Friday, March 29, 2013

Air India needs to follow low cost carrier model: Panel


New Delhi: The Air India will have to follow the low cost carrier (LCC) way - without shedding its full service tag - to survive. A government panel - examining ways to reduce AI's life-threatening daily revenue-expense deficit of Rs 14 crore - has recommended steps that budget carriers follow globally like selling meals on board; charging for pre-selection of seats and get serious about excess baggage payments. The panel wants AI to unbundle its services so that passengers pay for all other services - like they do in all Indian LCCs and many foreign full service airlines. The report was given to aviation minister Ajit Singh on Thursday, who will take the final call on the panel's recommendations and on implementing them
"It has been recommended that only tea, coffee, cold drinks, peanuts and biscuits be served free of cost to economy passengers flying on domestic routes. Those who want anything more than this like a meal or sandwich should pay. We will still be full service if this is recommended as LCCs only give drinking water in small plastic or paper glass free of cost and charge for everything else like beverages and eatables on both international and domestic flights," said an official.
29/03/13 Saurabh Sinha/Times of India
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