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JPL-2012-08 - PROFIT
JPL-2012-10 - TRAFFIC DEVELOPMENT
JPL-2012-10 - TRAFFIC GROWTH
JPL-2013-03 - KOLKATA DOMESTIC TOP 10
JPL-2013-03 - KOLKATA TOP INTNL AIRLINES
JPL-2013-03 - KOLKATA TRAFFIC
JPL-2013-04 - EHD LINK
JPL-2013-05 - UPDATE-A
JPL-2013-05 - UPDATE-B
JPL-2013-05 - UPDATE-C
JPL-2013-05 - UPDATE-D
JPL-2013-05 - UPDATE-E
JPL-2013-05 - UPDATE-F
JPL-2013-05 - UPDATE-G
JPL-2013-05 - UPDATE-H
JPL-2013-08 - FLIGHT CREW HIRING
JPL-2014-01 - DOMESTIC CAPACITY
JPL-2014-01 - INTERNATIONAL MARKET
JPL-2014-01 - TO DAMMAN
JPL-2014-05-INDIA TOP 15 INTNL AIRLINES
JPL-2014-10 - ETIHAD AIRWAYS PARTNERS
JPL-2014-11 - TO HO CHI MINH CITY
JPL-CABIN ATTENDANTS - 2013-05
JPL-PREMIUM BUSINESS CLASS - 2013-05
JPL-VISIT NORTHERN INDIA
JPL-VISIT NORTHERN INDIA-A
JPL-VISIT THE TAJ MAHAL
FORMED IN 1992 AND. STARTED OPERATIONS IN 1993. DOMESTIC & INTERNATIONAL, SCHEDULED & CHARTER, PASSENGER & CARGO, JET AIRPLANE SERVICES.
SM CENTRE, 5TH FLOOR
MUMBAI MAHARASHTRA 400 059, INDIA
INDIA (REPUBLIC OF INDIA) WAS ESTABLISHED IN 1947, IT COVERS AN AREA OF 3,287,590 SQ KM, ITS POPULATION IS 970 MILLION, ITS CAPITAL CITY IS NEW DELHI, AND ITS OFFICIAL LANGUAGES ARE HINDI AND ENGLISH.
JUNE 1993: INDIA'S 2ND LARGEST INDEPENDENT AIRLINE.
PARENT COMPANY IS TAILWINDS, DUBAI, UAE.
FLIES TO AHMEDEBAD, GOA, AURANGABAD, BAGDOGRA, BANGALORE, CALICUT, COCHIN, COIMBATORE, GUWAHATI, HYDERABAD, MADRAS, MANAGALORE, PUNE, AND INDORE.
PLANS FOR FLEET EXPANSION IN 1 YEAR, TO 8 737-300'S, & 20, BY END OF 3RD YEAR.
4 737-33A'S (CFM56-3C1) (L/N 1955; 1984; 1739; & 1741), DRY LEASED FROM (AWW), EX-(VSP) (1ST 737-300 IN INDIA). DAMP LEASE TILL OCTOBER 1993, THEN DRY LEASE.
JULY 1993: TECHNICAL AUDIT BY GARRY SPELLMAN, CONSULTANT, AVIATION ASSISTANCE COMPANY.
AUGUST 1993: KUWAIT AIRWAYS (KUW), & GULF AIR (GUL) TO OWN 20% EACH. MALAYSIAN (MAS) MAY BUY (GUL) SHARE.
APRIL 1994: 1ST 737-400 (CFM56-3C-1), EX-(MAS), IN INDIA.
"A" & "B "CHECKS BY AIRWORKS INDIA, BOMBAY. "C" CHECKS BY (AWW).
JANUARY 1994: JET AIRWAYS IS PRESENTLY AN AIR-TAXI OPERATOR WITH FOUR 737-300S.
JANUARY 1995: A CHANGE IN INDIAN LAW CLEARED JET AIRWAYS (JPL) TO APPLY FOR SCHEDULED AIRLINE STATUS, WHICH WAS GRANTED.
APRIL 1995: FISCAL YEAR (FY) 1994 = +$2.87 MILLION (NET PROFIT): 1.7 MILLION PASSENGERS (PAX).
AUGUST 1995: +2 ORDERS (1995-09) 737-400, (GUI) LEASED.
SEPTEMBER 1995: 1 737-400 (CFM56-3C-1), (GUI) LEASED.
APRIL 1996: P K RATTA, VP ENGINEERING & MAINTENANCE, RESIGNED.
NEW ROUTES LINKING MUMBAI (BOMBAY), WITH BARODA JAIPUR, TRIVANDRUM, AND MADRAS.
2 737-4S3'S (24165; 24166), EX-(ALK), (TBC) LEASED. NOW 4 737-300'S, AND 6 737-400'S.
JUNE 1996: 1 737-400 (24687), EX-(BER), (GUI) 3 YEAR LEASED.
SEPTEMBER 1996: TO CALCUTTA. FREQUENT FLYER ALLIANCE WITH (BAB), WHO HAS 174 DESTINATIONS, IN 83 COUNTRIES, WITH (JPL)'S 19 POINTS IN INDIA.
INDUSTRY ANALYSTS REPORTED, THAT UNLIKE OTHER AIR TAXI OPERATORS, (JPL) DOES NOT FACE CONTINUING PROBLEMS, OF UNPAID FUEL BILLS, AND TAKEOVER BIDS.
LIKELY TO ORDER UP TO 10 AIRPLANES (INCLUDING OPTION DURING NEXT 6 MONTHS - EVALUATING 737'S & A320'S).
OCTOBER 1996: 1 737-500 (25191), (GUI) LEASED, 104 PAX, 2 CLASS.
DECEMBER 1996: $320 MILLION, 4 ORDERS (1997-02) 737-400'S, & 6 ORDERS (1998-02) 737-800'S (1ST 737 NEW GENERATION IN INDIA & SE ASIA). DUE TO UNAVAILABILITY OF 737-400, FOR 6 MONTH LEASE, WILL BE USING AN A320, (GUI) WET-LEASED FOR 6 MONTHS, DURING HEAVY MAINTENANCE OF 737'S.
JANUARY 1997: 2,300 EMPLOYEES (INCLUDING 135 FLIGHT CREW (FC), 330 CABIN ATTENDANTS (CA).
NOW SERVES 23 DESTINATIONS.
1996 FY = 2.2 MILLION PAX (1.6 MILLION); 79.3% LF (LOAD FACTOR). FUEL = 34% OF COSTS.
UTILIZES EXPERT CONSULTANTS FROM (KLM), (BAB), & (MAS), WITH INDIAN BORN UNDERSTUDIES. DOES OWN "C" MAINTENANCE CHECKS. SIGNS A (KLM) COOPERATION PACT.
3 737-400'S TO BE DELIVERED IN 1997.
APRIL 1997: 1,860 EMPLOYEES (INCLUDING 175 FC & 241 MT).
PLANS TO FLY TO MADRAS (CHENNAI), DELHI, LUCKNOW, AND NAGPORE, BY THE END OF 1997.
CHANGE OF INDIAN GOVERNMENT RESULTS IN RULING OF NO FOREIGN AIRLINE INVESTMENT ALLOWED, WITH STAKES TO BE SOLD WITHIN 6 MONTHS. "NON-AVIATION" COMPANIES ARE STILL ALLOWED TO HOLD A MAX 40%.
TRYING TO LEASE 2 737-430'S (27000; 27001), EX-(DLH).
MAY 1997: INTEREST SHOWN IN ACQUIRING 2 737-400'S, WHICH ASIANA (AAR) IS LOOKING FOR BUYERS FOR (7 & 8/1997) DELIVERY.
JUNE 1997: FY 1996 = +$50.4 MILLION. (ANZ) GRINDLAYS INVESTMENT BANK PROVIDING LEASE-PURCHASE DEAL, WORTH $63 MILLION.
2 737-400'S, EX-(AAR) IN (7 & 8/97), SUNROCK (SNR) LEASED. ALSO, +2 (GUI) LEASED, & +2 737-400'S FROM BOEING IN 1997. 2 737-400'S, (MAS) LEASED.
JULY 1997: COVERS 25 CITIES, WITH 85 DAILY SERVICES.
PLANNED FLEET OF 22-25 AIRPLANES, GOVT ALREADY OK'S 15.
AGREES TO SHED THE (GUL)/(KUW) EQUITY.
AUGUST 1997: 1 737-400 (25775), ORIGINALLY (AAR) ORDER, (SNR) LEASED. 4 ORDERS (1998-10) 737-700'S, TOMBO LEASED.
SEPTEMBER 1997: APPLIED FOR INTERNATIONAL ROUTES TO COLOMBO, KARACHI, AND KUALA LUMPUR.
NOW OPERATING 12 737'S, PLANS DELIVERIES SHORTLY OF (PV207; PV208), LEASE 2 737-400'S (PW421; PW422), EX-(STU), IN 1997/10 NEGOTIATIONS FOR 4 737-700'S LEASED IN 1998/10, +2 NEW 737-400'S (1997/10), AND 737-800'S IN 1998/10 (TOMBO AVIATION LEASED). 1 737-400 DELIVERY MAY BE LATE.
NOVEMBER 1997: 1ST OF 10 737-45R'S FROM BOEING. 737-400'S (PV271, PV272), (GUI) LEASED (29032).
DECEMBER 1997: PURCHASED BACK 40% (20% (GUL), & 20% (KUW) FROM TAILWINDS, ISLE OF MAN (HOLDING CO) FOR $8 MILLION.
NEW ROUTES DELHI - PUNE, AND BANGALORE, AND CHENNAI - COIMBATORE.
ROGER PAGE, ASSISTANT VP ENGINEERING & MAINTENANCE.
1 737-400 (25664), EX-(STU), (GUI) LEASED. PLANS TO LEASE 2ND (25663).
JANUARY 1998: LOCAL MEDIA, STATES (JPL) IS TO SET UP A MAINTENANCE CENTER, & FLIGHT CREW TRAINING SCHOOL, AT HYDERABAD.
CURRENTLY HIRES A SMALL HANGAR, AT MUMBAI, FOR "C" MAINTENANCE CHECKS.
4 ORDERS (1998/10) 737-700'S, TOMBO AVIATION LEASED.
MARCH 1998: 737-400 DELIVERY (3016).
APRIL 1998: 2 737-400'S, (MAS) LEASED, AND 3 737-500'S, (MAS) LEASED.
1,860 EMPLOYEES (INCLUDING 175 FLIGHT CREW (FC) & 241 MAINTENANCE TECHNICIANS (MT)).
MAY 1998: 2 737-300'S RETURNED TO ANSETT (AWW).
JULY 1998: DAILY SERVICE TO DELHI, AND ADDED SERVICE TO BHAVNAGAR, & IMPHAL.
4TH 737-45R (PW024) DELIVERY. NEW GOVERNMENT RULE PREVENTS LEASING AIRPLANES FROM FOREIGN AIRLINES, THUS (JPL) CANNOT USE 5 737-400/-500, EX-(MAS). 5/3 ORDERS ATR72'S.
SEPTEMBER 1998: 737-86N, GECAS (GEH) LEASED.
OCTOBER 1998: NOW 2 737-800'S (28575; 28578), (GEH) LEASED. 5/3 ORDERS ATR72-500 FOR HYDERABAD - VIZAG, DELHI - JODHPUR, & CALCUTTA - NAGPUR. RETURNED 737-4Y0 (24682) TO (GUI). DOMESTIC AIRFARES INCREASE 11.2%.
NOVEMBER 1998: 737-71Q (29043), TOMBO LEASED, DELIVERY.
DECEMBER 1998: NEW SERVICE TO TOURIST SPOTS, KHAJURAHO, IMPHAL, & VARANASI (FOR TOTAL 29 CITIES).
3 737-71Q'S (29044; 29045), & 1 737-85R (164-29036) DELIVERIES.
JANUARY 1999: CHENNAI (MADRAS) TO PORT BLAIR, ANDAMAN ISLAND (737).
737-33A (24790) RETURNED TO (AWW). 737-5H6 (27355), (GEH) LEASED, 737-71Q (29046), & 737-85R (29037) DELIVERIES.
APRIL 1999: 4,230 EMPLOYEES (INCLUDING 243 FLIGHT CREW (FC), 682 CABIN ATTENDANTS (CA), & 691 MAINTENANCE TECHNICIANS (MT)).
(http://www.jetairways.com). SITA: BOMXT9W.
MAY 1999: 2 737-400'S TO BE RETURNED TO BOEING (HANWAY CORP) (PW113; PW114) AFTER "C" MAINTENANCE CHECK. POSSIBLE LEASE BY SAHARA (SAQ), OR ALLIANCE (ALX).
JUNE 1999: AT PARIS AIR SHOW, $550 MILLION, 10 ORDERS (2001-02) 737-800'S. 5 ORDERS (1999-09) ATR72-500'S. 737-300 (24791) RETURNED TO ANSETT (AWW), LEASED TO AIR ROSE (RSE).
JULY 1999: SAROJ DATTA, CEO, REPLACES NIKOS KARDASSIS, WHO RESIGNED.
AUGUST 1999: HAS 45% OF DOMESTIC MARKET.
STEPHEN JAGANNATHAN, SR VP ENGINEERING & MAINTENANCE, EX-SINGAPORE (SIA).
SEPTEMBER 1999: 737-85R (326-29039, VT-JNL) DELIVERY.
OCTOBER 1999: 2 ATR72-500 DELIVERIES (1ST IN INDIA).
NOVEMBER 1999: (JPL) HAS HIRED A HIGH NUMBER OF EX-PATRIATE PROFESSIONALS WITH GLOBAL EXPERIENCE: N LIAO, HEAD MARKETING; EX-(SIA); N SUNDERAJ, EX-(SIA), SR GENERAL MANAGER SALES; HONG SIM SOO, EX-(SIA), GENERAL MANAGER RESERVATIONS & YIELD MANAGEMENT;, K JEYAKANTHAN, EX-(MAS), VP ENGINEERING & MAINTENANCE; ROLAND THOMAS, EX-(MAS) VP FLIGHT OPERATIONS.
(JPL) BOARD INCLUDES: VIC DUNGCA, EX-PHILIPPINE (PAL) SR VP; GERT VAN DER MEER, EX-SOUTH AFRICAN (SAA), CEO; ALI GANDHOUR, EX-ROYAL JORDANIAN (RJA), FOUNDER & PRESIDENT.
ATR72-212A (593) DELIVERY.
JANUARY 2000: PLANS $6M, MAINTENANCE HANGAR, & $7M, AVIATION ACADEMY, AT MUMBAI, AND $6M, MAINTENANCE HANGAR, AT NEW DELHI.
1999 = 4.8M PASSENGERS (HAS 35% OF DOMESTIC MARKET).
737-800 DELIVERY. RETIRED 1 737-400, SINCE ONLY ALLOWED TO OPERATE 25 737'S. 737-85R (465-29040, VT-JNM) DELIVERY.
FEBRUARY 2000: STEVE FORTE, CEO, EX-MERIDIANA (ALS).
FLIES TO 36 DESTINATIONS.
1999 = 4.8 MILLION PASSENGERS.
737-85R (29041, VT-JNN) DELIVERY.
APRIL 2000: 4,230 EMPLOYEES (INCLUDING 243 FLIGHT CREW (FC), 682 CABIN ATTENDANTS (CA), & 691 MAINTENANCE TECHNICIANS (MT)).
2 737-5H6'S (27354; 27355) RETURNED TO (GEH), LEASED TO BRITISH AIRWAYS (BAB). 737-4YO (24235), RETURNED TO (GEH).
MAY 2000: 737-4YO (24687), RETURNED TO (GEH), PEGASUS (PGS) 2 YEAR WET-LEASED.
JUNE 2000: MR C KURIAN, GENERAL MANAGER ENGINEERING, EX-SINGAPORE (SIA).
+2 ORDERS (2000-08) 737-76N'S (28630; 28635).
JULY 2000: NOW OPERATES TO 31 DOMESTIC DESTINATIONS, AND HAS 38% MARKET SHARE.
1999 = 4.1 BILLION (RPK) TRAFFIC (+20.1%); 64.7% LF LOAD FACTOR; 37.6 MILLION (FTK) FREIGHT; 4.87 MILLION PASSENGERS (PAX) (+21.4%); 4,230 EMPLOYEES.
+5 ATR72-500'S, AND POSSIBLY 25 ORDERS FAIRCHILD DORNIER 928JETS, 75 PAX (LATER, DORNIER COLLAPSED).
AUGUST 2000: PLANS TO CONVERT SOME OF ITS OPTIONS FOR ITS 737-900'S, WITH DELIVERIES IN 2001.
SEPTEMBER 2000: LOCAL STATE GOVT CALLED MAHARASHTRA IS TRYING TO GET $7M, FOR BACK-TAXES ON (JPL) AIRPLANES, DELIVERED IN PREVIOUS YEARS, CONSEQUENTLY, NEXT 737-700 WILL BE DELIVERED, AND BASED IN NEW DELHI.
1 737-76N, GECAS (GEH) LEASED (664-28630, VT-JNP).
OCTOBER 2000: 1 737-5H6 (2646-27355) RETURNED TO (GEH).
DECEMBER 2000: 1ST INDIAN AIRLINE TO ACQUIRE ACCESS TO myboeingfleet.com.
ALTHOUGH PLANS IN 2001, TO TAKE DELIVERY OF 3 737-700'S, & 1 -800, (JPL) MAY CHANGE ORDER TO -600/-900'S. 1 737-76N (28635, VT-JNQ), GECAS (GEF) LEASED. 1 737-5YO (25191) RETURNED TO (GUI), LEASED TO RIO-SUL (ROS).
JANUARY 2001: 1 737-800 DELIVERY.
FEBRUARY 2001: AIR TRANSPORT WORLD (ATW) AWARD FOR "BEST MARKET DEVELOPMENT."
KUA SAI LING, SENIOR GENERAL MANAGER LOGISTICS, EX-MALAYSIA (MAS). SITHAM NADARAJA, VP ENGINEERING & MAINTENANCE, EX-(MAS).
737-73A, ANSETT (AWW) LEASED (28498, VT-JNR), AND 1 737-85R (749-30403, VT-JNR) DELIVERIES.
MARCH 2001: 1 737-76N (417-28609, /99 03 02), (GEF) LEASED.
APRIL 2001: 5,270 EMPLOYEES.
EXPANDS SERVICE, WITH DELHI - MUMBAI - COIMBATORE, AND CALCUTTA - BHUBANESHWAR, LATTER TO CONTINUE TO BANGALORE (3/WEEK), AND TO CHENNAI (2/WEEK).
PLANS TO INCREASE FLEET TO 37 AIRPLANES, INCLUDING 29 737'S & 8 ATR72'S. ALSO, HOPES TO ACQUIRE 757'S, IN ANTICIPATION OF ACQUIRING INTERNATIONAL ROUTES, ESPECIALLY TO MIDDLE EAST COUNTRIES. WILL START OFF WITH 2 757'S IN 2002, AND 3 LATER, WITH USE ON HIGH-DENSITY DOMESTIC ROUTES UNTIL INTERNATIONAL ROUTES ARE APPROVED. PLANS TO SELL 2 737-400'S, EX-(MAS) AND REPLACE WITH 737NG'S.
JUNE 2001: GOVERNMENT REJECTS APPROVAL FOR INTERNATIONAL FLIGHTS. NOW OPERATES TO 38 DOMESTIC DESTINATIONS, WITH 200 DAILY FLIGHTS, WITH 40% MARKET.
TO LEH, LADAKH.
3 ORDERS ATR72-500'S SAFAIR (SFA) LEASED 8/01.
AUGUST 2001: 1 737-75R DELIVERY. TO BE BASED AT DELHI, FOR OPERATIONS TO HYDERABAD, AND A 10TH FLIGHT TO MUMBAI.
1 ATR72, LEASED, FOR SERVICE TO KOLHAPUR (MAHARASHTRA), JODHPUR (RAJASTHAN), AND BHOPAL (MADHYA PRADESH). ALSO, DELHI TO LUDHIANA (PUNJAB). THESE NEW FLIGHTS MAKE A TOTAL OF 43 DESTINATIONS AND 221 DAILY FLIGHTS. IN 2001-09, DELHI-CHANDIGARH (737-700, REPLACING ATR72-500).
SEPTEMBER 2001: 2 ORDERS (2001-11) 737-76Q'S (30279; 30280), BOULLIOUN (BOU) LEASED, REPLACING 2 737-4H6'S (27086; 27168), WHICH ARE BEING TRADED IN, AS PART OF THE TRANSACTION.
OCTOBER 2001: 1 ATR72-212A (679, VT-JCG) DELIVERY.
NOVEMBER 2001: (JPL)'S MAINTENANCE HANGAR IN NEW DELHI, NEARS COMPLETION. INCLUDING OFFICE AND SHOP SPACE, WILL CATER FOR AN ATR72 AIRPLANE. PLANS TO EXTEND, TO HANDLE 737-800'S, 757'S, & 767'S. HAS SECURED LAND AT MUMBAI, WITH CONSTRUCTION STARTING SOON, ON 2ND HANGAR FACILITY. WILL BUILD MAINTENANCE HANGAR, SHOPS AND ENGRG OFFICES. HANGAR IS CAPABLE OF ACCOMMODATING 1 737, AND THE FRONT END OF 2ND 737. AT PRESENT, HEAVY MAINTENANCE IS ACCOMPLISHED AT BANGALORE, WITH LINE MAINTENANCE AT NEW DELHI. HQ, AND FLIGHT OPERATIONS, WILL BE LOCATED AT ANOTHER SITE.
737-75R (30406, VT-JNW) DELIVERY.
March 2002: Achieves highest domestic market share with: (JPL) 48.9%; (IND) 39.9%; (SAQ) 6.4%.
April 2002: 5,965 employees (including 271 Flight Crew (FC); 704 Cabin Attendants (CA); & 880 Maintenance Technicians (MT).
Owner/shareholders: Tailwinds (owned by Naresh Goyal) (100%).
June 2002: 737-85R (30408, VT-JNY) delivery.
July 2002: 10/10 orders (2004-06) Embraer 175's, 75Y (launch customer). Naresh Goyal, Chairman, states (JPL) plans to acquire an undisclosed number of 737-900's in 2003. 737-85R (30409, VT-JNZ) delivery.
November 2002: 737-85R (30410, VT-JGA) delivery.
December 2002: Steve Forte resigned.
Delhi - Chandigarh.
February 2003: 737-85R (30411, VT-JGB), delivery.
April 2003: Fiscal Year (FY) 2002 = 6 Million passengers.
6,529 employees (including 403 Flight Crew (FC), 782 Cabin Attendants (CA), & 956 Maintenance Technicians (MT)).
May 2003: 1st 737-95R (30412, VT-JGC) delivery, 32C, 138Y.
June 2003: Wolfgang Prock-Schauer, CEO, ex-Chairman of board of Star Alliance. Peter Leuthi, COO, ex-Swissair (SWS).
July 2003: 2 737-4H6's (27086; 27168), returned to Anzef Ltd, leased to Skynet Asia (SNU).
September 2003: 2002 = 5.16 Billion (RPK) (+9.7%); +12.5% (ASK); 61.6% LF (-1.6); 6.3 Million (PAX) (+9.8%).
2002 TOP WORLD AIRLINES TRAFFIC (RPK) (Billion):
95 (QTA) 6.20; 96 (COI) 5.96; 97 (AAL) (EAGLE) 5.94; 98 (LOT) 5.87; 99 (FRO) 5.45; 100 (WJI) 5.49; 101 (MAU) 5.34; 102 (ATLANTIC SE) 5.31; 103 (JPL) 5.16; 104 (SHA) 5.15; 105 (AVI) 5.10; 106 (VLR) 4.96; 107 (SKYWEST) 4.82; 108 (SBL) 4.75; 109 (CNW) 4.67.
October 2003: Selects Mercator's revenue accounting and frequent-flier solutions.
Sri Lanka and India agreed to liberalize air transport between the two countries. This means that Air Sahara (SAQ) and Jet Airways (JPL) can now fly to Sri Lanka, which is seen as a landmark decision, granting international flight rights to private Indian carriers.
737-95R (33740, VT-JGD) delivery.
November 2003: Contract with Lufthansa Technik (LTK) (DLH) to assume responsibility over 7 years for total component maintenance of its 6 737-400's and 27 737NG's.
(JPL) operates 255 flights daily to 41 domestic destinations.
January 2004: Kolkata (Calcutta) - Agartala (737-700, 3/week). Kolkata - Agartala - Guwahati (737-700, 4/week).
737-45R (29035, VT-JBA), Boeing (TBC) leased.
March 2004: Launches international operations with a flight to Sri Lanka.
April 2004: Indian government OK's Jet Airways (JPL) and Air Sahara (SAQ) to fly daily flights to Nepal and Bangladesh.
May 2004: 6,579 employees (including 406 Flight Crew (FC), 732 Cabin Attendants (CA), & 988 Maintenance Technicians (MT)).
Will implement the SabreSonic technology package under a 5-year agreement with Sabre Airline Solutions.
Delhi - Kathmandu (daily). Plans service to Dhaka in 2004-06 or 2004-07.
Pakistan government rejected proposals by the Indian government to allow Air Sahara (SAQ) and Jet Airways (JPL) to serve Pakistan as part of India's liberalization of air services to South Asian Association for Regional Cooperation members.
June 2004: Is studying launch of international flights to England, Germany, or France. Wolfgang Prock-Scauer, CEO stated "Air-India (AIN) and Indian Airlines (IND) carry just 30% of all international traffic out of India, while 70% is in the hands of foreign airlines. Indian carriers do not take full advantage of all their international traffic rights." Currently, (JPL) serves two international destinations, Colombo, and Kathmandu. (JPL) claims a 45% share of the domestic market.
