Jet plans to sell meals in economy class of some flights

NEW DELHI: Desperate to increase revenue and reduce costs, Jet Airways is planning to start selling meals and beverages in economy class of some of its domestic flights. The airline told BSE on Wednesday that its meeting next Monday — when Q1 result is to be announced — will “take up the matter in relation to the cost reduction initiatives and turnaround plan.”


Sources say the airline is working on a transformation plan that includes things like reducing the high sales & distribution and employee costs. “Bringing in other efficiencies like buy-on-board is part of this. There are several components of this work-in-progress plan, some of which are not moving well like the plan to cut pilot salaries which faced stiff resistance,” said a source.


But the airline knows that a gap between revenue and expenditure for a very long period could spell a problem for it. “While remaining full service carrier (FSC), all possible steps to increase revenue, reduce costs and improve passenger experience will be taken,” said a person in the know of developments.

Responding to whether it will start selling meals on board, a Jet spokesperson said the airline “continually reviews its products and services framework based on guest feedback and its own customer insights gleaned from guest preferences and choices.”

In 2017-18, Jet had a loss of Rs 768 crore. The airline is aiming to cut its non-fuel costs by 12-15per cent, which means about Rs 2,133-2,667 crore.

Jet, Air India and Tata Group’s Vistara are the three FSCs in India. Vistara will from August 29 give the option of a basic economy fare called ‘lite’ where flyers will need to buy meals on board like they do on LCCs. This will be an option while the other regular economy fares will remain where Vistara passengers get meals without any extra charge.