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AI cost cutting plan has peanuts for fliers

HT Correspondent, Hindustan Times  New Delhi, March 28, 2013
First Published: 23:54 IST(28/3/2013) | Last Updated: 01:05 IST(29/3/2013)

A committee constituted by the government to suggest cost cutting measures for bleeding national carrier Air India (AI) has suggested drastic measures, which if implemented could result in an annual saving of Rs. 3240 crore for the flag carrier.


The committee submitted its report, containing 46 recommendations, on Thursday.

The main recommendations include serving only tea, coffee, cold drinks, peanuts and biscuits free of cost to economy passengers flying on domestic routes. Passengers, the committee has recommended, should pay for anything more than this like a meal or sandwich.

An average domestic meal on AI flight costs Rs. 175 and implementing this recommendation will bring down the same to Rs. 25. The total saving estimated from this front alone is Rs. 100 crore per annum.

The committee wants passengers to pay for preferential seats of their choice which have extra leg space.

The committee, whose members included AI joint managing director Nasir Ali, has recommended that the airline crew on international flights be put up at hotels near the airport instead of those in the city.

Another recommendation is to shut down its offices in many foreign cities like Rome and Washington where the airline does not fly.

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