July 2004: Launches Sabre Airline Solutions customer care features - - Customer Insight & Customer Data Delivery - - that are part of its new-generation passenger management suite.
September 2004: Kolkata (Calcutta) to Dhaka.
October 2004: Strategic regional alliance with South African Airways (SAA) aimed at improving connections between each other's flights as well as code sharing and cooperating on baggage handling, check-in, and other technology. Political links between India and South Africa have been strengthened by a 3-way alliance with Brazil, while South Africa also has close business and cultural links with India thanks to its economically influential Indian population.
November 2004: 2,300 employees.
1st 737-83N (32663, EI-DIL), (GEF) leased with blended winglets delivery.
March 2005: Closes an Initial Public Offering (IPO) that values (JPL) at Rp 94.5 Billion/$2.2 Billion. Proceeds to be used to repay debt and fund capital expenditures, including additional airplanes, a new training center and upgraded maintenance facilities.
Naresh Goyal, Chairman, who previously owned 100% of (JPL) through his company Tailwinds, will keep an 80% stake.
(JPL) currently operates 34 737's & 8 ATR42's. In 2005 will take delivery of 7 737-800's, order +7 737-800's and 3 A340-300's, South African Airways (SAA) leased. The 737-800's will be used to launch flights to Kuala Lumpur & Singapore, and the A340-300's for flights to London.
April 2005: Launched service to Singapore. In 2005-05, to Kuala Lumpur (daily) and to London (daily). Code share with United Airlines (UAL), on (JPL) flights Mumbai to London and on flights from Mumbai to other cities in India. (JPL) will code share on (UAL) flights from London to the USA. In 2005-07, to New York (6/week).
$695 Million, 10 orders (2006-02) 737-800'S. Also 7 orders 737-800's leased.
May 2005: Jet Airways (JPL) is India's largest private domestic airline providing scheduled, jet airplane services to 42 destinations across the country. Also flies to neighboring countries.
6,685 employees (including 409 Flight Crew (FC); 781 Cain Attendants (CA); & 1,103 Maintenance Technicians (MT)).
(IATA) Code: 9W - 589. (ICAO) Code: JAI (Callsign - JET AIRWAYS).
Parent organization/shareholders: Tailwinds (owned by Naresh Goyal, founder) (100%).
Alliances: South African Airways (SAA).
4 orders (2006-02) A330-200, (ILF) leased. 2 A340-313X's (643, VT-JWA; VT-JXB), South African Airways (SAA) leased for operations to New York and the UK.
June 2005: Priorities include expanding long-haul operation. Wants to increase its daily flight to London to 3/day as soon as possible. Has just bought +2 slots at London Heathrow, one from United Airlines (UAL). Wants to add cities such as Birmingham and Manchester and swap widebodies for 737's currently operated on some Asian routes, such as to Singapore. Prefers to open new routes to China rather than Japan, along with routes to Africa, such as Durban and Nairobi. Next step to launch non-stops to New York.
3 737-86N's (32578; 32579, EI-DKR; 32577, EI-DKX), (GEF) leased. 6/6 orders (2006-11) 777-200LR's (GE90-115), 4/4 orders (2006-11) 777-300ER's (GE90-115), & 10/10 orders (2007-02) A330-200. +2 orders (2006-05) A330-200, (ILF) leased, 226 PAX (6-abreast flatbed business (C), & 8-abreast economy (Y) for European destinations including Zurich, Rome, & Milan, plus Africa). The A330-200's will also be used on a mix of domestic and international flights including to Asia destinations such as Hong Kong & Singapore.
July 2005: 737-86N (32577, VT-JGH), (GEF) leased.
August 2005: 7,082 employees (+5.9%).
Singapore and India inked an agreement that allows airlines of both countries to expand services between Singapore and Kolkata, Bangalore and Hyderabad. Fifth freedom rights also were granted.
September 2005: UK and India officially signed a bilateral air services treaty replacing the one dating to 1951. The bilateral formalizes new traffic rights that will allow UK airlines to operate 56 services per week between London Heathrow and Delhi or Mumbai, 14 weekly services from the UK to Bangalore and to Chennai and seven weekly services to each or any other destination in India by the end of next year. Indian airlines can operate a similar number of services on routes between Heathrow and Delhi or Mumbai and may provide unlimited service to other UK destinations. In addition, the agreement provides for unlimited cargo services.
September 2005: Jet Airways (JPL) is betting heavily on international growth and much of its anticipated $3 billion in new investment will go toward the acquisition of a new long-haul fleet, said CEO Wolfgang Prock-Schauer. "My plan for the future is that 50% of our business comes from the domestic and 50% from the international business," Prock-Schauer said. Between April 2007 and March 2008, (JPL) will take delivery of 10 777-300s and six A330s. "Including two ILFC (ILF) leased A330s and an additional four A330s, we will have 22 long-haul airplanes," he said. The first A330 arrives in May 2006. In 2007, six additional 737NGs join the fleet.
The plan for the long-haul airplanes is to fly to up to four destinations in North America, with cities such as New York, Chicago and Toronto among the obvious candidates. By next summer, (JPL) will have three daily flights to London. In addition to its Mumbai route, it will open a daily Delhi - London service on October 30.
South Africa and China are also on the agenda, followed by continental European destinations such as Paris and a city in Germany as well as a secondary destination in the UK - - he suggested Birmingham as a possibility. In addition to the firm airplanes, (JPL) holds options for 10 777s, 10 A330s and 10 737NGs.
With all the new airplanes coming online, pilot requirements are huge and (JPL) has begun a global search for potential candidates. It currently employs 490 pilots (FC) and will need 1,264 (FC) by 2009, when it will operate 89 airplanes. At present it is looking for 60 - 80 737 pilots (FC) as well as 20 (FC) for the A320 fleet.
Swiss International Air Lines (CSR) reportedly plans to supply up to 60 pilots to China Airlines (CHI) for the carrier's 747, A330 and A340 fleets. Pilots have been made surplus to Swiss needs owing to its decision to phase out its Embraer 145s and Saab 2000s. Another 15 pilots may find some work with Etihad Airways (EHD). Also, Jet Airways (JPL) of India is looking for some A340 pilots (FC) from Swiss (CSR).
737-76N (32738, VT-JGL), (GEF) leased.
October 2005: Jet Airways (JPL) proposed allowing foreign pilots to stay three years instead of one to solve India's chronic pilot shortage. According to Hindu Business Line, (JPL) CEO Wolfgang Prock-Schauer has proposed the initiative to the government. At the same time, insiders at (JPL) have confirmed that the airline is talking with Air Sahara (SAQ) about taking a stake. Air Sahara (SAQ) approached Ernst and Young to assist it with capital raising options to meet its expansion plans.
(JPL) will install its own 737 maintenance, repair, overhaul (MRO) and training center in cooperation with an international (MRO) provider. "We are currently in talks with companies like Lufthansa (DLH) Technik [and] SR Technik (SWS), which show great interest in cooperating with us," CEO Wolfgang Prock-Schauer said in Mumbai. "First priority is to handle our own constantly growing fleet. But I also can imagine that (JPL) will become a center of competence for 737 overhaul to other airlines, especially for the booming Indian aviation market." He added that a decision will be made within the next year.
(JPL) will put approximately $200 million over the next five years into maintenance expansion. Around 8% of its total costs currently are for maintenance. To date, it is able only to handle 737 "C" maintenance checks in a leased hangar in Bangalore. It also has facilities for line maintenance in Delhi, Mumbai and Chennai.
The carrier will open a $12 million hangar in Mumbai by December, allowing it to implement "D" maintenance checks on 737s. "We plan in the next two years up to 18 737 "D" checks," said VP-Technical Sithma Nadarajah. Capacity of the new hangar, which has one bay available for heavy overhaul and two for other work, will be up to eight "D" checks per year. Currently, the fleet of 34 737NGs and six 737 Classics is flown to Singapore or Kuala Lumpur for heavy maintenance. Ten new 737NGs will join the fleet in 2006 - 2007.
(JPL) employs 1,200 maintenance technicians (MT) and plans to add and train +150 to +200 every year. The target is to do overhaul work by 2009 on its incoming widebody fleet. It will take delivery of 10 777-300ERs beginning in April 2007 and the first of six new A330s will arrive in about six months.
Jet Airways (JPL) will begin new daily services to Singapore from Chennai, Singapore and Bangalore by the end of October. It also will start a daily Mumbai - Bangkok service and has plans to fly from Delhi to London Heathrow via Amritsar.
Separately, (JPL) announced it will be the first Indian airline to offer a Web check-in facility. The site was developed by Sabre Airline Solutions.
(JPL) confirmed its order, announced at the Paris Air Show, for 10/10 A330-200s. Deliveries will begin in first-quarter 2007, making (JPL) the first Indian carrier to receive A330s. It currently operates A340s leased from South African Airways (SAA) on services to London. These airplanes will be replaced with 777-300ERs. Jet Airways (JPL) signed a $400 million order for (GE90-115B) engines to power its 10 777-300ERs.
November 2005: Indian state-run oil companies reduced the price of aviation turbine fuel by -1.85% effective November 1 due to the drop in international oil prices, Newindpress reported. For domestic airlines the price per kiloliter has been cut approximately -2% to INR35,761/$792.31 in Delhi and INR36,715 in Mumbai. For international carriers the price has gone down -4% to $609 per kiloliter in Delhi and $601 in Mumbai.
Jet Airways (JPL) of India will install first class cabins in its new 777-300ER fleet. Deliveries begin in 2007. Jet (JPL) will continue to operate a two-class configuration in its A340-300Es and also in its 12 A330-200s on order.
December 2005: Jet Airways (JPL) inaugurated nonstop service from Chennai to Singapore. The airline will operate a daily flight using its 737-800.
CAE signed a deal with Jet Airways (JPL) for a second 737-800 full-flight simulator and integrated procedures trainer for delivery in early 2007 and an upgrade for an existing simulator. It also sold a 737 Maintenance Training Simulator System to Japan Airlines (JAL) and an A320 full-flight simulator and two flight training devices (A320 and 737) to an undisclosed customer. The contracts are worth a combined C$48 million/$41.7 million.
January 2006: Jet Airways (JPL) is close to a deal to acquire Air Sahara (SAQ) or to enter into a marketing alliance, according to media reports in India. Previously, Kingfisher Airlines (KFH) reportedly bid to take over 100% of Air Sahara (SAQ). The airline earlier said that financial advisers Ernst and Young valued it at between $750 million and $1 billion.
(JPL) later announced it is buying much smaller Air Sahara (SAQ) for $500 million, a step that will give it more than half of India's domestic market based on 2005 boardings, according to press reports. The two carriers had been in talks for some time. Both began flying in 1993 during the first phase of India's airline liberalization. (JPL) completed an initial public offering (IPO) of 20% in early 2005, leaving Chairman Naresh Goyal holding 80%.
(JPL) carried 9 million passengers in 2005 while Air Sahara (SAQ) flew 3.5 million, according to the Associated Press. Indian Airlines (IND) carried 8.7 million. The deal is subject to government approval.
(JPL)'s net profits fell -53% to +INR610 million/+$13.8 million in the third fiscal quarter ended Dec 31, a "positive result," according to Executive Director Saroj Datta, who cited "industrywide capacity addition that was far in excess of demand growth," surging fuel costs that outstripped fare increases and operating losses on Jet (JPL)'s new international routes.
The report came on the heels of the carrier's $500 million acquisition of (SAQ), which will create the country's largest domestic airline.
Fiscal year-to-date net profit was down -13% from the corresponding nine months in 2004 to +INR2.2 billion. Revenue climbed +30% to INR41.7 billion and EBITDAR was up +7% to INR10.5 billion.
(JPL) announced it will inaugurate service from Amritsar to Birmingham UK as soon as it obtains the rights and plans to operate 4 flights a week.
(JPL) operates 50 airplanes: Three A340-300s, five 737-400s (a sixth is in storage), eight ATR 72s and 34 737NGs. It has 10 A330-200s, 10 777s and 10 737NGs on order. Air Sahara (SAQ) operates 24 airplanes: Six CRJ200s, four 737-300s, three 737-400s and 11 737NGs. One CRJ is in storage, as are a 767-300ER and a 737-400. It has two 737-800s on order.
February 2006: Jet Airways (JPL) inaugurated Bangalore to Tiruvananthapuram and Chennai to Tiruvananthapuram service. Flights operate with an ATR72-500.
(JPL) is expected to issue a secondary stock offering in both the Indian and international markets to fund its $500 million acquisition of Sahara Airlines (SAQ) and airplane purchases. (JPL) advised Indian authorities it will hold an extraordinary general meeting February 28 to address the issue.
(JPL)'s acquisition of competitor Air Sahara (SAQ) for $500 million is running into a little turbulence as hundreds of passengers were left stranded after 25 (SAQ) pilots (FC) went on strike over what they call a lack of clarity over their future. There is little chance of the pilots losing their jobs, but they may face salary cuts as the new group readies itself for battle with startups such as Air Deccan (DCC) and Kingfisher (KFH). (SAQ) employs 90 pilots (FC).
(JPL), fresh off its acquisition of (SAQ), is considering ordering the A380 or 747-8, CEO Wolfgang Prock-Schauer said. He said delivery positions for either airplane will not be available before the 2010 - 2011 timeframe, "when we will need more capacity."
Between April 2007 and March 2008, (JPL) takes delivery of 10 777-300ERs and six A330s. "Including two ILFC (ILF)-leased A330s and an additional four A330s, we will have 22 long-haul airplanes," Prock-Schauer said. He also said that discussions to possibly switch some of the 777-300ER orders for -200LRs have ended; "We realized it is better to have a bigger airplane and plan one stop on very long routes. Because we have also a new first class onboard, we need more capacity."
The merger with (SAQ) is on track, with the latter expected to be integrated in a year. (JPL) wants to assume the international traffic rights from (SAQ) to Southeast Asia as well as to London.
Meanwhile, (JPL) will start a second daily Mumbai - London Heathrow service with the summer schedule, bringing its UK service to a total of three daily flights including one from New Delhi.
(JPL) set an Indian record by flying 36,406 passengers, the most ever by one carrier in a single day. Load factor was 86%.
Garry Kingshott, Chief Commercial Officer (CCO), ex-Ansett (ASN) executive. Peter Luethi, COO, is to leave the airline in April 2006.
(JPL) committed to equip its 10 A330-243s from an order confirmed in October 2005 with (GE) (CF6-80E1)s. The deal is worth more than >$300 million. Delivery of the new airplanes will begin next year.
(JPL) is offering customers an online tool to trace missing baggage. It said it is the first Indian carrier to offer such a service.
March 2006: Australia and India entered into a more liberal air services agreement that will open the door for airlines from both countries to establish commercial partnerships and develop services. The new accord, announced on the eve of Australian Prime Minister John Howard's visit to India, provides for multiple designation of carriers, codesharing and service on more routes.
Qantas (QAN), with three flights per week to Mumbai, is the only airline that currently operates direct service between the countries. It also plans to expand access to the fast-growing market by establishing links to Delhi. A number of Indian operators, including Air-India (AIN) and Jet Airways (JPL), are believed to be considering introducing Australian service.
The Union Cabinet in India approved the revised pact. Parliamentary Affairs Minister P R Dasmunshi told reporters that under the new agreement, both countries will have "the right to designate as many airlines as they wish." The opening up of air services between the countries is expected to stimulate trade and tourism and encourage greater investment.
(JPL) will introduce a second daily flight on the London Heathrow - Mumbai route from July 10. (JPL) also operates a daily Delhi - London service using A340-300s leased from South African Airways (SAA).
Sabre Airline Solutions said (JPL) chose its AirFlite Schedule Manager and AirFlite Fleet Manager software.
737-85R (34798, VT-JGP), delivery.
May 2006: An impressive fourth fiscal quarter ended March 31, allowed Jet Airways (JPL) to recover from a slower first nine months and report a +15% increase in its full-year profit to +INR4.5 billion/+$100.1 million. After three quarters, Jet (JPL)'s net earnings lagged -13.2% behind the same nine months in 2004, but a +71% surge in fourth-quarter profit to +INR2.3 billion, accounted for "strong" full-year results. "We remain the market leader and the most profitable airline in India but we operate in a challenging environment," Chairman, Naresh Goyal said.
Full-year revenues increased +39% to INR61.4 billion while EBITDAR fell -3% to INR13.6 billion. Jet (JPL) did not provide expense figures. Passenger traffic climbed +14% to 9.6 billion (RPK)s against a +11% lift in capacity to 13.3 billion (ASK)s. Load factor rose +0.7 point to 72% LF.
Fourth-quarter revenues grew +61% to INR19.7 billion, but EBITDAR dropped -28% to INR3.1 billion. Traffic and capacity each rose +20% to 2.8 billion (RPK)s and 3.9 billion (ASK)s, respectively. Load factor declined -1.4 points to 72% LF.
Jet Airways (JPL) named Dale Moss COO. He most recently was Director, Worldwide Sales & Marketing-Worldwide Cargo for British Airways (BAB).
(JPL) is finalizing the integration of Sahara Airlines (SAQ), which operates a fleet of 20 737s and seven CRJ200s. "This is one of the most exciting opportunities in the history of (JPL) and we are committed to capturing the full synergies of this acquisition with a sense of urgency," Goyal said.
Indian domestic airports recorded a near +10% increase in cargo traffic in the 12 months to March 31 over the previous corresponding period. The biggest increases were recorded at Tiruchi (up +114.8%), Patna (up +37.2%), Bangalore (up +23.6%), Delhi (up +11.2%) and Chennai (up +10.8%). International freight traffic also grew strongly, rising +11.7% to 920,150 tonnes. The biggest gains were recorded at Tiruchi (+130%), Coimbatore (+102%), Bangalore (+27.3%) and Hyderabad (+21.7%).
Boeing will install Class 3 Electronic Flight Bag (EFB)s on 10 new (JPL) 777-300ERs. Airplane delivery is scheduled to start early next year. (JPL) will be the first Indian carrier to operate a Class 3 (EFB).
A330-203 (751, VT-JWD), (ILF) leased.
June 2006: Jet Airways (JPL) is looking to expand international routes and announced it plans on starting service into Thailand as soon as it gets the necessary approvals. The airline would like to operate a daily Delhi - Bangkok as well as Kolkata - Bangkok service.
(JPL)'s new service from Amritsar to London, has been postponed indefinitely.
(JPL) is planning to phase our Air Sahara (SAQ)'s brand. Amongst the names under consideration for the airline are "TransJet." The new identity and corporate logo should only exist for the interim period, until the deal goes through, and Air Sahara (SAQ) is fully merged with (JPL).
Five months after sealing a merger that would have created an airline with control of nearly half the Indian market, (JPL) and (SAQ) have parted ways in acrimonious fashion and will head to court. Neither carrier issued a statement, but press reports from India said that (JPL), which agreed in January to purchase its rival for $500 million, pulled out of the deal after struggling (SAQ) refused to renegotiate for a lower price ahead of the deadline. One report suggested (JPL) wanted to cut the purchase price by -20% to -25%. (SAQ) reportedly holds a 9% - 13% market share, while (JPL) has 35%. Analysts were quoted as saying (JPL) would have had to pour too much money into the smaller carrier to turn it around. The airlines have filed lawsuits against each other to prevent the withdrawal of money placed into a common account, "The Times of India" reported. "From Thursday, we are going to run our airline as if there had not been any deal," (SAQ) President, Alok Sharma told "The Hindu." "It is our firm belief that we will be able to run the airline as we have been doing over the past 13 years."
(JPL) had been running a significant part of (SAQ)'s operation since April, but according to NDTV Profit, (SAQ) lost -INR1.64 billion/-$35.6 million in the two months following the January deal, and doubled its liabilities in the five months prior to the signing to INR4.43 billion. Discrepancies between its numbers and those reached by (JPL) and its auditors, Ernst & Young, added to the difficulties. The carriers continued to trade barbs on a variety of issues in the press.
(JPL) and (SAQ) continued to spar in a Lucknow court over the fate of a INR5 billion/$108.5 million escrow account tied to (JPL)'s aborted acquisition of its rival. After hearing arguments, a judge froze the account and postponed the hearing until June 30, according to Indian press reports. The airlines were debating the Lucknow court's jurisdiction over the case. (SAQ)'s attorney told the court that as far as his client was concerned, the merger "is still subsisting. Only (JPL) is saying that the deal has come to an end," the Press Trust of India reported. "If (JPL) is allowed to walk away with the money it will sound the death knell for (SAQ)."
New details emerged regarding the failed merger of (JPL) and (SAQ) as the legal fight between the carriers escalated and may be headed for India's Supreme Court. In an extensive interview with India's Financial Express, (SAQ) President, Alok Sharma claimed Jet (JPL) wanted to cut its $500 million acquisition price by -10% to -20%, which (SAQ) "summarily rejected," effectively killing the deal. "The main reason behind the breakup is (JPL)'s financial crunch," Sharma said. "They told us, 'Look we have a problem. We are facing a financial problem and we want you to take a cut of -10% to -20%.' We summarily rejected that." He added that (SAQ) was "not willing to compromise on price" and offered an extension beyond the June 21 deadline for completing the takeover, but (JPL) decided to let the deal expire. "I don't blame (JPL), as I understand their market valuation has gone down in recent months, but we cannot suffer with them," Sharma said. (JPL) said it was filing a petition with India's Supreme Court to transfer to the high court all lower court cases revolving around the failed merger, including a disputed $108.5 million escrow account.
Later, (JPL) issued a statement denying it blames the Indian government in part for the failed takeover of (SAQ). "(JPL) maintains that there is no question of 'blame'," the airline said in response to public protests from Civil Aviation Minister, Praful Patel. "Commercial deals are fashioned to respond to events, and they have to be factored in as commercial risk. Government policy, in evolving markets, is always a recognized commercial consideration and is generally dealt with in large commercial deals. The deal was based on some assumptions, which were in turn made conditions precedent. Since they did not materialize, the deal lapsed."
The day before, (JPL) had issued a statement saying that the deal fell through because "conditions related to some permissions being given by the government of India, as well as certain policies relating to mergers and acquisitions of airlines" were not in place by the June 21 deadline.
Patel told reporters that the government's merger policy was in place in May, and that "a government does not make policy to suit a particular airline."
July 2006: Stray dogs, slums and a couple of hundred lawsuits - - modernizing airports in India is not simply a matter of throwing money at the problem. The consortium that won the contract to upgrade Mumbai's Chatrapati Shivaji Airport (BOM) has announced plans to invest about INR70 billion/$1.52 billion over 20 years, but it has conceded that some of its biggest challenges are those that would be foreign to most major international facilities.
"There are drains running through the airport, the Mithi River runs through it, there are slums encroaching on the land, there is a menace of dogs and birds, and there are nearly 400 pending litigations," Sanjay Reddy, managing director of (BOM), told reporters. "But we believe there is a lot of potential that can be unleashed," he said.
Mumbai (BOM) and Delhi were privatized by the Indian government in an attempt to attract investment to upgrade its ageing and shabby airports. (MIAL) is a 74%/26% joint venture of a consortium of India's GVK Group, Airports Company South Africa and Bidvest Group and the state-run airports operator. Netherlands Airport Consultants and Singapore's Changi Airport are advisors to the consortium.
Reddy said $1.26 billion will be invested in the first seven years of its 30-year lease, and plans include a second runway, a new terminal, and new cargo facilities. The money is being raised through a mix of equity, debt and internal accruals.
Jet Airways (JPL) has increased the frequency on its Mumbai to London Heathrow route to 2 flights a day. Both are operated with an A340-300. (JPL), which delayed the start of its Amritsar to London route because of the collapse of the deal with Air Sahara (SAQ) and the unavailability of the (SAQ) 737-800 for the service, will now inaugurate service from Armitsar to London Heathrow on August 4th. The airline will operate 3 flights a week, on Fridays, Saturdays & Sundays, with a leased A330-200. (JPL) will also inaugurate nonstop service from Delhi to Singapore on September 6th. The airline will operate a daily service using a 737NG.
Goodrich (BFG) will supply wheels and brakes for Jet Airways (JPL)'s new fleet of 777-300ERs. Deliveries of the 10 firm/10 option airplanes are expected to begin in March.
(JPL) began operating its first A330-200 between Delhi and London Heathrow (LHR). The airplane seats 226 and is powered by (Trent 772B)s. (JPL) also operates A340-300Es on the daily service. It shifted a A340-300E to its (LHR) - Mumbai route on which it began offering a second daily frequency effective July 10.
(JPL) linked its frequent-flier program with those of Austrian Airlines (AUL) and Thai Airways (TII). (JPL) Privilege members can earn and use miles on flights operated by (AUL) and (TII), whose loyalty program members can do the same on (JPL) flights. Swiss (CSR) entered into a reciprocal loyalty program alliance with (JPL).
Air Deccan (DCC) said its 21.2% market share in June made it India's second-largest airline, passing Indian (IND), which held a 20.8% share, according to (DCC). The Low Cost Carrier (LCC) operates 14 A320s and 21 ATR turboprops on 265 daily flights to 55 domestic destinations.
August 2006: India's Jet Airways (JPL), which launched service to London last year, confirmed that it has suspended UK employee Asmin Tariq, who was one of 24 people arrested in London as a suspect in the terrorist conspiracy uncovered last week. Tariq was a security employee absorbed by (JPL), when the carrier ended its contract with his former employer, G4S, which has relationships with British Airways (BAB), Singapore Airlines (SIA), Thai Airways (TII), (SAS) and others, according to (JPL). "All G4S employees, including those transferred to (JPL), had been cleared by the UK Government Security Agency . . . to work at [London Heathrow]," the airline said. "Tariq is being suspended pending a full investigation, having not reported for duty for the past couple of days."
