BA stops short-haul meals in cost cutting push

LONDON, July 29 (Reuters) - British Airways BAY.L said on Wednesday it would stop its inflight meal service for short-haul economy passengers, in an attempt to save the debt laden airline 22 million pounds ($36.02 million). Analysts say BA is the most vulnerable among major European airlines to a prolonged industry downturn and, in spite of a near-$1 billion fund raising, it is fighting to cut costs.

BA said it was scrapping the sandwich or full meal served on short-haul flights of less than two and a half hours, but would continue to serve complimentary snacks and drinks.

Passengers will not be able to buy food on board, a system used by budget airlines Ryanair (RYA.I) and easyJet (EZJ.L).

The airline said customers would still differentiate it from budget carriers.

"When you fly with BA, inflight catering remains top class and unlike other airlines it remains free. That remains a key difference," said a spokesman.

The airline will continue to serve breakfast for economy passengers. However, complimentary bottled water would be replaced by plastic cups of water.

A review by BA found it could reduce costs in the catering area without impacting customer experience, the spokesman said.

The airline, which employs around 40,000 people said on certain routes the meal service had around 30 percent wastage.

BA's Chief Executive Willie Walsh has been trying to drive cost cuts at the airline in what he has described to staff as a fight for survival.

Measures have included voluntary redundancies and staff, including Walsh, agreeing to work for free during July. ($1=.6107 Pound) (Reporting by Farah Master; editing by Simon Jessop)