Air India: National Carrier Air India which is facing thousands of crores in debt and a cash crunch & inevitable disinvestment has implemented a move which may save money would make the airline a little less popular. Two weeks ago Air India management silently cleared a move to non-stop vegetarian meals on board domestic flights which are all economy-class seats. The move has a class element involved as non-veg meals haven’t been struck off the menu in flight which have a business class section.
Cost Cutting By Air India, Non – Veg Food Is Off The Menu for Economy Fliers
Air India sources pay the costs cutting will save seven to eight crore rupees annually. This seven to eight crore is peanuts compared to the enormous crisis the airline actually faces but apparently one of their many cost-cutting measures is to cut of meat from the menu that’s nonsense. Already Air India Debt Burden is at 52000 cr, and losses at 30000 cr.
it doesn’t really make sense. Air India is I think a few maybe a year away from disinvestment because the government has agreed in principle because of 52 thousand crore depth has become untenable. the government cannot sustain the airline anymore. but this is a bizarre economy move because if you’re trying to clear your budgets or improve your budget lines. this is definitely not going to make you very popular And there is definitely a class vice.
Few months ago the Air India had implemented a move that all flights which are domestic flights, which has less than 90 minutes, economy Fliers will not get non-veg meals. But now it has become a blanket domestic single man in which all economy Fliers in the domestic sector will not get gone non-veg meals. Business class which according to Air India pays much more than an economy Fliers will be getting non-veg within meals.
Now what is interesting that when asked about the fact that why can’t you charge more from the customers for giving them a non-vegetarian meal if it is a cost Issue. Air India says that, “we are in a competitive business and in competitive business we cannot increase the prices of an economy class, Because we have to fight contest with the Indigo’s and spices Jets of the world”.
That doesn’t really make sense. If India thinks this is what’s going to make them more competitive then it’s probably a good thing that air India is going to Disinvest in 2-3 years.