(JPL) added +INR150/+$3.20 to its INR500 surcharge on all domestic fares.
Heavy losses on its startup international operations dragged (JPL) to a -INR450 million/-$9.7 million loss in the first fiscal quarter ended June 30, from a +INR953 million profit in the year-ago period. And the carrier issued a warning on the domestic front as well, saying that it has concern for the industry "in view of irrational pricing by airlines simply seeking to gain market share."
(JPL) earned +INR118 million on its domestic services and lost -INR713 million on flights to London Heathrow, Kathmandu, Colombo, Kuala Lumpur and Singapore, most of which launched around the same time last year. It said the four Asian routes were profitable, but the operation as a whole was a loser on seasonal issues and significantly increased capacity by competitors. It said it will address the problem "through a combination of passenger and cargo sales initiatives and network partnerships with other established airlines."
Revenues rose +25% to INR16.8 billion. The carrier flew 2.94 billion (RPK)s passenger traffic during the quarter, an increase of +39%, against a +44% rise in capacity to 4.04 billion (ASK)s. Load factor dropped -2.3 points to 72.9% LF, but its domestic load factor of 75% LF "remains above the industry average." Still, (JPL) said, "We are witnessing an unprecedented increase in domestic capacity, even as all airlines contend with declining yields, higher input costs and infrastructure constraints." It estimated that India's first-quarter domestic capacity rose +48% year-over-year. Domestic yield was relatively high compared to its competitors but still fell -9%, the airline said. It made up some of the difference with a May 1 fuel surcharge worth INR444 million. An additional INR200 surcharge was put in place on July 7.
(JPL) said the near-term outlook remains "difficult" as it enters its "traditionally weak" quarter. It is looking to manage yields more effectively and increase cargo revenues while containing costs.
The Centre for Asia Pacific Aviation said the Low Cost Carrier (LCC) market share in India is expected to reach 70% by 2010, as full-service airlines lose 1.5 points every month. "We do not expect this rate to slow in the short term, given the profile of current fleet orders. (LCC)s could therefore control over 35% of the domestic market by the end of 2006 and pass 50% some time in [the second half of 2007]," CAPA CEO, Indian Subcontinent and Middle East, Kapil Kaul said, adding that 60 million passengers are expected to fly on Indian carriers in 2010.
(JPL) launched thrice-weekly Amritsar - London Heathrow service aboard A330-200s. (JPL) will inaugurate nonstop service from New Delhi to Singapore on September 6th. The airline will operate daily flights using a 737-800.
Qantas (QAN) and (JPL) concluded a codeshare arrangement that will expand (QAN)'s network within India from September 6. It will code share on (JPL) flights from Singapore to Delhi and Mumbai, offering connections to all Australian capitals. The code share will complement (QAN)'s thrice-weekly, A330 Singapore - Mumbai service.
(JPL) announced successful completion of the (IATA) Operational Safety Audit.
Northrop Grumman (GRU) announced that (JPL) chose its next-generation data internal reference units for use on A330-200s.
737-85R (34797, VT-JGQ), delivery.
September 2006: Jet Airways (JPL) opened its $15 million hangar at Mumbai Chatrapati Shivaji International Airport. It can handle "C" checks and is a major Maintenance Repair & Overhaul (MRO) facility on 737 family and ATR airplanes, accommodating two of the former and one of the latter at once. "This significant improvement in the maintenance infrastructure of (JPL) will form a solid basis for the further expansion of the airline," CEO, Wolfgang Prock-Schauer said.
(JPL) unveiled its Sky Screen on-demand In-Flight Entertainment (IFE) system, available in both classes aboard its 737-800s. It will be deployed initially on flights from Mumbai to Delhi, Bangalore and Hyderabad before expanding across the fleet. (JPL) operates 43 737s.
(JPL) started a daily New Delhi - Singapore (SIN) service using 737-800's, bringing to three the number of nonstop routes it operates to (SIN) with service from Chennai and Mumbai. (JPL) announced it plans on starting service from Kolkata and New Delhi to Bangkok. The plan is to inaugurate these routes later in the coming winter schedule using 737s. The airline is also looking to increase frequency on its UK routes starting with the Amritsar -London service which is currently operated 3x a week.
The airline also announced its domestic fuel surcharge was raised to INR750/$16.20 from INR650.
737-85R (34799, VT-JGR), delivery.
October 2006: Adds former (IATA) Director General, Pierre Jeanniot and Indian film star Shah Rukh Khan to its board.
Dramatic capacity increases and a "softening yield environment" resulted in another difficult quarter for India's Jet Airways (JPL), which reported a loss after tax of -INR551 million/-$12.1 million in the second fiscal period ended September 30 compared to a +INR686 million profit in the year-ago quarter.
Revenues rose +38% to INR18.2 billion, a figure boosted by the sale and leaseback of three 737s during the quarter, that generated +INR1.62 billion. EBITDAR plunged -90% to INR334 million.
Jet (JPL) flew 2.79 billion (RPK)s passenger traffic, a year-over-year increase of +25%, aboard its fleet of 57 airplanes. But capacity soared +40% to 4.39 billion (ASK)s, dropping load factor -7.7 points to 63.5% LF. "The demand-supply imbalance has resulted in a soft yield environment for the industry," it noted. It said approximately 140,000 seats were offered industrywide per day on domestic flights during September, compared to 100,000 a year ago.
The airline posted a pre-tax profit of +INR389 million for its domestic operation, down from +INR1.39 billion in the year-ago quarter. It recorded a pre-tax loss of -INR1.11 billion on international operations compared to a deficit of -INR283 million last year.
"The near-team outlook remains challenging, even as we enter the traditionally stronger second half of the year," (JPL) said. "We have implemented various network initiatives in order to take advantage of the onset of the peak season from October. We expect to induct six additional airplanes into our fleet by March 2007. Capacity additions in the industry, as well as rational pricing initiatives, are critical variables that could affect overall performance."
The carrier's "comprehensive turnaround program" comprises a +14% increase in airplane utilization during the quarter, improved fuel management, that includes the installation of winglets on all new airplanes, renegotiating contracts with service providers and suppliers, a -10% reduction in administrative overhead costs and a focus on Web-based sales.
737-85R (34800, VT-JGS), delivery.
November 2006: Jet Airways (JPL) announced that it received permission to operate flights to Thailand. It will launch daily 737-800 services to Bangkok from both Kolkata and Delhi on January 23rd. It also said it will launch a daily Kolkata (CCU) - Port Blair service from November 11 aboard a 737-700 and a fourth daily (CCU) - Delhi flight beginning December 1.
(JPL) announced Mumbai - Brussels - Newark service for the coming summer. The airline is planning to operate a daily flight.
The "Federation of Indian Airlines" is the name of the new industry body created by scheduled passenger carriers in India, according to press reports. Initial members are Air Deccan (DCC), Air-India (AIN), Air Sahara (SAQ), GoAir (GOZ), Indian Airlines (IND), IndiGo (IGO), Jet Airways (JPL), Kingfisher Airlines (KFH), Paramount Airways (PAT), and SpiceJet (ROJ). The group will cooperate in areas such as human resources, maintenance and ground handling, as well as lobbying issues.
December 2006: (CAE) signed contracts for three full flight simulators: A 777-300ER and an A330/A340 for Jet Airways (JPL), and a 777-300ER for Air Canada (ACN). Both contracts include a suite of Simfinity training devices. The (ACN) contract includes an option to provide a second 777 simulator. (CAE) valued the orders at list prices, including some buyer-furnished equipment, at C$51 million/$45 million.
737-85R (34801, VT-JGT), delivery.
January 2007: Jet Airways (JPL) will expand its international network this month to Bangkok, with flights to the USA set to commence later this year. (JPL) told media that it plans to launch services to Newark in August and to San Francisco via Shanghai in November. It will operate A330s on the Bangkok route and 777-300ERs to the USA. It currently flies to London Heathrow, Kuala Lumpur, Colombo, Kathmandu and Singapore. This week it inked a code share agreement with Thai Airways (TII).
The competition for an alliance foothold in India may have started in earnest recently with reports that Air France (AFA) extended an invitation to Indian Airlines (IND) to join SkyTeam.
According to "The Hindu Business Line," (AFA) President & COO, Pierre-Henri Gourgeon met with Indian (IND) Chairman & Managing Director, Vishwapati Trivedi and tendered the invitation. Indian (IND) said its pending merger with Air-India (AIN), and its ongoing (IOSA) audit would prevent an immediate decision, "The Hindu" said.
If accurate, the report appears to put the Star (SAL) Alliance in an interesting position. Star (SAL) alliance CEO, Jaan Albrecht said at last month's meeting in Istanbul that the group expected to announce the addition of a carrier in either India or Russia this year, and rumors have circulated that the alliance was courting Air-India (AIN). "The Times" of India reported in November that (AIN) would announce an agreement with Star by the end of December, but that did not occur. (JPL), which is profitable and has committed to a considerable international expansion, also may be an alliance candidate.
(JPL) signed a purchase agreement for 10 787-8s "in order to maintain and expand the company's international operations . . . and to deploy the most modern and economically efficient airplanes," the airline said in a filing with the Bombay Stock Exchange.
(JPL) expects to take delivery between July 2011 and December 2012. No engine choice was indicated. Boeing (TBC) confirmed the order and said the airplanes are valued at more than >$1.5 billion at list prices.
The 787s "will bring a new level of world-class service as we expand our international operations with routes to Europe, Asia and the USA," (JPL) Chairman, Naresh Goyal said.
(JPL) said it has the option to substitute "other models" under the purchase agreement. It already has 10 777-300ERs and 12 A330-200s on order, and will begin taking delivery of those in April. (JPL) currently operates 47 737s, three A340-300Es, two A330-200s and eight ATR72-500s on more than 330 flights to 49 destinations. Ramp-up of its international operation will commence in April, when it starts taking delivery of new 777-300ERs and A330s.
A330-203 (807, VT-JWE), (ILF) leased.
February 2007: Although it is the market leader in India, the competition from the Low Cost Carriers (LCC)s has led to a decline in market share from 30% to 28%. (JPL) operates 320 daily flights to 44 domestic destinations.
737-85R (34802, VT-JGU), delivery.
March 2007: The India Ministry of Civil Aviation granted approval to Alliance Air (ALX), Jet Airways (JPL), Deccan Aviation (DCC), Sahara Airlines (SAQ), Kingfisher Airlines (KFH), Paramount Airways (PAT), and Indus Airways (IDU) to acquire and operate foreign manufactured airplanes with fewer than 80 seats. Airlines in India are exempt from landing fees for planes with fewer than 80 seats.
The ministry announced that the new Bangalore International Airport will open April 2.
Starting April 3rd, Ahmedabad - London Heathrow (LHR), using A330-200s. Starting August 15th, Mumbai - Brussels - Newark, using 777-300ERs.
USA authorities OK to launch flights. In second half of 2007, will start Mumbai - Brussels - New York, and Mumbai - Shanghai - San Francisco. In the meantime will add service to Canada, Hong Kong, and China, following the arrival of its first 777-300ERs.
737-85R (34803, VT-JGV), delivery.
April 2007: Jet Airways (JPL) and Air Sahara (SAQ) signed an acquisition agreement, with Jet (JPL) agreeing to pay INR14.5 billion/$338.2 million in a deal that will give it control of about half the Indian domestic market. The purchase price is 32.4% below what the carriers originally agreed to early last year, and which (JPL) ultimately deemed too high. (JPL) said it will unveil details of the merger plan very soon.
(JPL), whose agreement to acquire Air Sahara (SAQ) will give it control of about half of India's domestic market, unveiled major re-branding initiatives for both carriers, including a fleet expansion to support (JPL)'s international services that eventually will incorporate an order for 10 787s valued at $1.6 billion. Chairman, Naresh Goyal said that (JPL) is renaming "Air Sahara" as "Jetlite" and will position it "between a low-budget and a full-service carrier." The two airlines will be operated as separate entities, although they will seek synergies in their domestic networks. Pointing to international expansion, (JPL) said it will begin taking delivery this month of 10 777-300ERs and 10 A330-200s collectively valued at $2.1 billion, the orders for which first were announced at the 2005 Paris Air Show. The 787s will begin delivering in 2011. To coincide with the 777 and A330 deliveries, the airline has redesigned "everything from the ground up" and for the first time will offer first class (F) on 777 international flights. It plans to commence daily service with three-class 777-300ERs to New York (JFK) via Brussels in August, and to San Francisco via Shanghai next winter. The airplane will feature first class (F) cabins with 73-inch lie-flat seats with embedded massage systems. Two-class A330s will be used to operate daily Delhi - London Heathrow service and also will be deployed on flights from India to Singapore, Kuala Lumpur, Johannesburg and Toronto via Brussels.
(JPL)'s fleet currently consists of 62 airplanes including 49 737s. The new 777s and A330s will feature 32-inch-pitch economy (Y) seats and all cabins will have access to Panasonic eX2 In-Flight Entertainment (IFE) systems. The airplanes will be delivered with "sparkling new livery and all staff will have exquisitely designed new uniforms." VP Marketing, Gaurang Shetty said the livery features "a range of brighter, fresher colors whilst retaining many of the previous elements."
The (SAQ) purchase is expected to be finalized this month and the re-branding to "Jetlite" should be completed within 2 to 3 months, (JPL) said, adding that a revamped domestic network likely will accompany the new name.
(JPL) completed its INR14.5 billion/$344 million acquisition of (SAQ) with a INR4 billion payment for the remaining shares. (JPL) appointed a management team led by Garry Kingshott to manage (SAQ)'s transition to a wholly owned subsidiary called "JetLite."
777-35RER (35157, VT-JEA), and A330-203 (825, VT-JWF), deliveries.
May 2007: The Indian government made seat assignments compulsory for all domestic airlines. The Office of the Director General of Civil Aviation said it was imposing the regulation "in order to ensure correct loading of airplanes and keeping the center of gravity of the airplane within limits at all times during flight."
SITA said it is working with Airports Authority of India (AAI) to deploy an additional 17 (VHF) ground stations at the nation's airports, enabling Indian airlines and (AAI) to exchange real-time data with airplanes and allowing "increased safety and efficiency of operations." This will bring SITA's Aircom network in India to 23 stations.
Jet Airways (JPL) will establish a European hub at Brussels Airport (BRU). Jet (JPL) anticipates operating up to 10 daily flights through (BRU) within two years, launching service from Bangalore, Ahmedabad and Chennai to Los Angeles, Chicago O'Hare, and New York (JFK), via its new hub in addition to the daily Mumbai - (BRU) - (JFK) and Delhi - (BRU) - Toronto flights scheduled to start later this year. "Now the people of Belgium no longer have to feel they can't have their own long-haul carrier without having to subsidize it," (JPL) Chairman, Naresh Goyal joked, adding on a more serious note that the carrier has been "looking for an opportunity to combine its expansion plan to the USA and Canada, with an efficient hub in Europe, together with a strong national carrier offering a wide network . . . We have found it all at Brussels."
(JPL) and Brussels Airlines (DAT)/(EBA) signed a Memo of Understanding (MOU) covering code share flights, a frequent-flier partnership, and check-through facilities. (DAT)/(EBA) will place its code on (JPL)'s flights from (BRU) to Mumbai, Delhi and Toronto, and (JPL) will start with (DAT)/(EBA) flights to Stockholm-Bromma, Oslo Gardermoen, Birmingham, Geneva and Madrid, with expansion likely.
Starting August 15th, Mumbai - Brussels - Newark, using 777-300ERs. Starting August 22nd, Delhi - Brussels - Toronto, using A330-200s.
CEO, Wolfgang Prock-Schauer said that (JPL) chose (BRU) over London Heathrow (LHR), Paris Charles de Gaulle, Amsterdam and Frankfurt, which lacked attractive morning slots and offered cumbersome transfers, especially at (LHR). The eagerness of (BRU), privately owned since 2005, to add new long-haul destinations, and the absence of a strong competitor also played in its favor. He confirmed that the airline received a "good" marketing and support package "within the (EU) framework of what is allowed." He expects 70% to 75% of the passenger traffic between India and the USA, via the hub, to be sold at either end, with the remainder European feed. The European hub fits in with (JPL)'s international expansion plan. It is taking delivery of 10 777-300ERs and 10 A330-200s through October 2008, and one of each was at (BRU) in new livery and configuration. The carrier also has ordered 10 787s. It currently serves six international destinations, growing to 15 by October, according to Prock-Schauer.
(JPL) is not interested in buttressing its international network through alliance membership in the short term, he said. It grew systemwide capacity (ASK)s +35% in the financial year ended March 31 and will raise capacity by up to +50% in the current Fiscal Year (FY), which he said "makes us one of the fastest-growing 'mature' airlines in the world." He also revealed that he expects the restructuring of (SAQ) into "JetLite" to be finalized within "some months."
(JPL) appointed Emmanuel Menu, General Manager Continental Europe. He replaces Abraham Joseph, who is relocating to Toronto to lead the airline's expansion into Canada.
(JPL) CEO, Wolfgang Prock Schauer said that the Indian carrier has ordered three more 777-300ERs. "We hold options for ten 777-300ERs. We just transformed three [options] into firm orders," he said. No delivery details were given. (JPL) is taking delivery of the 10 777-300ERs ordered in 2005 through the end of next year. Ten A330-300s also will join the fleet during the same period.
777-35RER (35158, VT-JEB), & A330-203 (831, VT-JWG), deliveries. (JPL) committed to taking another 13 new ATR72-500s in a deal valued at $238 million. Six of the airplanes have been bought by leasing company AIR, a subsidiary of TAT Leasing, which will place them with the Indian carrier. AIR, which specializes in regional airplanes, already has five ATRs placed with (JPL).
The airline concluded purchase agreements for the other seven airplanes in order to reserve delivery positions, ATR said. Prior to delivery, (JPL) intends to conclude lease agreements for these airplanes as well. "If ATR would be able to produce more airplanes, we would take more of them," Chairman, Naresh Goyal said, adding that (JPL) would like to grow its ATR fleet to more than >30. It currently operates eight on domestic routes.
June 2007: Jet Airways (JPL) reported its fourth consecutive full-year profit, although net earnings of +INR280 million/+$6.8 million for the fiscal year ended March 31, represented a -94% plunge from the +INR4.5 billion earned in the prior year. Still, CEO, Wolfgang Prock-Schauer said that the result was a "remarkable achievement," saying the "whole industry in India is estimated to lose -$400 to -$500 million, whereas we could stay as the only profitable carrier. It's also good to note that we were able to turn our international operations profitable in the fourth quarter." Full-year revenue climbed +21.5% to INR74 billion, with the percentage from international operations at 22%. Jet (JPL) did not provide expense figures but reported that full-year EBITDAR fell -25.8% to INR10.8 billion. It flew 12.31 billion (RPK)s passenger traffic during the 12 months, a year-over-year increase of +28.51%. Capacity was up +33.1% to 17.69 billion (ASK)s, and load factor dropped -2.5 points to 68.5% LF. Passenger numbers were ahead +12.2% to 10.73 million.
Net earnings in the off-peak fiscal fourth quarter were +INR880.1 million, down -61.7% from +INR2.3 billion in the year-ago period. Pre-tax profit on domestic operations declined -11.3% year-over-year, but earnings from international services swung to a +INR31 million pre-tax profit from a -INR443 million loss. Total operating revenue rose +23.2% to INR19.78 billion.
Prock-Schauer said Jet (JPL) has been growing domestic capacity at a slower rate than the Indian market, which rose a collective +36.7% in the most recent quarter. "This has been a deliberate choice," he said. "We're very careful not to dump capacity on the market. Our financial performance is more important than just market growth. Our domestic operations have been consistently profitable, and we're very careful to keep it like this."
Meanwhile, the turnaround of "JetLite" is on track, he said. "By October, all of the airline's airplanes [17 737s and seven CRJs] should be fully operational. At present, we have 17 of the 24 airplanes flying . . . Air Sahara (SAQ) was in bad shape, and its turnaround will put pressure on our resources, both operationally and financially. But we have reduced its workforce from 4,100 to 2,100, we have renegotiated most of the leases and completed a restructuring package." He said "JetLite" is expected to lose money this fiscal year, but be profitable thereafter.
(JPL) said the outlook for the current year, particularly the first half, remains "challenging" owing to rapid fleet expansion, especially on the international network. The board recently approved a $400 million share sale to help finance the expansion.
737-85R (34804, VT-JGW), delivery.
July 2007: With domestic capacity growth "starting to slow down" and revenue from its nascent international operations more than doubling, Jet Airways (JPL) was able to post a +INR309 million/+$7.6 million profit in its first fiscal quarter ended June 30 compared to a -INR450 million deficit in the year-ago period. The Indian carrier's revenue climbed +19.8% year-over-year to INR19.83 billion, helping boost (EBITDAR) +8.3% to INR2.24 billion. Passengers dipped -4.6% to 2.7 million as (RPK)s passenger traffic rose +11.8% to 3.29 billion and capacity grew +17.8% to 4.76 billion (ASK)s. Load factor fell -3.8 points to 69.1% LF. A +6.3% year-over-year increase in domestic yield, combined with a reduction in domestic capacity growth to 38% from 48%, helped (JPL)'s domestic operation post a +INR1.31 billion pre-tax profit compared to +INR118 million in the year-ago quarter. Domestic operations accounted for 76%, or INR13.71 billion, of revenue versus 87% in the June 2006 quarter, "reflecting the growing scale and contribution of the company's international operations." It realized a INR454 million fuel savings through lower rates and decreased frequencies. International revenue rose to INR4.36 billion and pre-tax loss widened to -INR817 million from -INR713 million. (JPL) blamed engine repair cost and expenses related to unused airplanes and advertising. "Over the last few quarters, our international seat factors have been stabilizing on key routes and yields also steadily improving," it said.
The airline warned that the second fiscal quarter "is typically the weakest quarter of the year" and that a recent hike in fuel prices "will have an impact" on operating expenses. It said it will continue to raise fuel surcharges, which it admitted will put pressure on demand. Conversely, it expects international yields to increase thanks to a new first class (F) product, "which has been well accepted in the marketplace."
JetLite (SAQ), formerly Air Sahara, incurred a loss of -INR6.9 billion in the 2007 fiscal year, but is expected to break even by the conclusion of the December quarter.
2 777-35RERs (35159, VT-JEC; 35160, VT-JED), deliveries. A340-313E (646, VT-JWB), returned to South African Airways (SAA) as (ZS-SXE).
August 2007: Jet Airways (JPL) will launch five-times-weekly, Delhi - Brussels - Toronto service on September 5 aboard a two-class, 220-seat A330-200.
(JPL) exercised options for three 777-300ERs valued at more than >$790 million, bringing its total firm orders for the type to 13, Boeing (TBC) announced. (JPL) took delivery of its first 777-300ER in April.
737-75R (34805, VT-JGX), 737-76N (35218, VT-JGZ), 737-86N (35218, VT-JGZ), (GEF) leased, and 777-35RER (35164, VT-JEE), deliveries.
September 2007: The Indian government granted Jet Airways (JPL) the right to fly to a number of Gulf destinations from January 1, ending a three-year prohibition against private Indian carriers operating to the region. CEO, Wolfgang Prock-Schauer confirmed that the carrier had applied for traffic rights to operate on several Gulf routes from next year and was hopeful of a positive outcome. The Indian Ministry of Civil Aviation said (JPL) can fly to Kuwait, Oman, Qatar and Bahrain, and its request to fly to Dubai and Abu Dhabi is under consideration. (JPL) intends to serve the Gulf from New Delhi, Mumbai and Kerala. At present, only state-controlled airlines can operate on any of the routes. Prock-Schauer said the carrier is on track with its rapid expansion program in which it will take delivery of 28 new airplanes, including 10 777s and eight A330s, by the end of its current financial year ending March 31. It will launch its third route from India to North America via Brussels, daily Chennai - New York (JFK) service aboard 777s. It currently operates to Toronto and Newark.
Later this year, new Mumbai - Johannesburg service will launch and current Asian routes will be upgraded to A330s. Long-haul destinations scheduled to be added to the network next year include Chicago O'Hare, Los Angeles, San Francisco, Shanghai and Nairobi.
777-35RER (35162, VT-JEF), delivery.
October 2007: In a quarter during which it added three 777-300ERs, and launched service to North America, Jet Airways (JPL) posted income of +INR284 million/+$7.2 million, reversed from a -INR551 million deficit in the three months ended September 30, 2006. Revenue for the second fiscal quarter, climbed +26.1% to INR22.54 billion, against a +18.9% rise in expenses to INR22.12 billion. The carrier reported a +6% year-over-year increase in passenger numbers to 2.6 million and a +3.3-point lift in load factor to 66.8% LF. Traffic was up +30% to 3.62 billion (RPK)s, and capacity grew +23.6% to 5.42 billion (ASK)s. Unit revenue fell -12.6% to INR4.21/10.67 cents, while (CASK) dropped -7.8% to INR3.32, or -0.7% to INR2.03, excluding fuel. Jet (JPL) said its second fiscal quarter is seasonally the weakest in traffic and yield. The airline currently is operating in what it called its "best quarter of the year," but said "crude oil prices could spoil the party." It increased its fuel surcharge +9.1% to INR1,200 this month, and is preparing to launch service to the Persian Gulf in January. It has secured permission to fly to Qatar, Kuwait, Bahrain, and Oman. By March, it expects to be operating 81 total airplanes, up from 62 in March 2007.
(JPL)'s result for the first half of its fiscal year, was a +$14.9 million profit compared to a -$21.8 million loss in the year-ago period. "JetLite," formerly Air Sahara (SAQ), contributed +INR7.28 billion to first-half revenue. The subsidiary suffered a pre-tax loss of -INR1.92 billion during the semester.
(JPL) launched daily, Mumbai - Chandigarh service aboard a newly introduced 737-700 and increased frequency from (BOM) to Kochi and Bhopal.
