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Air India to cut costs by $227m Posted on » Tuesday, January 20, 2015 New Delhi: State-owned carrier Air India is attempting to cut annual costs by 14 billion rupees ($226.6 million) after the government ordered the loss-making airline to improve its finances. Air India said surplus staff should be identified and overtime and expenses slashed, while flights not meeting their fuel costs should be cut. The ministry of civil aviation has directed that a 10 per cent cut be imposed... said its chairman and managing director Robit Nandan in a circular. Staff travel and hospitality have also been restricted and wage increases for local staff... will not be entertained said the circular. Air India, once the country s monopoly airline, has not reported an annual profit since 2007, and received a $5.8bn bailout package from the government in 2012. The carrier now holds just 20pc of the passenger market as once-loyal travellers fly nimbler private-sector rivals who last year were embroiled in a cut-throat price war. Air India has also been keen to improve its reputation after a string of recent technical glitches.