Monday, July 17, 2017

For white elephant Air India, Rs 10 crore in savings from non-veg is just bananas

New Delhi: If Air India is a white elephant lurching its way through hundreds of crores in losses, then the Rs 8-10 crore it hopes to save every year by not serving non-veg food in economy class on domestic sectors can be compared to, well, a hand of bananas.
At least, that’s what official figures show.
To put that “Rs 8-10 crore” in perspective, simply glance through the national carrier’s internal reports, and figures provided to the Directorate General of Civil Aviation (DGCA) and monitored by the Comptroller and Auditor General of India (CAG):
*In 2015-16, the airline reported a net loss of over Rs 3,800 crore, and an accumulated debt of over Rs 50,000 crore.
*In 2016, it shelled out Rs 10 crore as compensation to those denied boarding, for cancellations and for flights delayed by over two hours — for domestic flights.
* From 2012 to 2016, it spent Rs 119 crore for accommodating crew in five-star hotels for the Delhi station alone.
* It lost Rs 22.49 crore in 2015 for deferring delivery of three wide-bodied Boeing 777-300 ER aircraft.
* It paid Rs 70 crore as compensation to a lessor for two Airbus A319 aircraft because it could not comply with re-delivery conditions.
* It’s in the red for Rs 472 crore, which is payment pending for VVIP flights, as on March 31, 2016.
The company did not respond to an e-mail from The Indian Express seeking the exact amount it hopes to save by cutting non-vegetarian food from the economy menu on domestic flights. But company officials had clearly indicated last week that this would be in the region of Rs 8-10 crore.
However, records show that what the airline really needs to tweak is its management processes rather than the meal menu.
17/07/17  Pranav Mukul/Indian Express