Jet Airways inducts Boeing jets, to introduce biz class seats

Jet Airways has decided to induct two B737s to its fleet in May, indicating that Indian aviation is on a strong comeback trail. The airline will also gradually introduce business class in all its JetKonnect airplanes as the demand from its premium card holders — silver, gold and platinum members — for the business class has grown.

"We will lease two Boeing aircraft from leasing company BOC Aviation. It would be deployed on domestic and short-haul international routes," two persons familiar with the development said.

The country's largest private airline had been very quick to respond to recessionary trend in the sector. It leased out jets to foreign carriers and converted its flights into alleconomy class called JetKonnect. "Shortly, we will introduce eight business class seats in all JetKonnect aircraft except ATRs. We have seen healthy trend in booking after introduction of business class seats in eight aircraft," the official said.

Domestic airlines flew 39.67 lakh passengers in March, up 23% over the corresponding month last year. Airlines posted robust growth during this period in spite of the fact that March is traditionally a lean month.

Source: Economic Times

Jet Airways to ramp up local, international networks

Jet Airways, the country’s top private airline, is recasting itself as a network carrier by fortifying its international and domestic connectivity to make the most of the global economic recovery.

“Jet is looking to explore new destination strategies,” said Jet Airways chief commercial officer Sudheer Raghavan, adding that the carrier will target routes that do not have a traditional gestation period of 18 months to turn profitable.

Jet is likely to add flights on routes like Delhi-Hong Kong, Singapore-Delhi as well as destinations like Bangkok and the Gulf. It will also increase the connectivity to Europe in the coming months. Jet’s strategy is a sign that it is shedding the caution necessitated by the slowdown.

Airlines across the globe have struggled in recent years against surging fuel prices and the slowdown. As costs ratcheted up, the number of passengers fell sharply. But with economies improving, passengers are slowly returning and their numbers grew 20% in 2009 from a year ago.

The Naresh Goyal-owned airline wants to be at the forefront of the revival. The carrier will utilise the sixth freedom right under the aviation freedom rights that allows an airline to use its domicile as a transit point. Jet already uses destinations like Thiruvananthapuram to connect to Mumbai and Dhaka and Kathmandu.

Jet will use its current hub at the Mumbai airport for souping up the network, but as its international operations expand, it will also turn the Delhi airport into a hub, said Mr Raghavan. “We are in talks with GMR Holdings (the Delhi airport operator) for establishing facilities,” he said. Jet’s international operations contribute about 60% of revenues with passenger occupancy levels of up to 84%.

For strengthening its regional connectivity, the airline will add four ATRs to its fleet in six months. Jet will also ask the government to allow immigration and custom clearances at airports in non-metros as well. “Foreign carriers are allowed to offer these facilities,” a Jet official said.

Jet is also revamping its fleet to make the product portfolio more flexible, as more Indian carriers get permission to fly abroad. The airline plans to offer eight business class seats on its low-cost carrier, Jet Konnect.

“We have already reconfigured seven of the 18 Jet Konnect 4aircraft,” said Jet Airways commercial strategy and investor relations vice-president KG Vishwanath, adding that the so-called Jet Select cabin gives the airline an advantage over competition.

Source: Economic Times

Domestic airlines to lose Rs 20 cr a day as ash cloud spreads

Indian carriers flying to European destinations are likely to lose Rs 20 crore a day owing to flight cancellations due to the huge ash cloud from an Icelandic volcano that has precipitated the worst air travel chaos since the September 11 attacks. Air India, Jet Airways and Kingfisher Airlines have cancelled over 50 flights in the last four days, as airports in Europe remain shut, hitting travel to the US and Canada as well.

Meanwhile, Air India has scheduled flights on the India-US route for Monday. Jet Airways operated flights via Athens to US and Canada on Saturday.

According to the International Air Transport Association, airlines across the world are collectively losing $200 million a day due to cancelled flights.

