Now Jet Airways stops free meals for economy passengers
Struggling airline Jet Airways has come up with several measures to cut costs including sub-fleet simplification, reduction in sales and distribution and maintenance costs, route rationalisation and renegotiation of vendor contracts after posting three successive quarterly losses. It has also been cutting down on staff and grounding aircraft.
The latest ‘masterstroke’ from the airline is a plan to discontinue complimentary meals for economy class passengers on its domestic routes under two more fare categories. Jet Airways offers five fare categories under the domestic economy class – light, deal, saver, classic and flex. With the latest announcement, complimentary meals will only be available to customers with the flex option effective from January 7 for bookings made before December 21.
CEO Vinay Dube has stated that the company aims to achieve cost savings of more than Rs 2,000 crore in the coming two years, and has already achieved Rs 500 crore in savings in H1, FY 2017-18. Jet Airways stated in a release, “(The move) reflects the fast-evolving nature of Indian aviation, where an increasing number of guests want the freedom and flexibility to make their own travel choices.”
In related news, Jet Airways is in negotiations with partner Etihad Airways, which owns 24% stake in it, for soft loans and additional equity.