(CAE) delivered 777-300ER and A330/A340 full flight simulators (FFS) to (JPL), which has received Directorate General of Civil Aviation approval to conduct training. (JPL) 's simulator training center in Mumbai (BOM) now has four (FFS)s.
(JPL) signed a purchase agreement with Boeing (TBC) for 20 737-800s plus options for an additional 10, the carrier said in a filing to the Bombay Stock Exchange. The airplanes are scheduled to be delivered between October 2012 and December 2014 as "there are no unused delivery positions for 737NGs available till October 2012," (JPL) said in a statement, widely quoted by media outlets. The 10 other 737-800s will be delivered between August 2013 and February 2015, if the options are firmed. The airplanes will be deployed on domestic operations and short-haul international services to Southeast Asia and the Middle East. The order is in addition to 10 737-800s previously ordered by the carrier, the last of which is scheduled for delivery this week.
737-75R (34806, VT-JGY), delivery.
November 2007: American Airlines (AAL) and Jet Airways (JPL) reached agreement to start code share cooperation on January 16, pending regulatory approval. Under the proposal, (AAL) would place its code on Jet (JPL) flights to certain cities in India, beyond its Delhi hub. In turn, (JPL) would place its code on certain (AAL) domestic flights out of New York (JFK). In addition, (AAL) and (JPL) will codeshare and cooperate on traffic between the USA and India, connecting in Brussels.
737-85R (35099, VT-JBD), RBS Aerospace leased, 2 777-35RERs (35163, VT-JEG; 35166, VT-JEH), and A330-202 (882, VT-JWH), deliveries.
December 2007: Jet Airways (JPL) is recruiting Second in Command (SIC)s Flight Crew (FC). Applicants can apply online.
(JPL) expanded its code share arrangement with Brussels Airlines (DAT)/(EBA) and added its code to SN-operated services from/to Birmingham and Madrid.
(ILFC) (ILF) announced the following airplane lease deals: (JPL) for one new 737-800 powered by (CFM56-7B24)s, to be delivered in December 2008 under a 10-year lease, and (JPL) subsidiary, JetLite (SAQ) for one 737-700 powered by (CFM56-7B24)s, delivered next month, under a seven-year lease. (JPL) exercised options for five A330-200s, according to a statement cited by widespread press reports. Delivery is scheduled from October 2009 through first-quarter 2011. (JPL) placed an order for 10 of the type plus 10 options at the 2005 Paris Air Show.
737-8HX (36847, VT-JBC), Aviation Capital Group (CGP) leased, 2 A330-202s (885, VT-JWJ; 888, VT-JWK), and 2 ATR72-212As (771, VT-JCJ; 775, VT-JCK), deliveries.
January 2008: 2007 statistics: 14.86 billion (RPK)s passenger traffic +26.7%; +26.7% capacity (ASK)s; no change in load factor for 69.3% LF. SEE ATTACHED COMPARISON CHART TO SELECTED OPERATORS - "JPL-2007-STATS."
Jet Airways (JPL), India's sole profitable major carrier, reported a -INR911 million/-$23.1 million loss for the fiscal third quarter ended December 31, reversed from a profit of +INR400 million in the year-ago period, ending a streak of four consecutive positive quarters. (JPL) cited "historical high fuel prices and start-up losses on international business" as factors in the result. Three-month revenue rose +27.8% year-over-year to INR25.17 billion on an +8.7% increase in passengers to 2.95 million. Fuel costs jumped +INR609 million from the year-ago period. "The increases in all other costs were in line with the increase in level of operation and in most instances, even lower than that of the same period last year," the company said. Traffic climbed +43% to 4.55 billion (RPK)s against a +43.2% rise in capacity (ASK)s to 6.59 billion, lowering load factor -0.2 point to 69.1% LF. It added 10 airplanes during the quarter.
Revenue from domestic operations (INR15.4 billion) accounted for 63% of the whole, down from 79% in the year-ago period, which (JPL) said reflects "the growing scale and contribution of the company's international operations." It suffered a pre-tax loss of -INR144 million on domestic flights during the quarter, compared to a +INR733 million pre-tax profit in the year-ago period, when it posted a +INR482 million gain from the sale of an airplane. International revenue more than doubled to INR8.86 billion, but pre-tax loss widened to -INR1.16 billion from -INR113 million, as (JPL) launched service to New York (JFK), Newark, Toronto, and Dhaka. The Jet Lite (SAQ) subsidiary, which operates 24 airplanes on regional flights, suffered a pre-tax loss of -INR860 million.
Over the first nine months of its fiscal year, (JPL) reported a loss of -INR319 million, that marks an improvement over a -INR601 million deficit in the year-ago period.
The Indian government relaxed certain industrial foreign investment rules and now will allow foreign investors to hold 100% of Maintenance Repair & Overhaul (MRO) and training organizations, dedicated to civil aviation activities. Foreign direct investment (FDI) in commercial airlines will continue to be capped at 49%, with nonresident Indians allowed to hold 100%, as long as no foreign airlines are participating. (FDI) in ground handling enterprises will be capped at 74%.
(BOC) Aviation (SIL), a wholly owned subsidiary of Bank of China (BOC), announced 10-year lease agreements for five 737NGs with India's (JPL). The airplanes will be delivered to (JPL) between March 2010 and November 2011.
777-35RER (35161, VT-JEJ), delivery.
February 2008: Jet Airways (JPL) launched daily, Kolkata - Dhaka and four-times-weekly, Delhi - Dhaka flights aboard a 737-800. It also doubled its Kolkata - Guwahati service to six-times-weekly and started daily flights from Kochi to Kuwait and Bahrain, daily Delhi - Kuwait, daily Mumbai - Bahrain, daily flights to Muscat from Kochi and Kozhikode, and to Doha from Mumbai and Kozhikode, all aboard 737-800s.
Air Canada (ACN) and (JPL) announced a code share agreement effective February 28. (ACN) will place its code on Jet (JPL)'s flights from Mumbai to London Heathrow (LHR), and from Chennai to Toronto, while (JPL) will place its code on (ACN) flights from (LHR) to Toronto, Vancouver, Calgary, Montreal, and Edmonton.
IBS Software reached agreement with (JPL) to implement its crew management system AvientCrew. IBS also launched a development center at Bengaluru.
ASIG was contracted by (JPL) to provide cabin services for four daily international flights at London Heathrow.
777-35RER (35165, VT-JEK), delivery.
March 2008: Rajiv Gandhi International Airport in Shamshabad near Hyderabad commenced commercial operations over the weekend. The facility, developed by the GMR Infrastructure-Hyderabad International Airport consortium, is India's first airport built under a private-public partnership model. Capacity is 12 million passengers annually, and it is the nation's first airport capable of handling an A380.
BOC Aviation (SIL) announced the delivery of the first of seven new 737-85Rs to Jet Airways (JPL). A second will arrive at the end of this month, with the remaining five scheduled for delivery in 2010 and 2011.
2 737-85Rs (35082, VT-JBF; 35083, VT-JBG), BOC Aviation (SIL) leased, and 737-85R (35106, VT-JBE), RBS Aerospace leased.
April 2008: The Indian government announced the signing of aviation services agreements with Mexico and Chile.
Jet Airways (JPL) is evaluating the opening of a second European hub for services to South America. The Indian carrier currently maintains a small hub at Brussels, from which it operates flights to India and North America, in cooperation with Brussels Airlines (DAT)/(EBA), which provides European feed. "(JPL) is considering a hub similar to Brussels, like in Madrid or another airport in southern Europe," a source close to the airline said. No details about a timeframe for the decision were revealed.
(JPL) announced another international expansion. It will launch daily, Mumbai - Hong Kong on April, 14 aboard 737-800s, bringing to four, the number of destinations served in the Asia/Pacific. It will begin flying to Abu Dhabi from both Mumbai and Delhi on April 23 aboard A330-200s (frequency not announced), and launch daily, Kochi - Doha (April 18), and Mumbai - Muscat (April 21). On May 5, it will begin serving San Francisco via Shanghai aboard a 777-300ER, its fourth North American destination after New York (JFK), Newark, and Toronto.
(JPL) is considering launching service to Milan Malpensa (MXP) and Paris Charles de Gaulle this year, Chairman, Naresh Goyal confirmed. He hopes to commence the routes in the next winter timetable. "Much will depend on the deliveries of our widebodies," he said in Brussels. Service to (MXP) would be operated in cooperation with Alitalia (ALI) despite its shaky financial situation. "(ALI) is still flying," Goyal said, noting the ailing flag carrier still has the best network in and out of Italy. "(ALI) abandoned its routes into India. These passengers now have to travel over other airports like Frankfurt. We can fill the gap. We believe there is a huge potential for business and leisure traffic alike." Serving the Italian market over its current hub in Brussels "is not ideal," he added. He also said (JPL) received regulatory approval to extend its code share operations with Brussels Airlines (DAT)/(EBA) to the latter's complete European network, as well as 12 destinations in Africa.
The airline currently operates a fleet of 10 777-300ERs, eight A330-200s, 54 737s, and nine ATR72-500s.
May 2008: Jet Airways (JPL) will start its daily, Mumbai - Shanghai Pudong - San Francisco on June 14, using a 777-300ER. It originally was scheduled to launch May 5. "Now we are close to being a round-the-world carrier," CEO, Wolfgang Prock-Schauer said in Vienna. Jet (JPL) currently operates 18 long-haul airplanes (10 777-300ERs and eight A330-200s). "We will get another four A330s this year, resulting in a fleet of 22 widebodies," he added.
India and the United Arab Emirates (UAE) have agreed to further liberalise their air services agreement covering passenger flights to and from Dubai, in a long-delayed move that will open the market significantly. Under the new agreement, airlines from each side will be allowed to carry up to 54,200 passengers per week in each direction by the 2009/2010 winter season, representing an increase of +23,000 on the previous deal. The new agreement had been under discussion for some time and should help to ease complaints of significant under-capacity in the market. Capacity has not kept up with demand due partly to fast growth in Dubai's population of Indian migrant workers. The new bilateral comes as India has been allowing more international services by privately owned carriers and as Dubai is setting up a new low-cost carrier that will almost certainly seek to operate to India. India's (JPL), which began serving Abu Dhabi in late April, will also likely benefit. It does not yet have Dubai rights, but has been applying for them and now expects it will be able to launch services to Dubai from several Indian cities.
Air India's low-cost unit Air India Express (AXB) has also unveiled plans to launch flights to Dubai from Ahmedabad, Goa, Hyderabad, and Pune. It already connects Dubai with 12 other Indian cities and these services are considered among its most lucrative. Air India Express (AXB) also serves Abu Dhabi from five Indian cities and Sharjah from three. Demand for services from all of the (UAE)'s major cities has been growing rapidly. Abu Dhabi-based, Etihad (EHD) now serves six cities in India, and is keen to serve several more, while Sharjah-based Air Arabia (ABZ) is also keen to expand its Indian network, which already consists of 11 cities. (ABZ) says its passenger numbers on its India routes grew +43% in the first quarter with an average load factor of 94% LF.
(JPL) took delivery of its seventh A330-200 configured in two classes with 220 seats. The airplane is part of an order for 15 placed between 2005 and 2007.
A330-202 (923, VT-JWM), and ATR72-212A (791, VT-JCL), deliveries
June 2008: A significant swing to the red in its fiscal fourth quarter ended March 31 helped drag India's Jet Airways (JPL) to a full-year loss of -INR2.53 billion/-$58.9 million, a reversal from the +INR280 million profit it reported in the year ended March 31, 2007, and its JetLite (SAQ) subsidiary suffered even heavier losses. "Over the past few months, the aviation industry worldwide has been facing the effects of continuing increases in crude oil prices," (JPL) said. "The situation in India is further exacerbated by continuing overcapacity as well as the fact that the operating costs in the Indian environment have always been higher than other comparable countries." (JPL)'s full-year revenue rose +28.1% to INR94.82 billion as passenger numbers climbed +6.5% to 11.4 million. It flew 16.91 billion traffic (RPK)s, up +37.4% year-over-year, against a +38.1% increase in capacity to 24.45 billion (ASK)s, lowering load factor a slight -0.3 point to 69.2% LF.
JetLite (SAQ), formerly Air Sahara (SAQ), reported a pre-tax loss of -INR4.4 billion, narrowed from a -INR6.89 billion deficit in the prior fiscal year.
(JPL) is actively interviewing 777 Pilot In Command (PIC)s (FC) with international experience. Applicants can apply online.
(JPL) currently operates a fleet of 10 777-300ERs, 54 737s, nine A330-200s, and 11 ATR72-500s to 62 destinations. JetLite (SAQ) flies 17 737s and seven CRJ-200s to 31 mostly domestic airports.
Looking ahead, (JPL) said the next few quarters will be "impacted negatively" by high fuel prices, adding that the Indian industry as a whole lost -$1 billion in the recently completed fiscal year and possibly will lose -$2 billion in the current year. Capacity growth is slowing - - the March quarter growth was +18.1% year-over-year compared to +36.7% in the year-ago quarter. (JPL) said its fourth-quarter capacity "was in line" with year-ago figures "due to the network rationalization initiatives." It said demand is "tapering off" due to fuel surcharges.
Fiscal fourth-quarter loss of -INR2.21 billion compared to a +INR880 million profit in the three months ended March 31, 2007. Revenue climbed +37.1% to INR27.27 billion and passenger numbers increased +17% to 3.2 million.
Etihad Airways (EHD) and (JPL) agreed to enter into a codeshare agreement, that will take effect July 1, and cover both carriers' services to/from Abu Dhabi, New Delhi, and Mumbai.
Indian airlines have been late in making payments for jet fuel, reported India's "Economic Times," citing a top executive with Indian Oil Corp (IOC). Kingfisher Airlines (KFH) and (JPL) are among several carriers "delaying payments, in spite of seeking a very comfortable line of credit and huge discounts," the (IOC) executive told the paper. (KFH) reportedly built up "arrears" on a line of credit earlier this year, and was forced to switch to a "cash and carry" model of payment in which it pays immediately for fuel it needs. It paid down its debt and has transferred to other fuel providers except at airports where only (IOC) operates, according to the report. (JPL) still reportedly owes (IOC) for fuel it has purchased via a line of credit.
July 2008: Jet Airways (JPL) will launch flights from Pune to Hyderabad (daily), Nagpur (six-times-weekly), and Ahmedabad (daily) on July 15 aboard ATR72-500s. (JPL) will start Dubai service in August, with nonstops from Mumbai and Delhi.
(JPL) said it has gained approval from India's Directorate General of Civil Aviation to serve as the Type Rating Training Organization for its Type Rating Training School, which will enable it to "induct pilots (FC) in smaller batches at regular intervals in order to optimize the usage of simulator as well as ground school training facilities . . . [leading to] faster, more-efficient induction of pilots (FC) into its workforce to fly its growing fleet."
August 2008: Jet Airways (JPL) 2nd quarter = +$34 million (+$7 million).
After a busy round of consolidation, India’s airline industry seems to be stabilizing around three airline groupings with international ambitions: (JPL), Kingfisher (KFH), and Air-India (AIN), and three Low Cost Carriers (LCC)s: Indigo (IGO), SpiceJet (ROJ), and GoAir (GOZ). Regional carrier Paramount (PAT) also seems to have big ambitions.
(JPL) will launch daily flights to Dubai from Mumbai and Delhi on August 23 aboard A330-200s. Dubai is (JPL)'s 20th international destination and second in the (UAE). (JPL) will commence daily, Bangalore - Brussels on October 31 aboard an A330-200. This weekend it launched daily A330-200 flights to Dubai from Mumbai and Delhi.
Former (JPL) CEO, Nikos Kardassis, who ran the carrier from 1993 to 1999, will return to (JPL) as head of its North American operation as Senior VP, The Americas & Senior Advisor to the Chairman for Corporate Strategy & Finance. (JPL) has launched four daily, North American services in the past year.
GMR Hyderabad International Airport, developer and operator of the new Rajiv Gandhi International, said it received clearance from the Ministry of Aviation to levy a INR375/$8.66 user development fee on outbound domestic passengers.
September 2008: Jet Airways (JPL) continues to build its Arabian Gulf network with the launch of 737-800s service to Muscat, in Oman, from Thiruvananthapuram in the southern Indian state of Kerala.
(JPL)'s second quarter (Q2) financial results = net profit of +$33 million and an operating loss of -$162 million. The combined result with JetLite (SAQ) = net profit of +$2 million and an operating loss of -$209 million.
(JPL) is actively interviewing 737 and ATR Pilot in Command (PIC)s (FC) with international experience.
(IATA) (ITA) Director General & CEO, Giovanni Bisignani said that India's airlines could collectively lose as much as -$1.5 billion in 2008, and called on the nation to take "urgent action . . . to help Indian carriers weather the perfect storm of high costs and falling demand." Speaking in New Delhi to the Confederation of Indian Industry, Bisignani noted that commercial air traffic growth in India has slowed dramatically this year, rising +7.5% in the first six months of 2008 compared to growth of +33% for full-year 2007. He said the country needs to lower the cost for airlines to operate, improve its aviation infrastructure, and adopt global standards. "India is among the most expensive places on the planet to buy aviation turbine fuel," he said. "In August, it was +58% more expensive to buy fuel in Mumbai for domestic flights than in Singapore for international [flights]. Excise duties, throughput fees charged by airport operators, and state taxes of up to 30% for domestic flights, result in a cost structure that cannot support a competitive industry." He added that taxes on overflight charges, premium class tickets and airport charges are "embarrassments" that must be eliminated. Bisignani further called for "infrastructure investments," particularly in Mumbai, which he said "needs an airport that can adequately serve the financial capital of the world's second most populous nation. That means thinking much, much bigger."
Finally, he said that "global standards . . . should be at the heart of India's aviation policy," explaining that "nonstandard data transmission requirements [imposed by the Indian government] for Advance Passenger Information is an added cost burden . . . [and] a serious flaw." He added, "Aviation is a fast-changing industry that is fueling much of the Indian economic success story. But . . . India's decision-making is too slow. [The government needs to make] quick decisions based on global standards and build a solid platform for future expansion."
October 2008: Jet Airways (JPL) and Kingfisher Airlines (KFH), India's two largest private carriers, announced the formation of an "alliance," that will include codesharing on both domestic and international flights and a wide-ranging pooling of resources. Each airline is losing money as they contend with rising costs and overcapacity in the Indian market and see cooperation as a way to lower costs and increase efficiency. "Such alliances are taking place all over the globe," (JPL) Chairman, Naresh Goyal told reporters at a news conference in Mumbai. "This is the first such alliance in India. It is not a cartel, but essentially meant to save costs as airlines are losing money." Added (KFH) Chairman, Vijay Mallya, "This alliance will result in major cost saving, improve efficiencies through network synergies and cross-selling. If the airlines save money, they will pass it on to consumers." The carriers insisted they are not planning to merge. The two, which collectively control nearly 60% of the domestic Indian market, have agreed to cross-sell tickets, share crews on similar airplane types, and combine ground handling and fuel management operations. Passengers will be able to earn and use frequent-flier miles across both carriers.
India's airlines are estimated to have lost more than >$1 billion in the 12 months ended March 31. (JPL) CEO, Wolfgang Prock-Schauer said that (JPL) expects to follow a -$100 million loss in its last fiscal year with another loss for the year ending March 31, 2009.
Kingfisher (KFH) Vice Chairman, G R Gopinath told the "Indo-Asian News Service" that the alliance was "inevitable, as it is a matter of survival in these times when airlines the world over are going through their worst phase, due to a combination of factors, triggered by soaring fuel prices and followed by global economic slowdown and falling occupancy . . . In the prevailing situation, such an alliance makes sense and is in line with what has been happening with other international airlines. Indian carriers can no longer remain immune to the impact of global crisis in the aviation industry."
The Federation of Indian Airlines (FIA), of which both (JPL) and (KFH) are members, in recent days asked for a $1 billion bailout from the government to help carriers manage the financial crisis. The (FIA) predicts collective losses of more than >$2 billion for India's airlines this year.
(KFH) and (JPL) are emphasizing that their newly formed "alliance" is not a merger or a precursor to one, but was necessary to "enable a stabilization of the Indian aviation industry in the larger public interest." Cooperation between the former archrivals likely will be extensive. "While maintaining their separate legal entities and brand entities, both (JPL) and (KFH) will examine co-branding opportunities and have formed a core committee of senior management personnel from both companies, who will drive the various identified initiatives forward," the airlines said in a joint statement. They insisted that "there will not be any mutual equity investments." Statements from (JPL) Chairman, Naresh Goyal and (KFH) Chairman, Vijay Mallya elicited a sense of deja vu for observers of India's troubled airline industry. The Chairmen said they hope to reduce losses by increasing synergies, instead of aggressively competing as they have for the past four years. They issued similar statements last year after acquiring smaller carriers. (JPL) bought Air Sahara (SAQ), and (KFH) took over Deccan (DCC), but both acquisitions have failed to deliver the synergies and reduced costs promised and each airline's share price has taken a beating over the past year. Whether the new alliance produces different results, will become clearer in coming months.
Mallya argued this week that the "fundamentals for air transport in India remain sound," but noted that growth has slowed considerably in the last six months owing to "high fuel prices, back-breaking taxation, excessive airport charges and overcapacity."
The two carriers operate a combined 189 airplanes on 927 domestic and 82 international flights daily, and plan to interline to cut down on overlapping routes, a move they hope will help address what Goyal characterized as "irrational pricing" in the Indian market.
The alliance, subject to Directorate General of Civil Aviation approval, may allow each airline to deploy airplanes more rationally. (KFH)'s initial foray into international operations on the Bangalore - London Heathrow route has suffered so far from very poor loads. It is scheduled to take delivery of two A340-500s later this year and deploying them profitably in the current economic environment could be problematic. The tie-up with (JPL), which already operates to Europe, Southeast Asia, the Middle East, and the USA, may help in that regard.
(JPL) re-launched daily, Pune - Bengaluru aboard a 737NG. (PL) will discontinue its Mumbai - Shanghai - San Francisco (SFO) service on January 13, owing to "the downturn in major economies worldwide." It said it will serve (SFO) from London Heathrow through codeshare with United Airlines (UAL) and continue to optimize its long-haul network "focusing more on its established international gateways and routes."
The European Union (EU) and India signed a horizontal aviation agreement, that brings the 26 bilateral agreements India has with individual (EU) members into conformity with Community law. With nearly 5.7 million passenger traveling between the (EU) and India last year, India ranked 11th in passenger traffic between the (EU) and non-(EU) countries. Over the past three years, (EU)-India passenger traffic has increased +75%.
(JPL) is "very pleased" with the performance of its European hub in Brussels (BRU), which it launched in August 2007 with a daily Mumbai - (BRU) - Newark (EWR) 777 service, claiming that its first year "proves that the concept of hubbing out of your home market works." But CEO, Wolfgang Prock-Schauer confirmed that the venture is not yet profitable. "We remain optimistic to achieve our target to break even after 18 months of operations, despite the current slowdown," he said. (JPL) currently connects daily flights from Mumbai, Delhi, and Chennai to New York (JFK), Toronto, and (EWR), equating to 1,504 seats. It flew some 704,000 passengers through (BRU) through the end of September, achieving an average load factor of around 75% LF. "It counters all this euphoria of nonstop, very-long-haul flights. Brussels Airport has become, uniquely, an Asian carrier's hub," Prock-Schauer claimed.
Despite the losses, during its 13 months at (BRU), (JPL) has become "the market leader in Belgium on all its destinations, [the] largest long-haul carrier at (BRU), and the largest cargo operator in belly load at (BRU)," he added. The carrier said it holds a 40% market share on (BRU) - (JFK), 49% on (BRU) - (EWR), and 70% on (BRU)-Toronto.
(JPL) remains committed to expanding further at (BRU), possibly to seven destinations in North America and seven in India, Prock-Schauer said. For the next two years, however, "we will focus on organic growth, and on the further development of our partnership with Brussels Airlines (DAT)/(EBA)." He conceded that the launch date of Bangalore - (BRU) service, scheduled for October 31 aboard an A330-200, is "under review" owing to adverse economic conditions.
With the new winter schedule, (JPL) will reorganize its arrival and departure times in a 2-hour "compressed" wave at (BRU), compared to the previous 4-hour window. The new schedule also includes increased and more efficient connections to Brussels Airlines (DAT)/(EBA)'s European and African network.
(DAT)/(EBA)'s recent financial tie-up with Lufthansa (DLH) and its possible entry into the Star Alliance (SAL) will not affect its cooperation with (JPL), (DAT)/(EBA) Managing Director, Bernard Gustin said. "We included our partnership with (JPL) in our discussions with Lufthansa (DLH) from the beginning and made it very clear [to (DLH)] that the cooperation [with (JPL)] is very important to us. They understand this," Gustin said, noting that the successful (JPL) partnership is a "positive" the carriers value. (DLH) acquired an initial 45% of (DAT)/(EBA) for €65 million/$90.4 million, and in 2011 will have an option to purchase the remaining 55% at a price related to its performance. "(DAT)/(EBA) fully supports the growth plans of (JPL). We benefit from their hub here," Gustin said. (DAT)/(EBA)'s passenger total, thanks to the Jet (JPL) hub has increased from 585 per month in August 2007 to 6,217 last July. "About 200 (JPL) passengers per day take a connecting flight with (DAT)/(EBA) and I dare to forecast a doubling of this," Gustin said. Improved connection times and frequencies, as well as joint sales efforts should increase volume further, he added. This winter schedule, 20 (DAT)/(EBA) destinations will connect within a 2-hour timeframe with Jet (JPL)'s schedule compared to three in winter 2007.
