In cost-cutting mode, Air India targets cheese for premium passengers

Three decades ago, American Airlines famously saved $40,000 by removing one olive from each passenger’s salad plate. Today, cash-strapped Air India is halving the quantity of cheese board carried for premium passengers on its international flights and has cut down its catering cost by Rs 2.5 crore.

This is part of an elaborate cost-cutting exercise that the Maharaja has embarked on as operating expenses have mounted and the government’s promised fund infusion is nowhere in sight.

“Inflight caterers load cheese boards on flights. The cabin crew later serves them to premium flyers. There was a lot of wastage... Instead of taking it off the menu, we have halved the quantity and the annual saving is expected to be Rs 2.5 crore,” said a source.


While all aspects are being examined for cutting expenses, the biggest item (apart from loan servicing) is the operating cost and the price of aviation turbine fuel (ATF). AI’s annual fuel cost is Rs 8,500 crore, which rose by Rs 65 crore after October’s 7.3% jet fuel price hike. The mantra for fuel saving: fly slow on west-to-east routes like, say London-Delhi, and keep aircraft as light as possible.

“On east-bound routes, a number of flights arrive ahead of schedule due to favourable tail winds. So on days when flights from west to east expect favourable tail winds, we will ask pilots to fly slower so that they save fuel and still land on time,” said an official.