I think some issues are being mixed up here.
Topic deals with AIX.
Upgrading of senior F/Os to Captains instead of taking expats for Captains is an issue with AI not AIX. I doubt any senior AI F/Os will want to shift from a 747 or 310 fleet to a NG and that too leaving their BOM or DEL base to come to COK?
AIXs biggest market right now is TRV/COK/CCJ to ME , not BOM and DEL. This is also the reason why the BOM/DEL route got the chop first when there has been a crew shortage.
In addition to the fuel there is also the tax on the same. Kerala has now virtually removed the taxes on International flights which earlier AI had to pay, so that is a substantial saving. Plus the ground crew (commerical etc) and even cabin crew are not paid AI union wages, instead substantially less.So there is a saving there as well.
Kerala Gulf fares are heavily discounted and this is a volume market. Unlike popular perception, there are takers for the higher end of the AIX fares as well which will still be about a coiuple of thousand Rs lower than the other players (a considerable amount to most passengers). So things should not be as bad as is made out.
Can some one explain about the payload penalty part.
Cheerio