Jet’s low cost subsidiary, “JetLite” will stop serving free water, toffees and snacks on its flights. This action will start with effect from August 8, 2008 onwards. Hence, the statement in which the company once strongly believed is no more a concern to them now. The slogan says: “A passenger is like a guest at home who can’t be charged for the food served on board.” The other LCC’S (Low cost carriers) like IndiGo, Spice Jet and Deccan have long been selling snacks on their flights. Even JetLite will join this list now. Last month, Spice-Jet and AI (Domestic) had stopped giving free toffees.
According to SpiceJet’s statistic record, their annual expense on snack boxes was over Rs.2 crore. They were only able to give cold snacks and water while there was a great demand for hot beverages and food. Now they will be able to offer a choice of hot snacks for a price of Rs. 70 to Rs. 100. JetLite’s loss for the fiscal is estimated to be in range of Rs. 550 to 600 crore. The airline has already cut several flights and is also giving up expensive airport office spaces in some places where that work can be done at Jet’s available offices. High losses have left the airline with no option but to look at every cost very carefully.