(JPL), India's largest airline by market share, announced that it will lay off -1,900 employees across all levels. The news, which sent ripples through the domestic airline industry, came two days after (JPL) sealed a surprising partnership with former rival (KFH).
The first set of employees asked to leave - - nearly 800 flight attendants (CA), hired as part of (JPL)'s expansion program - - protested outside its Mumbai headquarters and have sought government intervention. But (JPL) Chairman, Naresh Goyal said the economic climate that precipitated the (KFH) alliance also prompted the job cuts, although the two decisions were unrelated. "The economic viability of the industry has been severely impacted by record fuel prices and most recently due to the financial crisis globally and the downturn in traffic," (JPL) said.
The airline aims to cut flights by close to -15% during its winter schedule, and the new layoffs follow its decision last month to cut -800 employees from the rolls of low-cost subsidiary JetLite (SAQ).
The company employs about 12,000, and trade unions and opposition political leaders condemned this announcement and asked for the employees to be taken back. The conservative (BJP) party called for a reversal, while the Centre of Indian Trade Unions said the government should ground (JPL) until the employees return. Speaking at the India Aviation 2008 show in Hyderabad, Civil Aviation Minister, Praful Patel confirmed his ministry could not interfere in airline hiring policy.
Later, however, in a dramatic reversal, (JPL) announced that the 1,900 employees targeted for layoffs would be reinstated, with Chairman, Naresh Goyal claiming his decision did not come from political pressure or union threats, but rather because he "cannot see the tears in their eyes." Speaking at a quickly arranged televised news conference in Mumbai, Goyal said it was a "personal decision" to reinstate the 800 flight attendants (CA) let go and the 1,100 other unidentified employees scheduled for dismissal. Local political leaders involved themselves quickly after the initial announcement, but Goyal promised that he has "not talked to anybody. It does not matter what anybody says," and that "my management took this decision on the basis of certain economic conditions. As the head of the family, my conscience does not allow me to look at just the economics."
The regional Maharashtra Navnirman Sena political party reportedly threatened to disrupt Jet (JPL) 's Mumbai operations if the employees were not brought back. According to "The Australian," the firings would have constituted the largest single worker retrenchment in Indian corporate history.
The conditions that prompted the layoffs still exist, however, and reports suggested that (JPL) would move to cut wages. (JPL) reported a September load factor of 64% LF and its Low Cost Carrier (LCC) subsidiary, JetLite (SAQ) posted 58.8% LF. A (JPL) executive told "Mint;" that senior management may take a full-year -25% pay cut/deferral, while Shiv Sena, another Mumbai-based political party, told the "Business Standard (BS)" that Jet (JPL) sent a letter promising it would not impose pay cuts on rank-and-file employees.
Meanwhile, the new partnership between (JPL) and (KFH) caught the eye of India's Monopolies and Restrictive Trade Practices Commission. A preliminary probe of the tie-up was launched, the (BS) reported. Civil Aviation Minister, Praful Patel told "The Times of India" that (JPL) and (KFH) "will not be allowed to become or act like a cartel. If they even try to do so, we will act decisively and come down with a heavy hand."
Patel also defended airlines from claims they have defaulted on fuel payments. According to "Mint," (JPL), (KFH) and Air-India (AIN) are at least INR18 billion ($359 million) in arrears and have exceeded credit limits, while "The Economic Times" put the figure at half that. Either way, Patel said the carriers had a 60-day grace period to make payments, "so they cannot be branded as defaulters," according to "The Indian Express."
November 2008: Jet Airways (JPL) started four-times-weekly, Bangalore - Brussels. The service will operate daily, December 15 - January 15.
The Indian parliament passed legislation establishing the Airport Economic Regulatory Authority (AERA). The (AERA) is designed to encourage investment, regulate charges and foster competition among Indian airports. But (IATA) (ITA) said more is needed, with Director General & CEO, Giovanni Bisignani claiming that "many" of (ICAO)'s principles of "transparency, nondiscrimination and user-consultation . . . are being ignored back in Delhi." He said India's air navigation service provider over-collects by +20% and that a 33% price differential for international landings "has no cost justification." He called on the Indian government to address current taxes on premium tickets, air navigation charges, landing and parking fees, and overflight charges, claiming they are "crippling the industry." The government did offer airlines some relief on fuel debt last month.
December 2008: Jet Airways (JPL) said that all employees earning a gross salary of more than >INR75,000/$1,473.15 per month, will take a "graduated wage cut" over the next 12 months as part of an effort "to cover the challenges faced . . . due to the current economic slowdown worldwide." Pilot (FC) givebacks will comprise a wage cut and allowance rationalization. "Top management" has taken a voluntary -25% pay cut, effective this month. "Excess foreign pilots (FC)" are being laid off and "expatriate executives" in India and overseas also are being let go, as part of the cost reduction effort, Jet (JPL) said.
A330-202 (956, VT-JWQ), and 2 ATR72-500s (841, VT-JCP; 843, VT-JCQ), deliveries. 3 777-35RER's (35160, VT-JED; 35162, VT-JEF; 35164, VT-JEE), wet-leased to Turkish Airlines (THY).
January 2009: Emirates (EAD) and (JPL) announced a partnership under which they will link their loyalty programs and (EAD) will code share on (JPL)'s daily flights to Dubai from Mumbai and New Delhi.
The Indian government appears to be softening its stance on foreign direct investment in the country's airlines as they contend with large losses and overcapacity. Civil Aviation Minister, Prafel Patel told reporters this week that "there is a more reasonable case now than there was 3 to 4 years ago" to allow foreign carriers to acquire up to 25% of an Indian carrier. Kingfisher Airlines (KFH) has been a strong proponent of investment liberalization. "There is no clarity on the issue. This is one of the proposals which can be considered," Patel was quoted as saying. "Every airline has a problem and we have to look for extraordinary solutions. It is not formalized yet. It is only a thought process. We are not saying we will give it. We just feel the need," he said.
The Indian commercial aviation industry experienced a rough 2008. According to "The Hindu," passenger numbers fell 5% to 40.8 million following growth rates of 32.5% in 2007 and 46.5% in 2006. (JPL) led with 8.8 million, followed by Air-India (AIN) with 6.6 million, (KFH) with 6.3 million, Deccan (DCC) with 5 million, IndiGo (IGO) with 4.7 million, SpiceJet (ROJ) with 4.1 million and Paramount Airways (PAT) with 630,000.
February 2009: Gulf Air (GUL) signed an agreement to lease four 312-seat 777-300ERs from Jet Airways (JPL). Three airplanes will arrive next month and the fourth in May and will replace A340s. (GUL) currently wet-leases two A300s from (JPL).
737-85R (35289, VT-JBH), (ILF) leased.
March 2009: Jet Airways (JPL) already flies to Kuwait from Kochi but will start 737-800 flights from Mumbai later this month. (JPL)’s other Gulf destinations are Dubai (UAE), Abu Dhabi (UAE), Doha (Qatar), Manama (Bahrain), and Muscat (Oman).
Recent route cuts: Mumbai - Shanghai/San Francisco, Bangalore - Brussels, Amritsar - London.
(JPL) plans to operate four-times-weekly, Cairns - Osaka Kansai (KIX) service beginning in December aboard an A330. (JPL) said launch is subject to completing negotiations with (KIX) and that it has "alternative international capacity options" from Cairns.
The Indian economy, not terribly dependent on trade, grew +5% last quarter.
Indian airlines carried 3.3 million passengers on scheduled flights last month, about level with January. Kingfisher Airlines (KFH) led with 904,000 (27.1% market share, 74.3% LF load factor), followed by Jet Airways (JPL) at 597,000 (17.9%, 68.7% LF) and Air India (AIN) at 574,000 (17.2%, 66.3% LF).
April 2009: Jet Airways (JPL) launched daily, Mumbai - Kuwait City service aboard a 737-800. (JPL) will launch daily, Chennai - Dubai service and a second daily, Mumbai - Dubai flight on April 23 aboard 737-800s. Both (JPL) and JetLite (SAQ) have started operating daily, New Delhi - Srinagar service.
May 2009: Jet Airways (JPL) finished its fiscal year ended March 31 -INR4.02 billion/-$84.7 million in the red compared to a -INR2.53 million loss in 2007 to 2008 and said a return to breakeven and profitability "requires exceptional efforts" considering the "sluggish demand" forecast for the coming year. (JPL) enjoyed a +23.4% increase in revenue to INR118 billion, but a year marked by plunging demand, overcapacity and the Mumbai terrorist attacks proved too great a burden on the bottom line.
(JPL) flew 21.44 billion (RPK)s traffic in 2008 to 2009, up +26.8% year-over-year, against a +29.5% increase in capacity to 31.65 billion (ASK)s. Load factor dropped -1.5 points to 67.7% LF and passenger numbers fell -3.1% to 11.1 million. Prospects brightened toward the end of the year, however, and (JPL) reported a +INR530 million profit in its fiscal fourth quarter, a reversal from the -INR2.21 billion loss incurred in the three months ended March 31, 2008. It achieved that result despite a -8.2% year-over-year decline in revenue to INR25.66 billion and a -20% fall in passengers.
It credited capacity rationalization, its effort to wet-lease wide body airplanes and a "comprehensive" restructuring program including adjustments to its network, personnel costs, leases, debt, airplane delivery schedules and its Jet Lite (SAQ) and Jet Airways Konnect product offerings. (JPL) said it has moved to "stabilize" its long-haul network by replacing 777s with A330s on its North American routes and using more 737s on flights to the Gulf and Southeast Asia. Nine long-haul airplanes have been leased out.
(JPL) currently operates 86 airplanes to 63 destinations. Its Jet Lite (SAQ) subsidiary flies 23 airplanes, while the Jet Airways Konnect economy (Y) product is available on two 737s and six ATRs.
In June, (JPL) will fly to Saudi Arabia for the first time, connecting both the capital Riyadh and the port city Jeddah with Mumbai using 737-800s. The two Saudi cities represent (JPL)'s 7th and 8th destinations in the Gulf.
(JPL) announced the launch of a new economy (Y) service called "Jet Airways Konnect (JAK)" that will be available on select domestic routes. "Designed to meet the needs of the low-fare segment," (JAK) will feature reduced fares and buy-on-board meals and will be available on two 737s and six ATR72-500s to start.
2 A330-243s (807, VT-JWE) leased to Oman Air (OMR).
June 2009: Now India's number two airline behind Kingfisher (KFH) in terms of passenger market share, Jet Airways (JPL) posted a net loss of -$16 million for the first quarter, or -$59 million excluding one-time items. This includes its subsidiary JetLite (SAQ), which suffered a -$27 million net loss. In this period (JPL) cut domestic capacity by -22% causing overall revenue to fall -8%. (JPL) restructured its international network with smaller longhaul airplanes and more shorthaul flights such as those to the Middle East.
(JPL) expects to break even in the fiscal year ending March 31, 2010, Chairman, Naresh Goyal told "Bloomberg News." (JPL) lost -INR4.02 billion/-$83.9 million in the recently completed fiscal year. Goyal said cost cuts would drive the improved result. He also said (JPL) will cut capacity by an additional -10% beyond the -30% reduction already imposed.
(JPL) blasted a move by authorities in Delhi and Mumbai to hike airport costs as a "disaster," according to "The Economic Times." "Airport charges are crazy. This is a disaster. This is absolutely not fair to the industry," (JPL) Chairman, Naresh Goyal told media. He said (JPL) would cut capacity on its USA service by -30% to reduce costs. The paper reported that each city's main airport increased charges by +10%, while Mumbai raised development fees +278% and Delhi +137%.
(JPL) said it will expand its (JPL) "Konnect" all-economy (Y) service owing to "strong customer demand." It increased the domestic program by 30 daily flights and will operate more than >100 immediately. The "Konnect" fleet comprises seven 737-800s and 10 ATR72-500s.
July 2009: (JPL) said domestic demand, which dropped approximately -10% during the fiscal year ended March 31, "is showing signs of slowdown in this declining trend." June passenger numbers rose +6% year-over-year. In May it launched its no-frills Jet Airways Konnect service, which is operating at loads of "mid-to-high 70s" across 19 airplanes. It said it intends to expand the proportion of domestic flying offered under the Konnect brand to two-thirds from one-third by October.
Domestic revenue comprised 43.1% of (JPL)'s total, down from 52% in the year-ago quarter. Its pre-tax result on domestic operations reversed to a -INR1.48 billion loss from a +INR5.02 billion profit last year, when it benefited from a one-time gain of +INR8.53 billion. Pre-tax loss on international flying was INR772 million, narrowed from +INR2.83 billion. It said the long-haul improvement resulted from "capacity reduction, elimination of loss-making routes, leasing out of airplanes and focusing on profit-making routes."
The company's JetLite (SAQ) subsidiary reported a net profit of +INR22 million for the quarter compared to a -INR1.35 billion loss in the three months ended June 30, 2008. The result includes a INR201 million foreign exchange gain. The mainline, including Konnect, currently operates 83 airplanes, while (SAQ) flies 23.
(JPL) said domestic yields remain "challenging" and are "expected to stay this way for the next few months" but that "certain improvements" are expected in the fiscal third quarter starting October 1. Internationally, it will focus "on maximizing revenues through higher seat factor levels."
(JPL) plans to launch daily, Hyderabad - Dubai flights August 16 using 737-800s. It recently launched daily, Mumbai - Jeddah service aboard a 737-800.
737-85R (36551, VT-JBJ), Aviation Capital Group (CGP) leased.
August 2009: Jet Airways (JPL) launched daily, Mumbai - Jeddah flights using a 737-800. (JPL) now operates to seven cities in the Gulf region including Kuwait City, Bahrain, Muscat, Doha, Dubai, and Abu Dhabi. On August 16, it will start daily service to Dubai from Hyderabad and add a second daily flight to its Mumbai - Bangkok route.
(JPL) launched four-times-weekly, Mumbai - Riyadh service aboard a 737-800 and will begin twice-weekly, Bangkok - Gaya - Varanasi flights starting October 6. (JPL) will launch daily, New Delhi - Hong Kong service on September 30 aboard an A330-200.
September 2009: Jet Airways (JPL) began daily, Hong Kong - New Delhi service September 30 using an A330-200, complementing existing service from Mumbai to Hong Kong, It will launch twice-weekly, Bangkok - Gaya - Varanasi service October 6.
(JPL) said that about 40% of its pilot (FC) workforce "reported sick," "disrupting the flight schedule and causing inconvenience." It said in a statement that 186 flights had been cancelled. The "National Aviators Guild," the union representing the carrier's 760 pilots (FC), said it wants two pilots (FC) who were fired, to be reinstated. (JPL) and the union have been engaged in a "conciliation process" over the firings and other issues, and (JPL) said that any work action during such a process is "an illegal act." The Indian government issued a statement expressing its "concern" over the "wildcat strike." A union spokesperson told "Reuters" that the sickout would continue as long as the two pilots (FC) remain unemployed. "All we want is that they give us in writing that the two sacked pilots (FC) will be reinstated," he said. It is unclear why the pilots (FC) were fired.
(JPL) and the National Aviators Guild representing (JPL)'s 760 pilots (FC) will meet in New Delhi at the behest of top government labor officials in an effort to resolve the dispute that has led to nearly half (JPL)'s pilots (FC) calling in sick for three days, severely disrupting its flight schedule. (JPL) Chairman, Naresh Goyal, who has accused the pilots (FC) of holding the airline "hostage" with an "illegal" work action, met with Indian Labor Minister, Mallikarjun Kharge. A meeting will be held as soon as possible between the carrier and (NAG), according to media reports. At issue is (JPL)'s recent firing of two pilots (FC) whom (NAG) is demanding be reinstated. The firing's cause is unclear, but both reportedly were key players in forming (NAG) over the summer, enabling the pilots (FC) to unionize.
Later, (JPL) pilots (FC) ended a five-day sickout after (JPL) agreed to reinstate pilots (FC) it had fired. About half of (JPL)'s 760 pilots (FC) called in sick September 8 - 12, forcing the cancellation of more than >1,000 flights. (JPL) said in a statement that an agreement reached with the National Aviators Guild (NAG) union after two days of talks was "amicable."
Reports from India indicated that the (NAG) was demanding the reinstatement of two pilots (fc); under the agreement, four were given their jobs back. (JPL) said the accord allows "the airline [to] operate [a] full schedule of services on all sectors with all crew (FC) reporting for their normal rostered duties."
(JPL) said it received shareholder approval to raise up to $400 million through private share placements, global depository receipts or foreign currency convertible bonds, according to a filing with the Bombay Stock Exchange cited by numerous press reports.
Chairman, Naresh Goyal said (JPL) last year deferred plans to raise funds via a rights issue owing to volatile market conditions. It had planned to launch the issue in October 2008 but deferred it until conditions improved. Goyal also said he would dilute 5% to 10% of his personal stake in (JPL). He currently holds 80%. He told the "Financial Times" that the airline is open to various sources of funding including banks or private equity placement.
737-85R (35651, VT-JBL), JetLite (SAQ) leased.
October 2009: A five-day pilot (FC) strike combined with "a lean season and lower yields" dragged Jet Airways (JPL) to a -INR4.07 billion/-$86.6 million loss in its fiscal second quarter ended September 30, deepened -5.8% from the -INR3.85 billion deficit reported in the year-ago period.
Revenue plunged -26.9% year-over-year to INR23.81 billion as the pilot (FC) work stoppage in mid-September cost (JPL) some INR800 million. (JPL) said that around 1,300 domestic flights and 200 international flights were cancelled. However, (JPL)'s second-quarter (EBITDAR) reversed to a +INR2.46 billion profit from a -INR1.9 billion loss in the year-ago period and it said the improvement "suggests that operationally the performance has stabilized and the impact of initiatives like rationalization of capacity and our cost reduction program have started to show results."
(JPL) and its JetLite (SAQ) subsidiary flew 5.32 billion system (RPK)s traffic during the quarter, down -4.6%, against a -17.9% cut in capacity to 6.91 billion (ASK)s. Load factor soared +10.7 points to 77% LF on a -1.2% dip in passenger numbers to 2.8 million. "The domestic air traffic market has started to show some signs of recovery," (JPL) said, pointing to a +24% year-over-year increase in traffic across the Indian industry. Capacity rose +5% year-over-year, but a decline in average yield and a +17.4% increase in fuel prices from the fiscal first quarter to the second mitigated improvement to the bottom line, it said.
(JPL) currently operates 85 airplanes, 27 of which (17 737s and 10 ATRs), fly under (JPL)'s no-frills "Jet Airways Konnect" (JetKonnect) brand (which has been averaging 76% LF). JetLite (SAQ) has 23 planes and suffered a -INR1.26 billion second-quarter loss, improved from a -INR2.73 billion deficit in the quarter ended September 30, 2008.
The outlook is somewhat brighter as the Indian market enters its "peak season," (JPL) said. "Over the last few weeks, airlines have started raising fares and these increases have not shown any negative impact on traffic. We do expect yield improvements with the peak season as well as premium demand revival in the next few quarters, whilst our focus will continue to be on maximizing revenues through higher seat factor levels."
(JPL) will operate its A330-200s on Delhi and Mumbai to Hong Kong. (JPL) started Bangkok to Gaya and Varanasi, two Indian Buddhist holy sites.
Bmi (BMA) appointed (JPL) CEO, Wolfgang Prock-Schauer as its new CEO, effective December 1, succeeding Nigel Turner. The appointment is part of broader management shakeup, following Lufthansa (DLH)'s acquiring control of the loss-making UK airline. (JPL), meanwhile, selected Senior VP the Americas, Nikos Kardassis as its new (CEO), effective October 15.
Prock-Schauer, an Austrian national who began his career at Austrian Airlines (AUL), will join (BMA) November 1 to serve as deputy (CEO) for a month before taking the helm.
"Dow Jones" reports Jet Airways (JPL) is discussing Maintenance Repair & Overhaul (MRO) and a ground handling alliance with SpiceJet (ROJ).
(JPL) is not currently hiring Flight Crew (FC). (JPL) released most of its USA ex-patriot pilots (FC) from their contracts effective August 1.
737-85R (36553, VT-JBK), Aviation Capital Group (CGP) leased and 737-86N (36817, VT-JBM), (GEF) leased.
November 2009: Jet Airways (JPL) increased 13-times-weekly, Delhi - Kathmandu to twice-daily and will launch daily, Mumbai - Kathmandu flights December 2 aboard a 737.
Indian airlines carried 4 million passengers in October, up +26.7% from the year-ago month. Passenger traffic through the year's first 10 months rose +3.3% year-over-year to 36 million. Market share was divided as follows: (JPL) and JetLite (SAQ) 27.7%, Kingfisher Airlines (KFH) 20.7%, Air India (AIN)/(IND) 18.6%, IndiGo (IGO) 13.6%, and SpiceJet (ROJ) 12.4%.
737-86N (36818, VT-JBN), (GECAS) (GEF) leased.
December 2009: Jet Airways (JPL) transported 760,684 passengers on domestic flights in November, up +33% year-over-year, while load factor rose +9.4 points to 72.3% LF. International passenger numbers climbed +19% to 325,684 with a +12.5-point lift in load factor to 81.9% LF. Its JetLite (SAQ) subsidiary transported 308,641 passengers, up +22%, with a +12-point surge in load factor to 76.7% LF. (JPL) is scheduled to launch Mumbai - Dhaka service on December 23.
Topping the list of money losing airlines were India's three reporting carriers: Kingfisher Airlines (KFH) results were disastrous, while those at Jet Airways (JPL) and SpiceJet (ROJ) weren't all that much better. An over-supplied domestic market and declining demand proved a toxic combination.
(JPL) starts Mumbai - Dhaka with 737-800s to complement its existing Delhi - Dhaka and Kolkata - Dhaka service. This helps to handle intercontinental connections, because the flight from Dhaka to London via Delhi is shoerter than going through Dubai. The Dhaka to London flights are busy. (JPL) also announced the launch of a daily Delhi - Doha flight on January 21 aboard a 737-800.
India is making a considerable effort to join commercial aviation's environmental effort, Civil Aviation Director General, Nasim Zaidi said at the USA-India Aviation Partnership Summit in Washington, with authorities committed to establishing a national inventory of carbon dioxide emissions for the sector (with a base year of 2005) along with programs compelling both airlines and airports to be more efficient and green. "As a developing economy we have a concern of maintaining a balance between the sustainability of a growing economy and the adverse impact this growth can have on climate change," Zaidi said, adding that the Indian government has committed to a nationwide -20% to -25% cut in emissions by 2025. "The objective is to provide enough space to the airlines to grow without adversely affecting the environment."
An Aviation Environment Unit reporting to the (DGCA) will identify problem areas, provide technical guidance and suggest solutions covering both environmental issues and noise to industry stakeholders, he said. Carriers, meantime, have been asked to create similar units within their own companies. "Our fuel efficiency is not in line with the global average" of 0.4 liters per (RTK), he admitted. India currently is operating at 0.54 liters per (RTK), with Kingfisher Airlines (KFH) above 0.6 and Jet Airways (JPL) around 0.5, Zaidi said. "We have work to do in this area." India's (RTK) production ranks 12th in the world, considering the European Union (EU) as a single state.
Airlines have been instructed to adhere to proper maintenance procedures, minimize Auxilliary Power Unit (APU) usage, use Performance Based Navigation (PBN) and continuous descent and consider one-engine taxiing, among other initiatives. (PBN) has been implemented at Delhi, Mumbai, and Ahmedabad and is in progress at Chenai. On the ground, airlines and airports are being asked to monitor waste and look into using solar panels for lighting, constructing plants to recycle waste water or to generate electricity from waste and using compressed natural gas for ground vehicles. Zaidi also said that India has "expressed our willingness" to join the Commercial Aviation Alternative Fuels Initiative.
(JPL) received approval to lease out three 777-300ERs to Royal Brunei Airlines (RBA).
737-86N (36819, VT-JBP), (GEF) leased.
January 2010: (JPL) currently operates 10 777-300ERs, 12 A330-200s, 53 737NGs and 14 ATR72-500s. (SAQ) flies 16 737 Classics and seven CRJ-200s. Those airplanes will be phased out in favor of 737NGs in the coming months. It launched a daily, Delhi - Doha flight aboard a 737-800.
(JPL) remained in the red through the first nine months of its fiscal year, however, posting a -INR5.26 billion loss.
Indian airlines carried 44.5 million passengers in 2009, up +7.9% from the prior year, the Ministry of Civil Aviation reported. Fourth-quarter traffic soared +30.5% year-over-year to 12.5 million passengers and December traffic rose +34.8% to 4.5 million.
Jet Airways (JPL) (17.9%) and JetLite (SAQ) (7.5%) led all companies in full-year market share with a combined 25.4%, followed by Kingfisher Airlines (KFH) at 23.9% and Air India (AIN) with 17.5%. IndiGo (IGO) (13.9%) and Spicejet (ROJ) (12.4%) rounded out the top five. Indian carriers cut capacity during the first half of 2009 but registered year-over-year increases in both (RPK)s traffic and (ASK)s capacity in each of the year's last six months.
December (RPK)s rose nearly +40% over the year-ago month, with average load factor surpassing 80% LF owing to the peak season. IndiGo (IGO) posted a 90% LF load factor for the month, with Jet (JPL) posting the lowest figure at 78.2% LF.
India's airlines transported 43.8 million passengers on domestic routes in 2009. Kingfisher (KFH) led the way with a 23.9% share equal to 10.5 million passengers, followed by (JPL) at 17.9% and (AIN)/(IND) at 17.5%.
(JPL) will launch daily, Delhi - Doha service on January 21 aboard a 737-800. It launched six-times-weekly, Mumbai - Dhaka aboard a 737-800.
Kale Consultants said (JPL) selected Zero Octa, Kale's audit subsidiary, to audit passenger accounting results.
