Asiana changes in-flight meals to reduce costs

By Park Sae-jin Posted : June 20, 2016, 17:33 Updated : June 20, 2016, 17:33

[Courtesy of Asiana]



South Korea's second largest carrier Asiana Airlines may abandon its glorious title as the world's best for in-flight meals as it struggles with an unavoidable campaign to reduce costs and improve its financial structure.

Airline industry officials say Asiana would introduce "box (travel)" meals used by low-budget carriers instead of regular meals served on trays for ten non-popular flights to Japanese and Southeast Asian cities.

The date for revised services was not set, but analysts said the change underlines Asiana's desperate efforts to cut costs.

Last year Asiana was recognized as the world's best for its economy class services and in-flight meals by Skytrax, a commercial airlines research institute. It was one of the most prestigious awards in the airline industry, and the carrier was highly regarded for its differentiated economy class services, including comfortable seats and various in-flight entertainment.

Asiana has also taken the initiative in globalizing Korean food with its popular in-flight Korean dishes such as nutritious lettuce wraps, boiled pork wraps, and chicken porridge, winning the World's Best Economy Class Onboard Catering.

Asiana saw its worst-ever year in 2015, hit by a sharp fall in air travel and tough competition with budget carriers. It reported a net loss of 81.5 billion won ($70 million) last year, a turnaround from a profit of 63 billion won a year ago. Its share in domestic lines fell to 18.8 percent last year.

The company's balance sheet has improved this year thanks to low oil prices, improved passenger flight rates, and rising air traffic, but analysts painted a gloomy long-term outlook for Asiana.

In April, Asiana's board approved a plan to raise cash reserves and reduce debt through the sale of non-core assets including a 100 percent stake in Kumho Terminal. This month the carrier sold a 50-percent stake in Kumho Asiana Plaza Saigon, a hotel and office operator in Vietnam for some $107.5 million.

Aju News Lim Chang-won = cwlim34@ajunews.com

 
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