept. 3, company officials told the Indian press over the weekend.

With one of the largest orders of any airline on the globe and an intent to heavily invest in cargo operations, the international move is significant for Kingfisher, as well as early. Under civil aviation laws in India, an airline must operate domestically for five years before receiving an international operator's license. Kingfisher began operating in 2005, but last year acquired Deccan Air, another domestic carrier that began operating in 2003. The aviation ministry deemed the merged entity eligible for the international license this year.

Kingfisher will start operations with a Bangalore to London service using an A330-200.

Meanwhile, Air India executives said last week they expect to save $250 million through March by invoking a host of cost-cutting measures, Live Mint reported Monday.

These measures include curtailing domestic and international flights, surrendering leased planes, phasing out old ones, reducing inventory of spares, outsourcing jobs and eliminating perks to senior executives, the newspaper reported.

State-run Air India indicated it will cut 15 percent to 20 percent of its routes over the winter, including some to the United States and Europe, as it tries to eliminate loss-making services.

The newspaper said that India's aviation sector will likely post losses of $2 billion this year after losing $1 billion last year. Much of the growth in losses is attributed to the price spike in fuel, with domestic airlines particularly vulnerable since aviation fuel in India costs 80 percent more than in the United States and Europe. 

Source: American Shipper