March 2010: Jet Airways Konnect will launch daily Delhi - Dehradun flights on March 28 aboard an ATR72-500.
Jet Airways (JPL) will dry-lease three 777-300ERs to Thai Airways (TII) for three years each. Jet (JPL) also has four 777-300ERs on lease to Turkish Airlines (THY).
May 2010: 737-85R (36694, VT-JBQ; 36695, VT-JBR), deliveries. 3 777-35RERs (35157; 35158; 35161) leased to Thai Airways International (TII).
June 2010: Now flies to >20 international markets.
July 2010: Jet Airways (JPL) Konnect launched daily, Kolkata - Ranchi services aboard an ATR72-500. (JPL) and Kenya Airways (KEN) reached a code share agreement under which (JPL) will place its code on Kenya's daily Mumbai - Nairobi service beginning July 22. Under terms of the agreement, members of either frequent flyer program will be able to earn and redeem miles on the both networks.
737-8BK (33024, VT-JBT), CIT Group (TCI) leased.
September 2010: Jet Airways (JPL) will launch a daily, New Delhi – Milan Malpensa (MXP) service on December 5 on board an A330-200 in a two-class configuration. (MXP) will be (JPL)’s third destination in Europe, in addition to London Heathrow and Brussels.
October 2010: Alitalia (ALI) and Jet Airways (JPL) signed a Memo of Understanding (MOU) to code share on seasonal winter flights to Italian and Indian destinations. (JPL) will launch daily, Milan Malpensa – New Delhi service on December 5.
November 2010: Jet Airways (JPL) earned net income of +INR124 million/+$2.8 million in its fiscal second quarter ended September 30, a major reversal from a -INR4.07 billion net deficit in the year-ago quarter, as revenue surged +31.2% year-over-year to INR35.23 billion.
"The buoyancy in the Indian domestic travel market has been fueled by a healthy Gross Domestic Product (GDP) growth and increased business confidence," (JPL) said in a statement. With India's peak travel season occurring in the current quarter, yields are expected to improve. It noted: "The [Indian airline] industry is operating at seat factors in the high 70s, reflecting the growing demand in the market."
Quarterly expenses lifted +13.2% to INR31.18 billion, including a +27.5% hike in fuel costs to INR9.94 billion. System traffic (including subsidiary JetLite (SAQ)) increased +22.6% to 6.56 billion (RPK)s on a +23.3% rise in capacity to 8.48 billion (ASK)s, producing a load factor of 77.5% LF, up +0.4 point. Significantly, the airline said its breakeven load factor dropped from 94% LF in the September 2009 quarter to 78.1% LF in the period ended September 30. Yield heightened +9.1% to INR3.50, while (CASM) lowered -9.4% to INR2.74. (CASM) ex-fuel decreased -17.4% to INR1.56.
Jet (JPL)'s net income for the first six months of its fiscal year totaled +INR159 million, reversed from a -INR6.32 billion loss in the prior-year period, as revenue climbed +28% to INR61.5 billion.
Jet Airways (JPL) outsources about 70% of its maintenance, says Sitham Nadarajah, Executive VP Engineering & Maintenance. He says (JPL) and its wholly owned subsidiary JetLite (SAQ) share Maintenance Repair & Overhaul (MRO) activities under one division because one “can’t have different standards between full-service carriers and low-cost carriers.” Besides required quality, cost and turnaround time requirements, he urges (MRO) providers to seek performance improvements for their airline customers. The only common airplane type between Jet Airways (JPL) and JetLite (SAQ) is the 737.
December 2010: India's Ministry of Civil Aviation reported that India's airlines carried +18.9% more domestic scheduled passengers in the first 11 months of 2010 compared to the corresponding period in 2009. As of November 30, Jet Airways (JPL) mainline had the highest share of the fragmented Indian domestic market at 19.2%, followed by Kingfisher (KFH) at 19.1%, IndiGo (IGO) at 17.3%, Air India (AIN)/(IND)/(AXB) at 17.1%, Spicejet (ROJ) at 13.2%, (JPL) affiliate JetLite (SAQ) at 7%, and Go Air (GOZ) at 6.9%, the ministry stated.
Airbus (EDS)’s Quovadis Required Navigation Performance (RNP) subsidiary and IndiGo (IGO) have successfully demonstrated, using an A320, the first ‘Required Navigation Performance’ (RNP) flight of any commercial airliner in India, at Cochin International Airport – the nation’s seventh busiest airport. Specially developed by Quovadis, the (RNP) procedure for this airport was validated using Airbus flight simulators.
Jet Airways (JPL) will soon demonstrate the procedure at the airport using a 737-800.
January 2011: Jet Airways (JPL) will resume Mumbai - Shanghai service in the coming fiscal year, which begins in April. (JPL) also
plans to add flights to Tokyo, Seoul, Taipei, and Paris. (JPL) briefly flew from Mumbai to San Francisco via Shanghai, before exiting the route for financial reasons. During the downturn, (JPL)
leased out some 777s to Turkish Airlines (THY) and Thai Airways (TII) but will soon get them back. It also has more A330s arriving.
February 2011: India’s airline market us undergoing plenty of rapid changes in its own right, from a sharp bounce back in demand to Delhi’s new airport terminal to voracious plane buying by Low Cost Carrier (LCC)s. In this context, the country’s largest airline, Jet Airways (JPL) posted a +$32 million net profit from October to December, or +$26 million ex-special items, and a strong 11% operating margin. These results include its low fare unit JetLite (SAQ), which alone accounted for 12% of company revenues and earned a $6 million net profit and a 7% operating margin. It was during the final quarter of calendar year 2009 that (JPL) emerged from bad losses during a deep downturn. But still, its 8% operating margin that quarter was below the 11% it earned in the just-completed quarter. Revenues rose +19% and operating costs rose just +12%. To the industry’s good fortune, traffic in India is currently growing faster than supply, with domestic capacity flown by all airlines up +12%, while passenger counts grew +19%. (JPL) itself grew capacity (ASK)s +12%, while demand grew +15%. Just as importantly, (JPL)’s international profit margins were nearly as good as domestic (11% operating vs 12%), with new routes like Delhi - Milan now offered. One of (JPL)’s key priorities is further improving network connectivity (hubs like Mumbai have Dubai-like geography). And it also aims to improve fleet utilization and perhaps, according to some reports, rebrand its JetLite (SAQ) unit. With rapid economic growth at home, a huge addressable market and stabilized supply and demand conditions, (JPL) is boiling with growth potential. But it does face a motley group of rivals: one state supported (Air India (AIN)/(IND)), another that bleeds money every quarter (Kingfisher (KFH)) and two with lower costs and huge airplane order books (IndiGo (IGO) and SpiceJet (ROJ)). For all of calendar year 2010, (JPL) (not including JetLite (SAQ)) earned a +$42 million net profit ($39 million ex-items) and an 8% operating margin.
(JPL) is interviewing and hiring. They are currently looking for 50 Captains (FC) for their 737NG and 20 Captains (FC) for their ATR72-500's. See their web site for qualifications for each airplane type. (JPL) personnel attended the http://www.FltOps.com Job Fair in Washington DC on November 20.
March 2011: Jet Airways (JPL) may be planning to join the SkyTeam (STM) alliance through a transatlantic joint venture (JV) with Air France (AFA)/(KLM), Alitalia (ALI) and Delta Air Lines (DAL), according to media reports.
"Dow Jones," citing an inside source, said (AFA), (ALI) and (DAL) are in talks with (JPL) to include (JPL) in the (JV). The report follows a similar report in "La Tribune," saying that the (AFA)/(KLM) Group is in negotiations with (JPL) on a wide-ranging cooperation, including code sharing and the transfer of (JPL)’s Brussels hub to Amsterdam. This would lead to (JPL)’s entry into the SkyTeam (STM) alliance, the "French daily" said. It added that a Memo of Understanding (MOU) may be signed as early as this month or in April but could be postponed owing to political developments in India, where government approval is mandatory for such a partnership.
(JPL) operates a hub in Brussels, connecting Mumbai, Chennai and Delhi (DEL) with New York (JFK), Newark, and Toronto Pearson. (JPL) last year opened a (DEL) - Milan Malpensa (MXP) route, in code share with (ALI), fueling off-and-on rumors that (JPL) would close its Brussels operations and move them possibly to (MXP), but those have never been confirmed.
The SkyTeam (STM) alliance is the only alliance with no future partner in India. Air India (AIN)/(IND) will join the Star (SAL) Alliance this year and the Oneworld (ONW) alliance has invited Kingfisher Airlines (KFH)to join.
June 2011: Domestic Indian traffic data published by their regulatory authority the (DGCA) for January - May showed a +18% increase with market share of: Jet Airways (JPL) 26%; Kingfisher Airlines (KFH) 20%; IndiGo Airlines (IGO) 20%; SpiceJet (ROJ) 14%; Air India (AIN)/(IND) 13%; and GoAir (GOZ) 7%.
September 2011: Jet Airways (JPL) is a major privately owned air carrier operating daily flights to destinations throughout India and internationally to Bahrain, Bangladesh, Belgiumk, Canada, Hong Kong, Kuwait, Malaysia, Nepal, Oman, Qatar, Singapore, South Africa, Sri Lanka, Thailand, the UK, and the USA.
Employees = 12,060.
(IATA) Code: 9W - 589. (ICAO) Code: JAI (Callsign - JET AIRWAYS).
Parent organization/shareholders: Tailwinds (owned by Naresh Goyal, (JPL) Chairman) (79.9%); institutional investors (15.74%); and others (4.26%).
Airline subsidiaries/shareholdings: Jet Airways Konnect, JetLite (SAQ) (100%).
Alliances: Air Canada (ACN); Alitalia (ALI); American Airlines (AAL); All Nippon Airways (ANA); British Midland International (BMA); Brussels Airlines (DAT)/(EBA); Emirates (EAD); Etihad Airways (EHD); Gulf Air (GUL); JetLite (SAQ); Kenya Airways (KEN); Malaysia Airlines (MAS); Qantas (QAN); United Airlines (UAL); and Virgin Atlantic Airways (VAA).
Main Base: Mumbai (Bombay) International airport (BOM).
Hubs: Bangalore Bengaluru International airport (BLR); Calcutta International airport (CCU); Delhi Indira Gandhi International airport (DEL); & Chennai International airport (MAA).
Domestic, Scheduled Destinations: Agartala; Ahmedabad; Aurangabad; Bagdogra; Bangalore; Bhavnagar; Bhopal; Bhuj; Chandigarh; Chennai; Coimbatore; Delhi; Diu; Goa; Guwahati; Hyderabad; Imphal; Indore; Jaipur; Jammu; Jodhpur; Jorhat; Khajuraho; Kochi; Kolkata; Kozhikode; Leh; Lucknow; Madurai; Mangalore; Mumbai; Nagpur; Patna; Porbandar; Port Blair; Pune; Rajkot; Srinagar; Thiruvananthapuram; Udaipur; Vadodara; & Varanasi.
October 2011: 737-8AL (37960, VT-JBW), (SIL) leased.
November 2011: Jet Airways (JPL), now India's largest airline, plans to sell and lease back airplanes it owns to raise up to $300 million over the next six months and cut its debt, a top official told "Reuters." (JPL), which has a near-quarter local market share, intends to sell and lease back part of the 40 planes that it owns, M Shivkumar, Senior VP Finance, told "Reuters."
January 2012: Momentum appears to be building toward removing barriers to foreign airlines investing in Indian airlines, potentially opening up a new source of capital for the country's struggling air transport industry.
Currently, non-Indian airlines cannot invest in Indian airlines, though non-airline foreign investors are allowed to own a 49% stake. A recent government-appointed panel recommended that foreign airlines be allowed to buy as much as 49% of Indian carriers, and high-ranking government officials appear open to the proposal.
New Indian Civil Aviation Minister, Ajit Singh told "The Hindu Business Line" that he and the Ministers of Finance and Petroleum will review the panel's recommendation and make a decision shortly on whether to back legislation opening up foreign direct investment by airline companies.
"Airlines today basically require working capital," he said. "They need money. If the foreign companies can invest in these airlines, it is fine."
Brussels Airlines (DAT)/(EBA) will begin flights to New York Kennedy Airport (JFK) in June using A330s. Until now, (DAT)/(EBA) limited is longhaul flying to Africa. The old Sabena (SAB) once flew the route before collapsing after "9/11." And today, Delta (DAL), American (AAL), United (UAL)/(CAL) and even Jet Airways (JPL) all fly it ((UAL)/(CAL) from Newark and (JPL) from both (JFK) and Newark (EWA)).
Jet Airways (JPL) hired 8 737NG Flight Crew (FC) Captains and 5 ATR72-500 Captains in November. (JPL) anticipates continued Flight Crew (FC) hiring through the end of the year and just increased its 737 Captains salary to $9,500/month with a loyalty bonus of $6,500. View the (JPL) web site for additional details and to apply online. See FltOps.com and FAPA.aero. Flight Crew International is currently recruiting 737NG Captains and ATR72 Captains. Applicants can view minimum qualifications and register online at www.flightcrewint.com or contact firstname.lastname@example.org for additional details.
March 2012: A new interline agreement between India's Jet Airways (JPL) and low-cost carrier (LCC) Jetstar (IMU)/(JSA) is a significant development for the two carriers and their respective markets. Jet Airways (JPL) on a single ticket will be able to sell across Jetstar (IMU)(JMA)'s network from Singapore, which predominantly includes points in Southeast and East Asia (where Jet Airways (JPL)'s network is thin) as well as Australia and New Zealand, where traffic flows to India may shift in the short/medium-term as Air India (AIN)/(IND) looks to commence direct flights and Virgin Australia (VOZ) works with new alliance partner Singapore Airlines (SIA).
The agreement further evolves Jetstar (IMU)/(JSA)'s hybrid model as Jet Airways (JPL) passengers, like those of select Oneworld (ONW) Alliance carriers, will receive checked luggage and, on long-haul flights, meals and comfort kits on Jetstar (IMU)/(JSA) flights as part of their ticket whereas other passengers have to pay separately. While this adds complexity and some are sceptical of (LCC)s moving away from a stripped-down model, blurring the lines and adding complexity is rational when yields and network enhancements outweigh the additional cost.
On 17 March, Delhi (DEL) became the third Indian city after Mumbai and Thiruvananthapuram to gain nonstop Jet Airways (JPL) services to Damman (DMM). The eastern Saudi Arabian destination is offered with four weekly frequencies using 737-800s in two-class configuration. (JPL) faces competition from both Air India (AIN) and Saudi Arabian (SVA), which already serve the market with two and three weekly direct flights respectively. Sudheer Raghavan, Jet Airways (JPL)’s (CCO), said: “The airline has already established itself as a prominent brand in the highly competitive Indo-Gulf sector; the new service will provide convenient connections to neighboring countries like Nepal and Bangladesh as well as to important stations in India.”
To overcome its airline industry's serious financial difficulties, India needs a more coherent aviation policy that creates conditions under which carriers can be more successful, according to (IATA) (ITA) Director General & (CEO), Tony Tyler.
Speaking in Hyderabad at the India Aviation 2012 conference, Tyler mapped out India's civil aviation potential. "Let's do some simple math," he said. "If India’s 1.17 billion people traveled at the same frequency as do Americans, a market of 2.1 billion travelers would be created. But even if they only traveled one-third as much, India would have an air travel market of about 700 million - - rivaling that of the USA.
"There is no doubt that India is a market with big potential and that aviation could be a much more significant contributor to the Indian economy. But there are no guarantees that this will occur without well-coordinated policy measures."
He pointed to the "major hurdles" facing Indian carriers. "Air India (AIN)/(IND) (the national carrier) is being sustained on life support of state aid," Tyler said. "The difficulties at Kingfisher (KFH) are well known. And the sector as a whole is not generating the sustainable profits that one would expect from such a large high-growth market."
The Indian government could improve the country's airlines' prospects through several initiatives, he told the conference. For starters, taxes on airlines are too high, he asserted. "All [airplane] fuel [in India] is subject to an 8.24% excise duty," Tyler said. "Then domestic flights face state fuel taxes of up to 30%. The result is destroying the competitiveness of Indian airlines."
Second, he said, airport infrastructure needs to be modernized where necessary. "Where we see value and a clear return on investment, airlines are willing partners in developing infrastructure capabilities," he added. Third, airport charges should be lowered, he said.
Finally, Tyler pushed for India to end its restriction on investment in Indian carriers by foreign airlines. But he warned that "allowing foreign airlines to invest in Indian aviation is not a panacea [because under the current regulatory environment] the odds are stacked against any investor making a positive return on investment in the Indian aviation sector."
(Jet Airways (JPL) will simplify its brands used as of March 25 and will only be offering two products going forward. Jet Airways (JPL) itself will operate under (9W) flight numbers and continue to offer a premium product on the majority of all international services and some selected domestic routes. All low-fare services currently operated by Jet Airways as Jet Airways Konnect and by subsidiary, JetLite (SAQ) will then operate under the new slightly modified Jet Konnect brand. Both Jet Airways (JPL) and JetLite (SAQ) will continue to operate as separate carriers and JetKonnect services will be provided using (S2) or (9W) flight numbers depending on the operator of a specific flight. Jet Airways (JPL) has however abandoned plans to lease four A330-300s for additional long-haul services.
Jet Airways (JPL) and WheelTug signed of a letter of intent (LOI) giving the airline the right to lease WheelTug Aircraft Drive Systems for installation on its 737NG airplanes.
The WheelTug electric drive system uses high-performance electric motors, installed in the nose gear wheels of an airplane, to provide full mobility while on the ground during pushback and taxi operations without using airplane's engines or tugs.
Typically, a taxiing 737 burns 24 to 27 pounds of fuel per minute. The electric WheelTug unit needs four pounds of fuel per minute by using the airplane’s auxiliary power unit (APU), (JPL) said. This represents a -80% reduction in ground operation fuel consumption, as well as less noise and freedom from dependence on tug availability.
Other benefits include substantially reduced carbon dioxide and other greenhouse gas emissions, increased safety and flexibility of operations, faster turnaround times, reduced engine wear and repair costs and decreased noise pollution.
WheelTug estimates the total savings at over -$500,000 per airplane per year. WheelTug Systems will be offered to (JPL) entirely on a lease, or power-by-the-hour model.
April 2012: Jet Airways (JPL) has applied for international traffic rights to launch new routes to France, Germany and Vietnam as the Indian government is giving up a policy that gave Air India (AIN/IND) a monopoly on traffic rights to markets it wished to serve. (JPL) already received traffic rights for new routes to Dar-es-Salaam (DAR) and Malé International (MLE) but has not yet announced a launch date for these routes. AirFrance (AFA) currently operates from Paris Charles de Gaulle (CDG) to Bangalore Kempegowda International (BLR), Delhi Indira Gandhi International (DEL) and Mumbai Chhatrapati Shivaji International (BOM). Lufthansa (DLH) serves Bangalore, Chennai Meenambakkam (MAA), Delhi, Mumbai and Pune Lohegaon (PNQ) from Frankfurt International (FRA). Mumbai and Delhi are also served from Munich Franz Josef Strauss International (MUC). While Air India (AIN)/IND) also serves Frankfurt and Paris CDG from Delhi, no carrier currently operates between India and Vietnam.
(JPL) is reportedly considering moving some its North America flight stopovers from Brussels National Zaventem (BRU) to Munich Franz Josef Strauss International (MUC) provided it is assigned the necessary traffic rights by the Indian government.
737-900ER (GEF) leased delivery.
June 2012: Jet Airways (JPL) has asked the Indian government for approval to cut about -50% of its flights to the remote Northeast of the country that Indian carriers have to serve with a certain number of frequencies based on flights operated on key trunk routes. Because of the big growth in the Indian domestic market over the last couple of years, the direct link based on frequency numbers has led to a big oversupply of seats on these routes.
(JPL) is considering new long-haul services starting next summer, and is aiming to join either the SkyTeam (STM) or Star (SAL) Alliance, according to (JPL) Founder & Chairman, Naresh Goyal.
Goyal said (JPL) is “looking to fly to some new places in the next two to three years, starting from next summer. On the radar are flights to Munich, Frankfurt, Paris, Zurich, and Rome, as well as Beijing and Shanghai.”
Goyal called (JPL) an “ideal partner” for a global alliance. “We are looking not to Oneworld (ONW) Alliance, but to the two others,” he said, without giving a timeframe.
(JPL) is working to better connect domestic network with the international network and further improve its service levels.
Goyal said he has no interest in investing in one of the struggling Indian carriers. “That doesn’t make sense. Not anymore,” he said.
He said the tax regime in Indian aviation has become a “massive burden,” and hopes the Indian government will reduce fuel and airport taxes. “We pay about +35% more for the fuel (in India) compared to when we fly overseas from the same oil company,” Goyal said, adding that taxes at New Delhi airport “increased +346%, becoming the most expensive airport. We are all taking up the issue to try to change that,” he said.
Goyal said (JPL) is “doing better” financially after the airline rationalized many routes, and improved its cost structure and productivity. However, he said this may not be enough and further cost-cutting measures could follow.
Airlines in India have agreed to lower fares -5% to -20% after a reprimand by the Directorate General of Civil Aviation (DGCA), which called the average airfare “phenomenal.” The (DGCA) action was in response to a steady rise in air fares on domestic routes since the end of 2011.
According to (DGCA) Chief, E K Bharat Bhushan, who met with airline (CEO)s in Delhi, the (DGCA) has been under pressure to intervene on behalf of passengers. “The increase in average airfare offered by the airlines is phenomenal, though aviation turbine fuel prices have gone up only by +16% in the last one year,” the (DGCA) said.
Airlines have been advised to upload their revised tariff on their websites as soon as possible. The fare reductions will be on the highest fare categories, which are tickets typically sold very close to the date of departure. Most carriers typically sell more than half their inventory in advance.
Indian carriers have been able to command higher fares mainly because seat capacity in the market has come down after the struggling Kingfisher Airlines (KFH) substantially reduced its international flights. (KFH)’s fleet is down to 14 airplanes from 88 at its peak.
The Indian government requires airlines to periodically submit fare charts to the (DGCA), which the airlines are free to discount. Most have been charging a premium because demand has exceeded supply recently.
737-86N (38029, VT-JFA), (GEF) leased.
August 2012: India’s largest airline group, Jet Airways (JPL) has returned to the black in the first quarter with a net income of +INR52.7 billion/+$948.5 million, up +31.4% from the year-ago period. The group comprises Jet Airways (JPL) and Jetlite (SAQ), and operates a combined fleet strength of 121 airplanes. Net profits after tax grew to +INR247 million against a loss of -INR1.6 billion last year.
The profits come after five consecutive loss-making quarters.
(JPL) is the second Indian carrier to report a reversal of its fortunes. Low-cost carrier (LCC), SpiceJet (ROJ) reported similar results last week. Both have benefited from failing Indian carrier Kingfisher Airlines (KFH)’s drastic cut in capacity as it struggles for survival.
(JPL)’s domestic yield rose +8.9% year-over-year, while JetLite (SAQ) yield increased +43.2%, as fares went up system-wide. The group carried +10% more passengers year-over-year.
“Fuel cost increase and depreciation of the Indian rupee vis-à-vis the US dollar weighed heavily on the industry's profitability. Crude oil prices have come off the highs of $120 per barrel and now range between $100 to $105 per barrel [Brent crude],” (JPL) (CEO), Nikos Kardassis said.
“However, benefits of this have not accrued due to the depreciation of the Indian rupee, which has also put pressure on our dollar-denominated costs.”
The quarter’s results took into account INR1.7 billion for exchange rate fluctuations. System-wide capacity (ASK)s were 10.3 billion, up +10.4%. International operations accounted for 56% of total revenues.
Meanwhile, (JPL) has decided to trim capacity to reduce the debt on its balance sheet and release cash. It completed the sale and leaseback of two airplanes and two engines in the first quarter of Fiscal Year (FY) 2013.
Jet Airways (JPL) has asked the government of India for approval to join the Star (SAL) Alliance having apparently made an internal decision itself after exploring both the Star (SAL) Alliance and the Skyteam (STM) Alliance. According to statements made by a spokesperson of the Indian Civil Aviation Ministry, the government does not want to allow (JPL) to join the Star (SAL) Alliance as long as the alliance does not decide on the fate of Air India (AIN)'s application that has been put on hold by the Star (SAL) Alliance.
During the second quarter, management intends to complete transactions for another eight to nine narrow body airplanes.
Leases 5 737-85Rs (30403; 30407; 30408; 30409; 30410) to Pakistan International Airways (PIA).
September 2012: Jet Airways (JPL) is facing headwinds with its plan to join the Star Alliance (SAL) with competitor Air India (AIN) in strong opposition of the plans given the still unresolved dispute between the alliance and state owned national carrier (AIN), with the Star Alliance claiming Air India (AIN) would not been allowed to join the (SAL) Alliance as it would not meet minimum joining requirements. According to a report by Livemint, the (SAL) Alliance had already been pushing the Indian government and (AIN) to accept a future membership of Jet Airways (JPL) in the alliance since 2011 before the (AIN) application to join has been put on hold.
October 2012: In its most recent financial year, Jet Airways (JPL) reported carrying 17.3 million passengers, up +18% on the previous year, which was itself an increase of almost +22% on the year before that. This means that in the last two years, (JPL) has grown by almost +50%. India’s airlines may not be hugely profitable, but there is no denying that all of them (with the notable exception of Kingfisher (KFH)) are growing.
SEE ATTACHED CHART - - "JPL-2012-10 - TRAFFIC GROWTH."
Although (JPL) only launched international services as recently as 2004, in terms of Available Seat Kilometres (ASK)s, these routes now contribute two-thirds of the airline’s total capacity. In the first five months of this year, passenger numbers on both domestic and international flights were well up on last year’s figures, although in June, the year-on-year improvement was less pronounced. Then in July, both domestic and international traffic fell to below last year’s level.
