Within the next a few months, Air India will start serving food from India on its flights returning from the Gulf region.
Air
India's Chairman and Managing Director Pradeep Singh Kharola said
Wednesday the airline has started carrying food from India for use
during the journey back to the country, in an attempt to rationalise
catering costs on international flights.
The
loss-making airline has already started using food items stocked from
India during its onward journey to Stockholm, Copenhagen, Birmingham
and Madrid, and use them when returning. It has said food
items purchased from these foreign cities are much more expensive
when compared to Indian cities.
"The
food is taken from here in India in chillers and then it is heated
whenever it has to be used... Catering costs for us are around Rs 600
crore to Rs 800 crore a year. Catering in India is 3-4 times cheaper
as compared to catering in the West," Kharola said.
Within
the next a few months, Air India will start serving food from India
on its flights returning from the Gulf region, he added.
As
a cost-cutting measure, Air India decided in July 2017 to not serve
non-vegetarian food to economy class passengers on its domestic
flights.
"There
are some flights like the ones going to Gulf, Singapore and even some
parts of Europe, where it is possible to upload the food here (in
India) only. Some work is going on in that direction," he said.
"More
important thing is the taste. Whatever you can do, the European
caterer's taste can't match with the Indian caterer, especially when
it comes to Indian food. That is the additional benefit we get. The
main thing is that the costs come down drastically," he added.
The
portion of the food given to passengers would remain exactly the
same, he clarified.
Asked
how much Air India would be able to save with this measure, Kharola
said these are early days and the programme will expand.
Air
India is estimated to have a debt burden of more than Rs 48,000 crore
and the government's efforts for strategic disinvestment of the flag
carrier failed in May last year. It has been making losses since the
merger with Indian Airlines in 2007.
High
interest burden, increasing competition, high airport user charges,
adverse impact of exchange rate variation and liberalised bilaterals
to foreign carriers leading to excess capacity in the market are
among the reasons for the losses, according to the civil aviation
ministry.
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