New Delhi, Nov 04: Indian Airlines has reduced its losses by more than 20 per cent over the budget estimates during the first quarter of this fiscal, Civil Aviation Minister Rajiv Pratap Rudy said today. The losses of the public sector domestic carrier came down from an estimated Rs 58.02 crore to Rs 44.65 crore due to an aggressive marketing strategy involving a host of promotional and marketing initiatives, he told the Parliamentary Consultative Committee attached to his ministry.
About Air India, he said the airline had formed a subsidiary called Air India Air Transport Services Ltd for taking over its entire ground-handling activities. The objective was to offer competitive rates by improving the present level of revenues earned by the carrier through ground handling.
Both the airlines were slowly recovering from the after-effects of the US-led war in Iraq and SARS, he said.
Rudy said a working group constituted by the ministry had finalised a draft concession agreement for Bangalore international airport.
A formal shareholders agreement had also been entered into for the Hyderabad airport between Airports Authority of India (AAI), Andhra Pradesh government and the joint venture partner, he told the committee.