SEE ATTACHED CHART - - "JPL-2012-10 - TRAFFIC DEVELOPMENT."
This meant that according to (DGCA) data, (JPL)’s share of the domestic market fell to 19.4%. Even though (JPL)’s fully-owned subsidiary Jet Lite (formerly Sahara Airlines) (SAQ) accounts for another +7.2% of the domestic market, it means that the airlines belonging to the Jet Airways Group have lost their market leading position in the domestic market to IndiGo (IGO).
(JPL) currently operates international services to 17 countries, 15 of them non-stop from India, plus Canada (Toronto) and the USA (Newark), which are served via Brussels in Belgium. These are as follows:
Chennai (MAA) to Brussels (BRU), Colombo (CMB), and Singapore (SIN);
Delhi (DEL) to Abu Dhabi (AUH), Bangkok (BKK), (BRU), Damman (DMM), Dhaka (DAC), Doha (DOH), Dubai (DXB), Hong Kong (HKG), Kathmandu (KTM), London Heathrow (LHR), Milan Malpensa (MXP), and (SIN);
Hyderabad (HYD) to (DXB) (ended 16 September 2012);
Kochi (COK) to (DOH), Muscat (MCT), and Sharjah (SHJ);
Kolkata (CCU) to (BKK), and (DAC);
Mumbai (BOM) to (AUH) - on October 18, increased 14x weekly to 18x weekly, Bahrain (BAH), (BKK), (BRU), (DMM), (DAC), (DOH), DXB), (HKG), Jeddah (JED), (KTM), (LHR), (MCT), Riyadh (RUH), and (SIN);
Trivandrum (TRV) to (DMM), and (MCT).
This month, new international services will start from Kochi to Bahrain and Kuwait City, and from Mumbai to Sharjah. However, a number of international services have been dropped this summer including Chennai - Dubai, Delhi - Colombo, Mumbai - Johannesburg, and Trivandrum - Sharjah, while it has been reported that the Chennai - Brussels service will be terminated from mid-November. Whether these cuts to its international network will impact on plans to join one of the three major global alliances remains to be seen. At present, it seems most likely that (JPL) will join the Star (SAL) Alliance, but the Indian government would appear to still prefer Air India (AIN)/(IND) to join that alliance before (JPL).
(JPL) expanded its network between India and the Persian Gulf this month, launching three new routes from Kochi (COK) and Mumbai (BOM). (JPL) already serves Bahrain (BAH) and Kuwait City (KWI) from Mumbai and Sharjah (SHJ) from Kochi, meaning that all three Gulf airports now are served by (JPL) from both Kochi and Mumbai. Sudheer Raghavan, (JPL)’s (CCO), commented: “In keeping with the growing demand from our guests for seamless connections between the Gulf and India, as well as onwards via our international hub in Mumbai, (JPL) is delighted to enhance its services on the India-Gulf sector in the winter schedule. Having emerged as among the leading airlines on the highly competitive Indo-Gulf sector in a relatively short period of time, we are confident that the new services will prove popular with our guests.”
November 2012: Etihad Airways (EHD) is said to be in final talks with Jet Airways (JPL) about taking a 24% minority stake in India's largest carrier. According to the "Times" of India, (JPL)'s Chief Commercial and Chief Operating Officers, Sudheer Raghavan and Hamid Ali have travelled to Abu Dhabi International (AUH) to work out details with the (UAE) national carrier. (JPL) currently operates 17 ATR72-500s, 7 737-700s, 49 737-800s, 4 737-900s, 11 A330-200s and 5 777-300(ER)s and also fully owns low-cost carrier (LCC) Jet Konnect (SQH) that serves many domestic and regional routes with its own fleet of 7 737-700s, 6 737-800s and 2 737-900s and a wide range of airplanes from its parent. (EHD) already holds a 40% stake in Air Seychelles (ASY), 29% in Air Berlin (BER), 10% in Virgin Australia (VOZ) and 3% in Aer Lingus (ARL).
December 2012: Jet Airways (JPL) expanded its code share agreement with All Nippon Airways (ANA). (JPL) will now place its code on (ANA) service between Hong Kong - Tokyo/Osaka and Bangkok - Tokyo. (ANA) will place its code on Jet Airways (JPL) flights between Hong Kong and Mumbai/Delhi; Bangkok and Mumbai/Delhi/Kolkata; Singapore and Mumbai/Delhi/Chennai; and on domestic India routes between Mumbai and Delhi/Chennai/Kolkata.
Boeing Shanghai Aviation Services was inducted into Shanghai’s Pudong Airport Free Trade Zone, becoming the first Maintenance Repair & Overhaul (MRO) company to conduct business in a free trade zone in China. A Jet Airways (JPL) 777-300ER was the first airplane to enter Boeing Shanghai under the new free trade zone policies and underwent passenger cabin reconfiguration.
January 2013: Jet Airways (JPL) has confirmed it is in discussions with Etihad Airways (EHD) to take a stake in the Indian carrier.
In a regulatory filing with the Bombay Stock Exchange, (JPL) said talks “regarding a potential investment” by (EHD) had begun following a recent ruling allowing foreign airlines to buy up to 49% equity in Indian carriers.
(JPL) said an agreement on terms has not yet been reached. “Various structures are being explored by the legal and commercial teams and care being taken to ensure that all the Indian regulatory requirements are fully complied with. By its very nature, there cannot (at this stage) be a firm timeline as to the progress of these negotiations, considering the complexity of trans-national transactions such as this,” according to (JPL).
Indian media outlets have recently speculated (EHD) would take up to a 24% stake in the loss-making (JPL). (EHD)d has previously refused to comment, but (CEO), James Hogan said last month it was interested in the fast-growing Indian market.
Jet Airways (JPL) launched its third (after Delhi and Mumbai) service to Dubai (DXB) on 3 January. The second largest Indian airline at present, (JPL) now operates six-weekly flights from Mangalore (IXE) to (DXB), the Middle-Eastern mega hub. The service between western’ India’s largest port city and Dubai is operated with a 156-seat 737-800. Competition on the route comes from Air India Express (AXB), which has previously held a monopoly in this market since March 2007 and currently operates twice-daily frequencies on the same route.
February 2013: Jet Airways (JPL) has posted a fiscal third-quarter net profit of +INR850 million/+$15.97 million, reversing a loss of -INR1.01 billion year-over-year. (JPL)’s third quarter runs from October to December.
(JPL) is reportedly close to sealing a deal with Etihad Airways (EHD) to take a stake in (JPL), allowing it to retire some of its $2.3 billion debt. The Indian government in September last year allowed foreign direct investment of up to 49% in airlines.
Performance during the period was boosted by higher fares and lower costs. Improved yields helped revenue increase +7% year-over-year to INR42.06 billion. Much of this was achieved through cost-cutting. Fuel costs dropped -3% to INR16.88 billion, while total expenditures fell -8% to INR38.7 billion in the period.
(JPL) (CEO), Nikos Kardassis said, “Efforts on revenues, costs and network side have resulted in turning around the airline operations. This is despite higher fuel prices and rupee depreciation impact that we have had in the last few months. The combined impact of higher yields and lower costs (ex-fuel) has resulted in significantly lowering the breakeven seat factor levels in the business.’’ (JPL) was able to improve yields +17%.
Over the last few months, (JPL) has pulled out of loss-making routes and redeployed airplanes to profitable routes. Key routes discontinued include Mumbai - Johannesburg and Chennai - Brussels. This has helped in improving overall international performance.
(JPL)’s domestic operations earned revenues of INR18.7 billion, accounting for 44% of the total. Domestic traffic fell -13% for the quarter year-over-year. Domestic seat factor was 72.7% LF in the quarter compared to 75.2% LF in the year-ago period. International operations earned INR23.9 billion and accounted for 56% of total revenues. International traffic fell -5.1% for the quarter. (JPL) operates a fleet of 99 airplanes, which include 777s, A330s, 737s and ATR72s. It also operates low-cost services under the "Jet Konnect" brand (SQH).
Jet Airways (JPL) is in the final phase of sealing a deal to sell a 24% stake to Abu Dhabi-based, Etihad Airways (EHD). (JPL) Founder & Chairman, Naresh Goyal and (EHD) (CEO), James Hogan have been meeting with ministers responsible for Finance, Commerce and Aviation in Delhi to apprise them of details of the agreement.
The stake sale will help (JPL) retire some of its debt, which was $2.3 billion at the end of September. (EHD) is expected to pay (JPL) about $300 million for the stake, according to sources close to the deal.
(JPL) is a strong and established brand with 25% of the domestic market share. It will give (EHD) access to a huge Indian market, which despite recent challenges is projected to be among the fastest growing in the world in the next decade. In the past two years, (EHD) has been strategically picking up stakes in airlines around the world including Air Berlin (BER), Air Seychelles (ASY) and Virgin Australia (VOZ).
Two Middle Eastern carriers, Kuwait Airways (KUW) and Gulf Air (GUL), had a 40% stake in Jet Airways (JPL) in the mid-1990s. However, a change in Indian government regulations forced them to divest their stake to Goyal, who had emerged as one of the strongest lobbyists against allowing foreign airlines to invest in India. Ironically, his is the first carrier to benefit from the change in policy.
Analysts in Mumbai said (JPL) could use maintenance services in Abu Dhabi and import aviation fuel directly from the emirate to circumvent the huge sales tax on local purchases. For (JPL), the deal provides access to a global network and ability to funding support that it could use to order more narrow body airplanes.
The strengthening of Jet Airways (JPL)’s Middle Eastern links could impact Indian flag carrier, Air India (AIN)/(IND) in a significant way. The airline, through its low-cost carrier (LCC) arm, Air India Express (AXB), connects almost all the major cities in the region. Viability of these short-haul international operations is likely to be hit with the new alliances. The government’s current position is that it will not allow Air India (AIN)/(IND) to be opened up to a strategic partner. However, other private airlines including SpiceJet (ROJ) and Go Air (GOZ) are negotiating with international airlines for possible stake sales.
JorAMCo signed a contract with Jet Airways (JPL) to provide "C-3" Airplane Maintenance Checks on three A330s.
March 2013: India’s fifth largest facility after Delhi, Mumbai, Chennai and Bangalore, Kolkata Airport serves the principal commercial and cultural center of East India, inhabited by a population of more than >14 million. As with many other airports throughout the country, Kolkata faced considerable capacity constraints owing to rapid traffic growth in the recent years. These issues are now partly solved as the new passenger terminal opens this month.
According to annual data (year running April - March) published by Airports Authority of India, in the year ending March 2012, a total of 10.3 million passengers travelled to or from Kolkata Airport. Of these, around 15% used international services, while the remaining 8.7 million travelled domestically.
SEE ATTACHED - - "JPL-2013-03 - KOLKATA TRAFFIC."
While international travel at Kolkata Airport showed higher dynamics in 2011/12 (+9.7% growth against 2010 figures vs +6.5% for the corresponding period in the preceding year), domestic traffic grew stronger in the longer-term perspective (68% compared to 2006 vs 23% for international traffic). In the period April to December 2012 domestic traffic was down -6.3% and international traffic up +3.3% compared to the same period in 2011.
Hong Kong and Chittagong are new destinations. Analysis of capacity data for Kolkata in April 2013 shows that international frequencies are up by +44.7% in terms of weekly frequencies, compared to the same period of 2012. Jet Airways (JPL) is by far the largest carrier operating in the international market from Kolkata, and has 17% of weekly departures and marginally less than 16% of seats. (JPL), which served Dacca and Bangkok with daily flights from the capital of West Bengal, increased the frequencies on the Thai route to twice-daily in the course of last year. Emirates Airline (EAD) provides marginally less seats and around half of (JPL)’s frequencies on its lone service to Dubai, but nevertheless makes it #2. Air India (AIN)/(IND) expanded considerably in Kolkata over the last year (weekly international frequencies +160% in April 2013 vs. April 2012), as it became the fourth carrier to operate to Dacca (daily services also provided by Biman Bangladesh (BNG), Jet Airways (JPL) and United Airways Bangladesh (UBD)).
Bangkok is the largest international destination from Kolkata and, in addition to the twice-daily Jet Airways (JPL) service, it is also offered on daily basis by both Thai Airways (TII) and IndiGo (IGO). Thai AirAsia (THA) introduced changes to its daily offering in the market from Bangkok to Kolkata in the course of last year, as it relocated to Bangkok Don Mueang last October.
Two genuinely new international destinations were added to Kolkata’s network since April 2012. In August, United Airways Bangladesh (UBD) added its second route to Kolkata establishing the thrice-weekly link to Chittagong in south-eastern Bangladesh. Four-weekly services to Hong Kong were then inaugurated by Dragonair (DRG) in November, as (DRG)’s second route to the Indian subcontinent.
SEE ATTACHED - -"JPL-2013-03 - KOLKATA TOP INTNL AIRLINES."
Perhaps unsurprisingly, Delhi and Mumbai are the two largest domestic destinations from Kolkata and the only ones to be served with more than >100 weekly frequencies. However, while capacity to Mumbai grew by +6.7% in the year ending April 2013 (thanks to IndiGo (IGO) adding a fourth weekly flight to the capital), the market to Delhi saw reductions of -24% in terms of weekly frequencies. Of the six carriers operating flights from Kolkata to Delhi, virtually all have reduced capacity since last year (IndiGo (IGO) added one weekly service bringing its offering up to a total of 42), including the withdrawal of Jet Airways (JPL) from the market (previously it operated 11 weekly flights).
At 38% of weekly seats offered in Kolkata, IndiGo (IGO) is the largest domestic operator at the airport providing services to 15 destinations across the country. It also is one of only two carriers to increase their offering in April 2013 (+3.3% weekly seats vs. April 2012). The only other airline to do so is GoAir (GOZ), which in the course of last year added daily flights each to Ahmedabad and Bagdogra (it also serves Delhi and Port Blair with the same frequency).
SEE ATTACHED - - "JPL-2013-03 - KOLKATA DOMESTIC TOP 10."
The Indian government has eased control over airplane imports by airlines and other operators. For decades, airlines, flying schools and non-scheduled operators had to obtain permission for importing airplanes from the Aircraft Acquisition Committee, which was often a bottleneck for airline expansion plans.
This is the second major move by India to liberalize civil aviation in recent months — the first was allowing foreign direct investment of up to 49% in Indian carriers. The move will be an incentive for carriers such as IndiGo (IGO) and GoAir (GOZ), which have ordered a large number of airplanes. It will also make the process easier for the proposed AirAsia (ASW)-Tata joint venture, which has ambitious plans to scale up as soon as permissions are in place.
The Ministry of Civil Aviation said that henceforth, operators wanting to import airplanes will need only an in-principle approval, which is mandated by the Indian Aircraft Rules & Reserve Bank guidelines.
The Ministry of Civil Aviation has served as a gatekeeper on airplane acquisitions, mainly to avoid over-capacity. The idea was to control growth so airlines remained profitable, preventing huge losses. With economic liberalization, the government wants airlines to decide for themselves. India’s Minister for Civil Aviation, Ajit Singh said the committee is no longer relevant. The Directorate General of Civil Aviation (DGCA) will deal with airplane import and replacement. The Ministry has approved imports of 97 airplanes by airlines and cargo operators in the last 15 months.
IndiGo (IGO) has a fleet of 35 A320s; Jet Airways (JPL) follows with 33 airplanes. India’s scheduled airlines have a total of about 390 airplanes in their fleets, according to (DGCA) data.
April 2013: Fast-growing Etihad Airways (EHD) is taking almost a quarter stake in Jet Airways (JPL), giving it a bigger foothold in the fast-growing Indian market.
Under the deal, (EHD) will buy more than >27 million new shares in (JPL) for $379 million, giving it 24% of (JPL)’s enlarged share capital. The $379 million investment is the first by an overseas operator in an Indian airline since ownership rules were relaxed and provides India’s largest carrier with a deep-pocketed global partner as well as cash to retire debt.
Etihad (EHD), which has minority stakes four other carriers including Air Berlin (BER) and Virgin Australia (VOZ), has been expanding quickly as it competes with regional rivals Qatar Airways (QTA) and Emirates (EAD), which carries a significant share of the Indian traffic to the Gulf and beyond. “It’s a game-changing opportunity for Etihad (EHD), and a game-changing opportunity for India,” Kapil Kaul, regional head of the Centre for Asia Pacific Aviation (CAPA), told "Reuters."
Kaul said (JPL) would benefit from strategic expertise, cheap financing and possible fuel import benefits in addition to the capital injection. “It (the deal) is expected to bring immediate revenue growth and cost synergy opportunities, with our initial estimates of a contribution of several hundred million dollars for both airlines over the next five years,” said James Hogan, (EHD)’s (CEO).
As part of the agreement (JPL) will establish a hub in Abu Dhabi and expand its reach through (EHD)’s global network, while the airlines will also expand existing operations and introduce new routes between India and the Gulf.
The deal, finalized after months of negotiations, is a vindication for the government which has struggled to attract overseas companies wary of regulatory uncertainty and bureaucratic red tape.
Etihad (EHD) will buy 27.3 million new shares of (JPL) at 754.74 rupees per share, a 31.7% premium to (JPL)’s closing share price, and acquire 24% of JPL’s expanded share capital.
(EHD) will also inject $220 million. Part of this includes its February 27, $70 million sale and leaseback purchase of (JPL)’s three pairs of slots at London Heathrow Airport. (JPL) continues to operate these slots.
The remaining $150 million will be invested by (EHD) through a majority equity investment in (JPL)’s "Jet Privilege" frequent flyer program.
(JPL) owner, Naresh Goyal will hold 51% of the airline after the deal.
“The price is good for (JPL). I think (EHD) may have paid over the odds slightly, but with Kingfisher (KFH) out of the picture, there is only one full service heavyweight in town, and that’s (JPL),” said Sudeep Ghai, partner at consultancy Athena Aviation.
The deal sets a valuation benchmark for further investment in Indian airlines, with budget carrier SpiceJet (ROJ) Ltd frequently the subject of stake sale reports.
(JPL) shares have had a turbulent ride in recent months as talks with Etihad (EHD) dragged on. The stock is up about +70% since November, after media reports about a possible stake sale.
Despite high growth potential, India has been a tough aviation market in recent years, although competition has eased since former No 2 Kingfisher Airways (KFH) stopped flying late last year, dragged down by debt and cash-flow problems.
The premium paid by (EHD) is sharply higher than the 5.5% premium Singapore Airlines (SIA) Ltd paid to lift its stake in Virgin Australia (VOZ) Holdings Ltd to 19.9% in another deal announced April 24th.
“This transaction further strengthens the balance sheet of Jet Airways (JPL) and, more importantly, underpins future revenue streams, which will accelerate our return to sustainable profitability and liquidity,” Goyal said.
(EHD) (CEO), James Hogan said the link-up is “expected to bring immediate revenue growth and cost synergy opportunities, with our initial estimates of a contribution of several hundred million dollars for both airlines over the next five years. “The Indian market is fundamental to our business model of organic growth partnerships and equity investments. This deal will allow us to compete more effectively in one of the largest and fastest-growing markets in the world.”
Bank of America Merrill Lynch and Credit Suisse advised (JPL) on the deal, while (HSBC) was the adviser for Etihad (EHD), several sources said.
Current estimates predict the Indian market will grow to 42 million travelers over the next five years at a rate of 10% per year. The carriers expect to find synergies and cost savings in areas such as fleet acquisition, maintenance, product development and training.
They will also explore joint purchasing opportunities for areas such as fuel, spare parts and catering supplies. Other areas of cooperation will include joint training of pilots (FC), cabin crew (CA) and engineers (MT), as well as maintenance of common airplane types.
SEE ATTACHED - - "JPL-2013-04 - EHD LINK" WITH (JPL) (CEO), (EHD) (CEO), (JPL) CHAIRMAN, & (EHD) (CFO).
May 2013: Jet Airways (JPL) celebrates its 20th anniversary!
(JPL) reported a net loss of -INR4.8 billion/-$89 million for the 2012 - 2013 fiscal year ended March 31, narrowed from a loss of -INR12.3 billion in the year-ago.
(JPL) shareholders have approved plans for Etihad Airways (EHD) to take a major stake in (JPL). At an extraordinary general meeting in Mumbai, the shareholders agreed to allow (EHD) to take a 24% holding in preferential shares.
The allotment of the shares is subject to fulfillment of certain conditions, including the approval of India’s Foreign Investment Promotion Board and the nation’s Competition Commission. The two airlines signed their agreement last month, with (EHD) paying $379 million for its shareholding as well as investing a further $220 million in (JPL).
The deal gives (EHD) a bridge into the rapidly-expanding Indian market. The agreement will bring expanded code sharing, integrated frequent flyer programs, plus new routes between India and Abu Dhabi. (EHD) (CEO), James Hogan has described the Indian market as “fundamental to our business model of organic growth partnerships and equity investments.”
(JPL) launched New York - Brussels - India A330-300 service on May 1st. (JPL) expanded its offering to Kuwait City (KWI) on May 16th, when it launched a stopping daily service from Kochi (COK) via Abu Dhabi (AUH), complimenting its existing twice-daily non-stop schedule from Mumbai. Flights on the new route are operated using 737-800s in competition with Kuwait Airways (KUW)’s also daily non-stop flights from Kuwait City to Kochi, and Air India Express (AXB)’s thrice-weekly schedule via Mangalore.
South African Airways (SAA) and Jet Airways (JPL) signed a code share agreement. (SAA) will code share on (JPL) flights between Mumbai, Delhi, Bangalore, Hyderabad, Chennai, and Thiruvananthapuram. (JPL) will code share on (SAA) flights between Mumbai and Johannesburg, Cape Town, and Durban.
India is likely to oppose the reported European Union (EU) threat to impose fines on Air India (AIN) and Jet Airways (JPL) for not accepting (EU)’s emissions trading scheme (EU-ETS) and not reporting their emissions over European skies. Only these two Indian carriers, which fly to Europe, are likely to be slapped a total fine of around Euros 30,000, while eight Chinese carriers could face fines totalling Euros 2.4 million euros, they said.
Refusing to be cowed down to the (EU) threat, the officials said the two Indian carriers operate a total of about 5 - 6 flights a day, while their European counterparts together operated 30 - 40 daily flights to India. On top of this, several European carriers overfly India for which they require permission. The officials said India had the option of taking counter-measures which could “prove costly for European carriers.” Indian airlines also have major airplane orders from European firms like Airbus (EDS) and its parent company, (EADS), which constitute Europe’s most important exports. India had last year joined Russia, China, the USA and about 18 other major countries in opposing (EU-ETS).
India and China had also asked their airlines not to participate in a permit system that entitled them and other producers of greenhouse gases like a steel factory, to emit greenhouse gases by paying for the right to emit them. Officials said India and several other nations, which are major aviation nations, have been opposing the (EU-ETS) as it was “ultra vires and went counter to the provisions of the (UN body) International Civil Aviation Organization.
Jet Airways (JPL) plans to order more airplanes as it prepares to fend off competition from Asia’s biggest budget carrier, AirAsia (ASW) which seeks to start operations in the country this year with a new subsidiary AirAsia India (AAI). (JPL) is considering an order for 737 airplanes, according to K G Vishwanath, (JPL)’s VP Commercial Strategy.
(JPL) will boost domestic seat capacity by as much as +8% a year as it takes delivery of 46 airplanes ordered with Boeing earlier, over three years, Vishwanath said. The number of airline passengers in the country may triple to 180 million by 2021, the government has forecast, as more people fly instead of taking trains. Over the past seven years, airline passenger traffic in India more than doubled to about 60 million annually. In comparison, Indian railways carry 23 million travelers every day on Asia’s oldest network.
June 2013: Jet Airways (JPL) said that its (CEO), Nikos Kardassis has resigned from the firm. “Nikos Kardassis has resigned with effect from June 5,” (JPL) said. (JPL)’s Chief Operating Officer Hameed Ali will be the “acting (CEO)”, until a replacement for Kardassis is appointed. (JPL) thanked Kardassis for his “significant contributions” to (JPL) over a period of five years.
(JPL) has appointed Gary Kenneth Toomey as its new (CEO), succeeding Nikos Kardassis. Toomey is former President & (CEO) of the Air New Zealand Group and Airlines (PNG) in Papua New Guinea during periods of major expansion. Prior to that, he was deputy (CEO), (CFO) and Executive Director of Qantas (QAN) and (CFO) of Australian Airlines (AUS).
Airline analysts in Mumbai say Toomey will lead the next phase of (JPL)’s growth. His next challenge will be managing the partnership with Abu Dhabi-based carrier Etihad (EHD). In May, (JPL) shareholders approved an equity deal through which Etihad (EHD) will buy shares in (JPL) for $379 million, giving it 24% of the share capital. (EHD) will also inject an additional +$220 million to recapitalize the airline.
The deal, which is yet to be approved by Indian regulators, is the first case of foreign investment in an Indian domestic airline. Most Indian airlines have been loss-making for the past two years, mostly due to higher fuel costs and overcapacity.
(JPL) reported a net loss of -INR4.8 billion/-$89 million for the 2012 - 2013 fiscal year ended March 31, narrowed from a loss of -INR12.3 billion in the year-ago period.
On the newly revamped (JPL) board, (JPL) will have four members and (EHD) three members, including the (CEO).
The (JPL) - (EHD) deal is the first overseas investment in an existing Indian carrier since the government eased restrictions in September to allow foreign firms a 49% stake in domestic airline companies.
(JPL) is India’s second-largest airline, with a 22.6% market share, according to the country’s civil aviation regulator.
Last month, (JPL) reported a quarterly net loss of -4.96 billion rupees/-$90 million in the three months to March, against a loss of -2.98 billion rupees a year earlier, after being hit by rising costs.
