Air India Ltd will drastically lower its aircraft-to-employees ratio—an efficiency metric that’s key to its turnaround by November.
The ratio for the airline will drop to 1:100 from 1:265 now, bettering Lufthansa German Airlines’ 1:127, Singapore Airlines’ 1:140, andBritish Airways’ 1:178.
Legacy carriers such as Air India tend to have more employees per aircraft, adding to cost. It has become crucial to keep this ratio low to be able to compete with low-fare carriers that operate with as few employees as required to keep costs tight. Air India employs some 28,000 people.
“The cabinet has already approved in principle the operationalization of ground handling and aircraft repair companies, and it is proposed to make these companies independent units effective 1 November,” said a top Air India executive.
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