Air India to Cut Costs By Rs 14 Billion Next Fiscal

In an attempt to improve its finances, Air India is to cuts its costs by Rs 14 billion ($227 million), or about 6% of its total outlays, in the next financial year.

The airline said in a statement that it would identify "surplus staff", freeze contractual hiring and discontinue flights which are not meeting fuel cost targets, to reduce its variable spending of 140 billion rupees by a tenth.

Restrictions on staff travel and hospitality have also been introduced, Air India said.

Earlier, the state owned airliner was told by the government to improve its finances.

Air India, which controls close to a fifth of India's domestic air travel market, has been losing money for years and has long been criticised for its high costs. In 2012, the government handed the company a $5.8 billion bailout package.

All but one of the major carriers in India are losing money because of high operating costs and some of the lowest fare prices in the world amid intense competition.