Says Ankur Bhatia, MD, Amadeus India, “ Over 28,000 flights operate in European airports but the number has reduced to 11,000 due to the volcanic disruptions. Indian carriers are also impacted financially since there are no take-offs and landings on the network. The revenues of airlines will descent.” He further added European authorities believe that northern and eastern European air space will remain closed for the next several days, at least.

Industry analysts say on long-haul destinations, the employee to aircraft ratio is over 200 per aircraft. In such a scenario, airlines will have to pay their employees despite no operations on the sector.

This incident comes at a time when Indian carriers were trying to cash in on the peak outbound travel season from India. Generally, carriers earn around 50% of the total annual revenues from international operations.

Jet Airways, which cancelled four flights on the India-London and London-India sector, said it is monitoring the situation and has worked closely with relevant authorities in evaluating and mounting flights to and from the US and Canada.

Jet Airways has ensured that the chosen route via Athens is one that would avoid the volcanic ash-affected air space.

The carrier, which majorly flies to most destinations in Europe, the US and Asia among others, had 27,073 departures in the December quarter of FY2010 with 75%-plus load factors.

Kingfisher too has cancelled its regular flights on the sector like Air India.

Meanwhile, International Air Transport Association’s (IATA) initial estimates of the financial impact is in excess of $200 million per day for the industry, but this figure does not take into account factors like additional costs for re-routing aircraft, care for stranded passengers and stranded aircraft...

Source: Financial Express

Ludhiana-Delhi flight fails to take off

The much-awaited Ludhiana-New Delhi test flight has been put on hold for the time being. The operations, which were to start on Tuesday, were cancelled at the eleventh hour.

Airport officials claim the operations, hanging fire for the last eight years, will start around April 17. But sources in the Shiromani Akali Dal (SAD) claim the test flight will take off only after April 25, when Deputy Chief Minister Sukhbir Singh Badal returns from his week-long trip to the US. The Junior Badal is expected to launch the operations in the city.

Sources said Air India will be replaced by a private airline company to set up the operations.

VP Jain, incharge, Sahnewal Airport, though, is still optimistic. “The operations will start very soon. We received the cancellation information in the morning and now the same has been scheduled for April 17. It is just a delay in the test flight but the residents should not feel discouraged as we are ready to initiate regular flights as per the previously announced schedule of May 1. There would be no further delay.” Sources, meanwhile, said the hitches in the take off of the project included the choice of airline and the timings. The Punjab government wants the flight to take off at nine in the morning so that a person has the entire day in hand. The authorities, however, have scheduled these flights either too early in the morning or towards the noon. Apart from this, MPs and MLAs want Indian Airlines to run the flight for they get to fly free, authorities, though, are more interested in the private players. Along with Kingfisher Airlines, Indigo and Spice Jet are other key players who could run the flight. MLAs and MPs have to get their tickets re-imbursed in case they fly in private airlines.

Source: Indian Express

Spicejet better buy than Jet Airways & Kingfisher Airlines: KSEMA Fincon Ltd.

Seshadri Bharathan, MD & CEO, KSEMA Fincon Ltd. in an interview to ET NOW said that Spicejet is a better buy compared to Jet Airways or a Kingfisher Airlines. Airlines has the highest load factor of more than 82% apart from that the company also is profitable last quarter they had operating profit of 110 Crores. Very few airlines in the world are profitable and Spicejet is among one of the very few airlines that is profitable.

Most people that we speak to speak about investing in a Spicejet or suppose to a Jet Airways or a Kingfisher would you one look at the aviation pack and two would you choose a Spicejet over the other two?

I agree that Spicejet is a better buy compared to Jet Airways or a Kingfisher Airlines reasons are very clear the airlines has the highest load factor of more than 82% apart from that the company also is profitable last quarter they had operating profit of 110 Crores. Very few airlines in the world are profitable and Spicejet is among one of the very few airlines that is profitable and there is lot of PE interest to buy stake in this company which would keep the stock interest alive in the markets.

Source: Economic Times