Kingfisher gets Rs 530 crore lift from cost cutting

Kingfisher Airlines has been able to save over Rs 100 crore by replacing expat pilots with Indians while the total non-fuel cost reduction for the airline has been as high as Rs 530 crore.

Among the other cost-reduction exercise carried out by the airline, reduction in lease costs through redelivery of non-operational aircraft and lease renewals at lower rentals, a total of Rs 176 crore was saved and on account of reduction in other operating cost by tightening controls which includes renegotiation of contracts, an additional amount of Rs 246 crore was saved.

While the number of aircraft has been reduced by 20 per cent to 64, aircraft utilization has been increased by 11 per cent to 12 hours for Airbus and 10.3 hours for ATRs.