AI spends 35% more on crew’s lodging in London

Debt-ridden national carrier Air India has booked a new hotel for crew accommodation in London at a cost approximately 35% higher than that paid last month.

Debt-ridden national carrier Air India has booked a new hotel for crew accommodation in London at a cost approximately 35% higher than that paid last month.

HT Image

Sources in the airline told HT that the airline’s commercial department terminated its contract with Holiday Inn in London in June and entered into an agreement with Park Inn, Heathrow for accommodation of cabin crew personnel operating flights to the UK capital.

Owing to the difference in the expenses, the airline’s in-flight services department had objected to the move. According to sources in the department, the loss-making airline is spending 85 pounds (Rs. 7,412) per room per night as against the earlier room tariff of 55 pounds (Rs. 4,798).

The airline, however, continues to pay only 55 pounds for pilots using the same type of rooms in the hotel.

“Someone in the airline needs to explain the logic for spending more, especially at a time when the government is investing taxpayers’ money to revive it,” said a cabin crewmember.

In April, the government had approved a cash infusion of Rs. 30,000 crore over a period of eight years to revive the cash-strapped airline. The airline had reported outstanding loans and dues worth Rs. 67,520 crore, comprising loan on fleet acquisition, vendor bills and accumulated losses.

Losses are believed to have gone further up owing to a strike by the airline’s international fleet pilots, which resulted in grounding of 50% of its foreign flights.

“The airline vigilance department is likely to begin a probe into the deal,” said another senior airline official requesting anonymity. According to the vigilance guidelines, any new deal cannot be approved unless it is vetted by the department that will use its services, in this case the in-flight department. But the deal was allegedly sealed by the airline’s UK office without taking the consent of in-flight services department, added sources.

An AI spokesperson did not respond to HT’s calls and a questionnaire sent to the airline over e-mail.