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May 21, 1998

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Indian Airlines makes profit after 8 years

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Indian Airlines has recorded a turnaround by earning more than Rs 450 million during 1997-98, an achievement seen for the first time in the last eight years.

The airline has launched a vigorous marketing strategy to face the stiff competition from private airline operators, according to an IA spokesman.

As part of the multi-pronged strategy, the airline has begun a direct interaction with customers by eliciting their opinion and suggestions. The airline has also initiated measures to augment its fleet, the spokesman said.

One of the two Airbus A-300 aircraft acquired by the airline has already joined its fleet while the second will arrive soon. With this, the number of A-300 aircraft with the airline will go up to 12. It has also planned to acquire four A-320 aircraft on lease which are expected to join its fleet by next winter, the spokesman said.

Presently the airline has 30 A-320 aircraft. The airline also awaits an early approval for its proposal to induct six 50-seater aircraft for increasing its operations in feeder routes and for use in such tourist stations which have low traffic but can prove profitable to operate with smaller aircraft, he said.

He said the airline has also decided to commercially exploit its inhouse A-300 aircraft maintenance base by lending maintenance services to private operators for a fee.

The airline's jet engine shop in Delhi, also a profit centre, has capability to take up work of other airlines, he added.

UNI

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