Friday, 21 September 2018

INDIA: Jet Airways Stops Complimentary Meals For Passengers

Jet Airways has suspended complimentary meals option for passengers, who choose to fly in ‘Economy Light’ and ‘Economy Deal’ within India from September 25.

However passengers can buy their meals on-board from the airline’s menu. The customers will be served beverages – including tea and coffee – for free, Jet Airways issued a statement.

Earlier, the meal bill was included in the ticket fare for all the flyers, making the meals complimentary during the flight.

But following the suspension of free meal from September 25, the air tickets for the 2 categories – ‘economy light’ and ‘economy deal’ will be cheaper than the other categories.

The flight plus meal option for domestic flights will remain for ‘Economy Saver’, ‘Economy Classic’ and ‘Economy Flex’ and for all fare options in Premiere.

On international flights, all features and benefits under First Class, Premiere and Economy remain unchanged.

The past six months have been harrowing for India’s oldest private airline, Jet Airways.

Compounding its financial woes, the carrier plunged into fresh trouble this week over safety and tax issues.

The Naresh Goyal-promoted carrier has been in the red for two consecutive quarters and is also under market regulator Securities and Exchange Board of India’s (SEBI) lens.

Jet’s issues are not particular to the airline but symptomatic of a larger malaise. The Indian aviation sector is facing economic headwinds in the form of rising global oil prices and a depreciating rupee.

Jet, for instance, had debt of Rs7,364 crore ($1.01 billion) on its books as of June. Given its precarious financial position, the airline was reported to have even considered slashing salaries.

On Sep. 19, it announced that there would not be free meals on economy class bookings done from Sept. 25.

March 2018, Jet Airways reports a loss of Rs1,036 crore in the Jan-March quarter as revenue declines and costs increase significantly. The company defers the March salaries of some employees citing circumstances beyond its control.

April 2018, Bows out of bidding for Air India citing the complex process.

May 2018, Government refuses to approve Jet’s merger with its subsidiary JetLite, nearly three years after the proposal was made.

June 2018, Jet announces new check-in baggage norms. The 15kg of free check-in luggage for economy class will have to be in one bag. Business class passengers can carry 30kg in two bags.

August 2018, Considers a 25% pay cut for employees.

August 2018, Indefinitely defers announcement of financial results for the April-June quarter of financial year 2019.

August 2018, On Aug. 12, the Directorate General of Civil Aviation announces an audit to assess Jet’s financial health. State Bank of India asks the firm to provide enough collateral for emergency funding.

August 2018, On Aug. 27, the company announces losses of Rs1,323 crore for the April-June 2018 period.

September 2018, On Sep.19, the income-tax department conducts surveys in the company’s Mumbai and Delhi offices over allegations of financial misappropriation.

September 2018, Sep. 20, around 30 passengers on a Jet Airways flight from Mumbai to Jaipur suffer nose and ear bleeding after the cabin crew forgets to activate the internal pressure control. India’s civil aviation minister Suresh Prabhu orders a safety audit of all airlines and airports.


Tourism Observer

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