Jet Airways expands foreign base, adds new Gulf routes

20 Sep 2014 01:15:22

business-standard.com

In its schedule for the coming winter season, Jet Airways is expanding its international services, with new flights to Dubai, Doha and Abu Dhabi. The airline feels increasing foreign operations will boost foreign exchange earnings and offset rupee's depreciation.

New services have been planned to Dubai from Kochi and Mumbai; Doha from Mumbai, Kozhikode and Thiruvanthapuram; and Abu Dhabi from Ahmedabad, Lucknow and Goa. The airline has already announced new flights to Ho Chi Minh City in Vietnam via Bangkok from November, as well as additional flights on the Mumbai-Bangkok and Mumbai-Colombo routes. International operations account for 56 per cent of Jet's overall revenue; the airline plans to increase this to about 60 per cent. It is scaling down domestic services, adding flights on short international routes, and exploring new flights to Yangon and Seychelles. It is also considering resuming services to Kuala Lumpur.

For 2013-14, Jet Airways reported a record loss of Rs 4,129 crore. Now, it is working on a three-year business plan to turn profitable by 2017. The plan includes financial restructuring, a new route-and-network plan and enhancing products. The airline's expansion into the US has been hit by the fact that the Federal Aviation Administration (the aviation authority in the US) has downgraded India. Sources said due to this, the Jet Airways Boeing 777-300ERs, currently on lease to Turkish Airlines, would now be leased to Etihad, Jet's equity partner.

Etihad will upgrade its Delhi-Abu Dhabi service from November, flying Boeing 777-300ER (leased from Jet Airways) instead of the narrow-bodied Airbus A320. Currently, it has two flights a day on the Abu Dhabi-Delhi route (A320 and A330). The airline is likely to add a third flight between Mumbai and Abu Dhabi, though this is yet to be finalised. Currently, Etihad flies 112 flights a week to 10 cities in India (rival Emirates operates 185 weekly flights).

Etihad and Jet Airways did not respond to email queries on their plans.

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