737-8AL (39059, VT-JFJ), (MC) Aviation Partners leased.
July 2013: Since reporting its maiden profit in 2011, Etihad Airways (EHD)'s financial results have shown steady and solid growth, even in the face of less than certain global economic conditions. (EHD)’s 1st half 2013 results suggest the strength of its ‘equity alliance’ strategy, with (EHD) recording record double-digit growth in the period, with a particularly strong contribution from its partner airlines.
Revenue is at record levels, but (EHD) only discloses bottom line results on an annual basis. (EHD) reported 2nd quarter 2013 passenger revenue of USD921 million, up +8% year-on-year. 1st half 2013 passenger revenue growth was even stronger, up +13% year-on-year to USD1.8 billion. Overall, total revenue (including cargo) grew to USD2.5 billion for the first six months of 2013, an increase of +14%. Of this, Etihad (EHD)'s partnership revenue comprised 20% of total passenger revenue in both periods.
(EHD)’s plan to take a 24% stake in India’s Jet Airways (JPL) may miss the completion deadline laid down in the shareholding agreement, according to Indian media reports. The "Business Standard" newspaper said the July 31 transaction closure deadline was likely to be overshot as it has not received regulatory approval from the various Indian government bodies.
The July 31 deadline, known as the long stop date, stipulates that all regulatory approvals should be obtained by that time. The newspaper said that while both sides could agree to extend the deadline, the agreement also allowed for the termination of the deal if regulatory approvals were not met. It is understood that negotiations are at a delicate stage.
According to the newspaper, Indian regulators are seeking revisions to the terms of the deal, amid concerns that additional traffic rights set out in the agreement are biased in favor of (EHD). “Both parties are working towards achieving the regulatory approvals before the long stop date of 31 July 2013 stipulated in the agreement,” an (EHD) spokesman said. “We are not in a position to comment further at this time.”
(JPL) plans to launch a daily, Bengaluru - Vijayawada service and add frequencies on two routes from 25 July. It also plans to add six and 14 weekly frequencies on the Bengaluru - Kochi - Tiruchurapalli (in the state o0f Tamil Nandu) and Bengaluru - Mangalore routes, respectively.
(JPL) will deploy ATR72-500 airplanes on these routes, it says.
Jet Airways (JPL) competes with Air India (AIN)/(IND) and SpiceJet (ROJ) on the Bengaluru - Mangalore and Bengaluru - Kochi routes.
737-8AL (39060, VT-JFK), (BOC) Aviation (SIL) leased, 3 737-85Rs (42799, VT-JFW; 42800, VT-JFX; 42804, VT-JFY), Avolon Capital leased, and 777-35RER (35160, VT-JER) returned from lease to Thai Airways (TII).
August 2013: Jet Airways (JPL) posted a net loss of -INR3.55 billion/-$59.8 million in the fiscal first quarter ended June 30, reversed from a profit of +INR247 million in the year-ago quarter. Revenues fell -12.3% to INR40.64 billion compared to INR46.4 billion in the year-ago period.
According to FAPA.aero, Jet Airways (JPL) has been hiring ExPat Captains (FC) on 777s effective May and screening dates started in April. SEE ATTACHED - - "JPL-2013-08 - FLIGHT CREW HIRING."
September 2013: Shares in Jet Airways (JPL) rose as much as +7.7% after Etihad Airways (EHD) said it expected its investment in the Indian carrier to be cleared by Indian authorities “imminently”. The deal, which had been delayed due to concerns raised by regulators and politicians in India, won a key approval from the Foreign Investment Promotion Board in late July. It still needs to be cleared by the antitrust regulator and a cabinet panel. (EHD) must win approval from four Indian governmental bodies before the deal is cleared.
(EHD) and (JPL) have extended the deal closing deadline for the second time until the end of September. (EHD) is buying a 24% stake in (JPL) for about $379 million. It will also invest $150 million in (JPL)’s frequent flyer program, and paid $70 million to buy (JPL)'s three pairs of Heathrow slots through a sale and leaseback agreement. Jet Airways (JPL) shares are up +4.3% at 305 rupees, still less than half the 754.74 rupees a share (EHD) is paying for the stake.
Etihad Airways (EHD) is planning to increase both its frequencies and capacity between its Abu Dhabi base and India. The move comes as (EHD) awaits final approval from Indian regulatory bodies to take a 24% stake in (JPL).
(EHD) President & (CEO), James Hogan has spoken on several occasions of the importance of the Indian market, where a burgeoning middle class is increasingly turning to flying as a mode of transport. "Following the recent signing of a new air services agreement between India and the (UAE), we now have the opportunity to add significant capacity between the two countries, not only meeting existing demand for trade and tourist travel but also ensuring that we can meet the continued strong growth which is expected between our two countries,” Hogan said.
Beginning November 1, (EHD) will more than triple the number of seats it currently offers on its services between Abu Dhabi, Mumbai, and New Delhi. By the end of this year, (EHD) will have increased its daily flights to Mumbai and New Delhi from daily to double-daily.
(EHD) will also use larger equipment on the routes, with one of the daily Mumbai services switching to an A340-600 and one of the New Delhi frequencies to now utilize an A330-200, rather than A320-family jets. (EHD) will also upgrade its daily Abu Dhabi - Chennai flights from a 136-seat A320 to a 174-seat A321.
Subject to regulatory approval, (EHD) also intends to code share on a wide range of flights operated within India by (JPL). Details of new routes and code shares between Abu Dhabi and India will be announced as those approvals materialize. Additionally, as part of its increased presence in the Indian market, (EHD) has hired some 200 new Indian cabin crew personnel.
October 2013: Jet Airways (JPL) has reported a net loss of -Rs8.91 billion/-$145 million for the quarter ended September 30, widened from a net loss of -Rs997 million in the year-ago period. (JPL) was hurt by depreciating currency, high fuel prices and a sluggish Indian economy.
November 2013: The Competition Commission of India (CCI) finally cleared the regulatory hurdle for Etihad Airways (EHD) to buy a 24% stake in Jet Airways (JPL). The deal is the first investment by a foreign airline into an Indian carrier, since the government permitted such investments in September 2012. It is expected to pave the way for other foreign airlines wanting a slice of the India’s huge but underserved market.
In a 23-page order, the (CCI) argued the deal—and the new bilateral air-services agreement between India and the United Arab Emirates (UAE) will not significantly impact competition. The new bilateral agreement, signed just after (EHD) announced plans to invest in (JPL), increases the number of seats between India and the (UAE) almost fourfold to 50,000 seats over three years. Other Indian carriers and airports had opposed it, saying traffic would be funneled out of India into Abu Dhabi.
A final agreement between the two carriers is expected to be inked in about two weeks. The process was delayed by several months, and has been cleared by India’s capital markets regulator, the Foreign Investment Promotion Board and the Cabinet Committee of Economic Affairs. (EHD) will pay $379 million for the equity, in addition to $150 million to buy a majority stake in Jet Privilege, the frequent flier program.
(EHD) will pick up 27.2 million shares at not less than Rs754/$11.81 each. (JPL)’s stock closed at Rs331 on the Bombay Stock Exchange on November 13th.
The tie-up with (EHD) is expected to revive (JPL) that is now steeped in red ink. (JPL) reported its worst ever quarterly loss of -$145 million earlier this month. It has over the past year lost its leadership position to IndiGo (IGO), a low-cost carrier (LCC) that has been able to control costs more effectively.
The money from (EHD) will help repay (JPL)’s high-cost debt. Analysts say the synergies will help cut costs and start the turnaround process. (EHD) has built its network by a string of acquisitions that include Virgin Australia (VOZ), Air Berlin (BER), AirBaltic (BAU), and Air Seychelles (ASY). The agreement with (JPL) will easily be the biggest in terms of potential traffic benefit to the Gulf carrier.
Jet Airways (JPL) has inked a new code share deal with Garuda Indonesia (GIA), which includes full reciprocal frequent flyer programs. The deal brings the two airlines closer together as they each seek to access more of Asia’s biggest and fastest growing markets. (JPL) will put its code on Garuda Indonesia (GIA) flights between Singapore and Jakarta. (GIA) will put its code on (JPL)’s services from Singapore to Delhi, Mumbai, and Chennai. Members of both airlines’ frequent flyer programs will also be able to earn and burn miles across the full (GIA) network in Indonesia and (JPL)’s Indian and international routes. (JPL) Senior VP Commercial, Gaurang Shetty said the deal was significant because of the strategic importance of Indonesia. “Indonesia is a popular tourist destination for Indian travellers and a strategic trade and investment partner for India. With the seamless connections offered by this arrangement, we are confident that this code share will see a further increase in demand for business and leisure travel between India and Indonesia,” said Shetty. (GIA) also emphasized the importance of the Indian market. Erik Meijer, Executive VP Marketing & Sales said: "Through this agreement, Garuda Indonesia (GIA) will be able to extend its service to India, which is an important market for Indonesia, both in terms of business as well as leisure travel while Jet Airways (JPL) will provide more convenient connections for their passengers to Indonesia." Currently, there are no carriers flying between India and Indonesia.
December 2013: Less than a month after clearing the final regulatory hurdle in its bid for a 24% stake in Jet Airways (JPL), Etihad (EHD) has announced the first stage of a major expansion in its Indian operations. It is doubling frequencies between its Abu Dhabi base to several Indian cities and increasing airplane capacity.
Etihad (EHD) is doubling frequencies to 14x-weekly between Abu Dhabi and Mumbai and New Delhi (effective immediately); Kochi (June 2014); Bangalore and Chennai (July 2014); and Hyderabad (October 2014). Some flights on its Mumbai and New Delhi routes will be upgraded from Airbus A320s to A330s or A340s. New 174-seat A321s will be used on all Abu Dhabi - Chennai services, and between Abu Dhabi and Kochi from June 2014.
Etihad (EHD) is also laying the foundations for funneling increasing amounts of traffic (both passenger and freight) from India through its Abu Dhabi hub. “India is one of the world’s largest and fastest-growing air travel markets, and will play an increasingly important role in our growth,” (EHD) President & (CEO), James Hogan said. Pending the opening of a new facility, USA-bound passengers will be able to clear USA immigration and customs at Abu Dhabi. This is a controversial move, with USA airlines complaining that it gives (EHD) an unfair advantage by allowing it to sidestep the often-long immigration and customs queues at USA gateways.
Passengers who have pre-cleared these steps are treated as domestic passengers when arriving in the USA, allowing for faster disembarkation times.
Subject to regulatory approvals, (EHD) and (JPL) also plan to code share on each other’s flights between Abu Dhabi, India and other markets in the Middle East, North America and Europe.
(EHD) will also code share on new flights by (JPL)’s between India and the USA, via Abu Dhabi, again subject to regulatory approval.
Both airlines are also exploring synergies ranging from integration of their loyalty programs to shared airport facilities and offices, common training of pilots (FC) and flight attendants (CA) and deployment of joint sales forces in markets served by both carriers.
737-8AL (39063, VT-JFQ), (BOC) Aviation (SIL) leased.
January 2014: Jet Airways (JPL) and SpiceJet (ROJ) are expected to report steep losses in the quarter ended December 31, 2013, hurt by high fuel prices, a weak rupee and high fares. (JPL) is expected to post a loss of around -380 crore rupees to -475 crore rupees, including its subsidiary JetKonnect (SAQ). SpiceJet (ROJ) may report a loss of between -175 crore rupees and -215 crore rupees.
In the year-ago quarter, (JPL) and SpiceJet (ROJ) earned 85 crore rupees and 102.1 crore rupees in net profit, respectively. Both will report their latest quarterly earnings in the next few weeks.
India's airlines have been hurt by high prices of aviation fuel, which makes up half their operating cost, while the rupee's fall against the greenback last year added to their dollar-denominated costs. A rise in fares also hurt passenger traffic in the December quarter, which because of the festive season and Christmas and year-end holidays, is normally the peak period of the year for airlines.
The fresh losses will cause more damage to the balance sheets of both the airlines. "Jet Airways (JPL)'s losses in fiscal year 2013 - 2014, excluding adjustments and income from asset sale, could almost wipe out the entire US$379-million equity infusion by Etihad Airways (EHD) and (put it) on course to be the highest-ever yearly loss."
"Domestic operations are a big negative and continue to be unviable and this is drawing down the entire financial performance." (EHD) will infuse more money in (JPL). He said that a "meaningful revival might take longer than expected".
As for SpiceJet (ROJ), the airline's "fiscal year 2013 - 2014 losses could be closer to the total combined losses since 2007, which are Rs 1,186 crore but subject to 4th quarter performance".
According to figures from the (DGCA), Jet Airways (JPL) (including JetKonnect (SAQ)) has around 25% of the Indian domestic market in 2013, second only to IndiGo (IGO)’s 30%. Based on figures for January to November, (JPL) will have carried around 11.3 million domestic passengers in 2013 at an average load factor of 71% LF, while JetKonnect (SAQ) (still referred to as "JetLite" (SAQ) by the (DGCA)) will have carried 3.5 million passengers at a load factor of around 73% LF. SEE ATTACHED - - "JPL-2014-01 - DOMESTIC CAPACITY."
Based on current schedule data, Jet Airways (JPL) (including JetKonnect (SAQ)) has over >15% of domestic seat capacity at 11 of India’s top 12 domestic airports, but over >30% at just two, Mumbai and Bengaluru. In Delhi, (JPL) ranks third after IndiGo (IGO) and Air India (IND). Analysis of schedule data reveals that during the last 12 months, (JPL) and (SAQ) have both dropped four domestic routes each.
While demand for domestic air travel has only recently returned to the levels of 2011, international traffic at Indian airports has grown year-on-year in 77 of the last 82 months (going back to January 2007), and in the period April to October 2013, international passenger numbers have risen +12% when compared with the same period in 2012. SEE ATTACHED - - "JPL-2014-01 - INTERNATIONAL MARKET."
Analysis of current schedule data for international routes from Indian airports reveals that (JPL) has around 12% of seat capacity, marginally behind Air India (IND), and not that far ahead of Emirates (EAD). Indian carriers (in pale green) account for only 35% of seat capacity on international routes, though SpiceJet (ROJ) (+52%) is the fastest-growing airline in the top 12. (JPL)’s international network currently comprises just 20 destinations, served by around 60 daily flights. Dubai (49 weekly flights), Singapore (42), Abu Dhabi (39) and Bangkok (35) are the most frequently served non-Indian airports. Brussels ranks top among the limited European destinations with 28 weekly flights, but this is thanks to the airline’s small ‘scissor hub’ which sees it serve New York Newark and Toronto Pearson with daily flights via Brussels, using airplanes originating in Delhi and Mumbai. (JPL)’s European routes to Brussels and London Heathrow (twice-daily from Mumbai and daily from Delhi), will soon be joined by (JPL)’s first ever service to Paris (CDG), its 21st international destination. Daily flights from Mumbai are scheduled to begin on May 14 using (JPL)’s A330-200s.
This month has seen the launch of a new daily service from Chennai to Abu Dhabi, the home airport of Etihad (EHD). This brings to four the number of Indian airports that (JPL) now serves with non-stop flights to Abu Dhabi. In another recent development, it was announced by Etihad (EHD) that from March 1st, it will be leasing two 777-300ERs from (JPL) to operate daily flights from Abu Dhabi to New York (JFK), with (JPL) becoming the designated operator from May 1st.
The new daily non-stop service from Chennai (MAA) to Abu Dhabi (AUH) on the 2,970 km route began on January 15th using (JPL)’s 737-800s. Recent major investor, Etihad Airways (EHD) also serves the route with daily flights. The 737-800 then continues on to Dammam (DMM) in Saudi Arabia. Chennai becomes the fourth Indian airport after Delhi, Mumbai and Kochi to have non-stop Jet Airways (JPL) service to Abu Dhabi. Also on January 15th, (JPL) began daily flights from Kochi (COK) to Dammam (SEE ATTACHED - - "JPL-2014-01 - TO DAMMAN), again using 737-800s on the 3,330 km route, which is also served by Saudi Arabian Airlines (SVA) with twice-weekly flights. Also on January 15th, (JPL) launched daily flights on the 270 km route between Vadodora (BDQ) and Indore (IDR) using an ATR72. There is no competition on the route which is currently only scheduled to operate until March 29th.
Gary Toomey, (JPL)'s most recent (CEO), former Air New Zealand (ANZ) boss, has resigned with immediate effect after less than four months in charge.
Mumbai’s Chatrapati Shivaji International Airport (CSIA) inaugurates a new terminal on January 10. (CSIA) (which has had two international and one domestic terminal built over the past five decades) currently handles 32 million passengers.
The new integrated building, called Terminal 2, will increase the airport’s capacity to 40 million. The new terminal will have 188 check-in counters, 10 baggage carousels and 52 passenger bridges. T2, which has been four years in the making, will initially open for international passengers only. Domestic passengers, now being served from the terminal at Santa Cruz, will move to the new building after a year. Once T2 is fully operational, the city will have an integrated terminal for domestic and international flights for the first time.
Mumbai airport is operated by a private company: Mumbai International Airport Ltd (MIAL), a joint venture (JV) between infrastructure company (GVK) (74%) and the Indian government-owned Airports Authority of India (26%). (MIAL) won the government bid to privatize Mumbai airport in 2006. The company had signed an agreement with the government to re-build the airport facilities, both on the air-side and the passenger side.
(GVK) operates one more airport in India in the southern city of Bangalore. The company is also developing a Greenfield Airport at Yogyakarta in Java and will manage commercial operations at Bali airport.
(CSIA) is hemmed in by the city on all sides and is among the most constrained airports in the world. The airport’s master plan has tried to improve efficiencies with more taxiways and quicker exits for airplanes landing on the two runways.
At the end of this month, USA officials downgraded India's aviation safety rating due to that country’s lack of compliance with international safety standards as established by the International Civil Aviation Organization (ICAO). The (FAA) said India has been assigned a Category 2 rating under its International Aviation Safety Assessment (IASA) program. India received the downgraded rating based on a recent reassessment of the country's Civil Aviation Authority (CAA). Although the (FAA) did not provide details on the downgrading, the lower rating means India's (CAA) now lacks the ability to meet (ICAO) standards in areas such as providing adequate manpower for inspections and safety checks on airplanes.
During a news briefing, India Aviation Minister, Ajit Singh called the downgrading "disappointing" and "surprising," stating that he believes "95% of all the issues raised have been solved."
"USA and Indian aviation officials have developed an important working relationship as our countries work to meet the challenges of ensuring international aviation safety. The (FAA) is available to work with the Directorate General of Civil Aviation to help India regain its Category 1 rating," said (FAA) Administrator, Michael Huerta.
With the downgraded rating, Indian carriers will not be able to increase their frequency of flights to the USA and will face extra inspection for current ones. State-run Air India (AIN) has 21 weekly flights to the USA, while Jet Airways (JPL) has seven.
The (FAA) originally identified issues with India's civil aviation oversight during its (IASA) assessment in September. Since then, the India Cabinet has hired 75 additional full-time Inspectors, but will need to take further action to address the (FAA)'s concerns.
March 2014: Jet Airways (JPL) informed that it has launched a new daily direct service from Hyderabad to Abu Dhabi. "This new flight will further strengthen (JPL)'s growing international network in the Gulf region, thus enhancing flight connectivity beyond Abu Dhabi to immediate Gulf countries and to destinations in North America and Europe," the company said in a release.
(JPL) currently operates a daily flight each from Delhi, Kochi and Chennai and 11 flights a week from Mumbai to Abu Dhabi. According to the airline, it will deploy Boeing 737-800 Next Generation (NG) airplanes on these routes.
April 2014: Etihad Airways (EHD) which acquired a 24% stake in Jet Airways (JPL) on April 23, 2013, has suspended its code-sharing agreement with (JPL). The dramatic move came after the USA (FAA) downgraded India to a Category 2 rating under its International Aviation Safety Assessment (IASA) program, based on a recent reassessment of the country's civil aviation authority (CAA). The decision, which took effect on February 1, puts India on the same level as Zimbabwe, Indonesia, and Bangladesh, among others.
As a result (JPL) and national flag carrier, Air India (AIN)/(IND) cannot now launch new services to the USA airports and they will be subject to increased safety checks. The (FAA) statement said it had determined "that India at this time is not in compliance with the international standards for aviation safety oversight." It stated that Indian air carriers had failed to fix previously raised safety concerns and had not appointed an adequate number of Flight Operations inspectors. Soon after the announcement, United Airlines (UAL) and American Airlines (AAL) also suspended their code sharing agreements with Jet Airways (JPL), as under USA law, USA carriers are not allowed to coordinate with Category 2 airlines.
May 2014: The Jet Airways group has reported a consolidated loss of -Rs 42 billion/-$689 million for the financial year April 2013 to March 2014, widened from -Rs 7.7 billion in the prior-year period. The highest-ever loss for India’s second-largest airline was on a total income of Rs 194.4 billion/$3.2 billion, which rose marginally from Rs 190 billion in the same period last year.
The Jet Airways (JPL) board met in Mumbai and agreed to a series of measures they hope will rebuild the business. The board announced the appointment of former Air Seychelles (ASY) (CEO), Cramer Ball as the new (CEO). Etihad Airways (EHD) President & (CEO), James Hogan, and (CFO), James Rigney, attended (JPL)’s board meeting for the first time after an equity deal between the two carriers received regulatory approvals.
(JPL) Chairman, Naresh Goyal said, “We need to take stringent measures to ensure our success in this challenging and competitive aviation industry. There can be no short-term solutions. The changes required will take time to implement.” (JPL) has established a task force to implement a major restructuring of the business.
Continuous losses for the last seven years, largely on (JPL)’s 737 domestic routes, have eroded its net worth substantially. Investors are hoping (EHD) will help recapitalize the airline. In a statement to the stock market, James Hogan said, “We are delighted to be investing in Jet Airways (JPL) at this critical point in its history. We are a long-term strategic investor and [are] committed to supporting (JPL) as it re-engineers its business to achieve sustainable profitability. The opportunities and benefits for both carriers are enormous.”
(EHD) has already invested $750 million in (JPL). The investment includes $380 million for a 24% equity stake, $70 million toward the purchase of three slots at London Heathrow Airport, $150 million to secure a 50.1% stake in the "JetPrivilege" frequent flyer program, and $150 million through (HSBC) Holdings.
Airline advisory firm, Seabury (APG) has completed a long-term network and fleet plan, which will be implemented to optimize (JPL)’s operations. The airline also announced it will standardize and reconfigure its Boeing 737 fleet and optimize seat count on the wide body Boeing 777 and Airbus A330 fleets.
The group, which has drawn criticism for operating with three brands (Jet Konnect, Jet Airways, and JetLite) said it will implement measures to separate the brands in the domestic market. (JPL) carried 20.53 million passengers in the financial year 2013 - 2014, slightly lower than <20.73 million in the year-ago period.
Indian carriers have been posting higher losses; growing discounting practices have put pressure on yields. Competition is likely to get tougher as two new airlines expect to launch in the next year.
Jet Airways (JPL) has introduced daily flights to Paris (CDG) from its main base at Mumbai (BOM). The 7,000 km route was launched on May 14th, initially operating four times weekly, though this will increase to daily from June 26th. Paris joins Brussels and London Heathrow as the only European destinations served by Jet Airways (JPL). (JPL) will utilize its A330-200s on the route, on which it will face competition from AirFrance (AFA), who also operate daily flights between the two airports. However, Jet Airways (JPL) recently announced that it had expanded its code share partnership with (AFA), thus offering enhanced connectivity between Europe and India via Paris. As per the expanded code share, both carriers will place their marketing codes on each other’s flights on the Mumbai - Paris trunk route. This will offer guests a choice of dual frequency as an additional schedule option, providing a morning and evening departure and arrival at both destinations. In addition to the code share on the trunk route, the expanded arrangement will offer guests connectivity via (AFA)’s hub in Paris to over >23 major cities across Europe, including points across Scandinavia and the Czech Republic. Domestic connectivity within France would also be enhanced to include cities like Nice, Lyon, Marseille, and Toulouse.
Jet Airways (JPL) is #1 for international seat capacity. Schedule data for June 2014 and June 2013 reveals that Jet Airways (JPL) is the leading airline across all Indian airports for international seat capacity, edging Air India (AIN) into second place - - SEE ATTACHED - - "JPL-2014-05 - INDIA TOP 15 INTERNATIONAL AIRLINES." However, if Air India (AIN) and Air India Express (AXB) are combined, then the Air India family of airlines would come top. The only other Indian carrier (shown in light green) in the top 15 is IndiGo (IGO) which has actually reduced its international seat capacity in the last 12 months, not by dropping any routes, but by reducing frequencies on three of its Dubai services.
India’s civil aviation regulator has asked Indian airlines to track all airplanes in real time. The Director General of Civil Aviation (DGCA) said the decision was prompted by the disappearance of Malaysia Airlines (MAS) Flight MH370, a Boeing 777-200 that vanished from radar March 8 during a routine flight from Kuala Lumpur to Beijing and with 239 people on board.
The regulator has ordered Indian carriers to track airplanes in real time using on onboard Aircraft Communications Addressing & Reporting System (ACARS) or Automatic Dependent Surveillance-Broadcast (ADS-B). Airlines have yet to respond to the regulator’s directive. Most airlines and private airplanes already have the systems on their airplanes.
The (DGCA) also said airlines should devise a procedure to track airplanes flying over areas not covered by (ACARS) or (ADS-B). It ordered flight crews (FC) report airplane coordinates, speed and altitude every 15 minutes while flying over such areas, a "Reuters" report said.
“While commercial air transport airplanes spend a considerable amount of time operating over remote areas, there is currently no international requirement for real time tracking of the airplanes,” the (DGCA) said.
June 2014: Etihad Airways (EHD) has extended its Jet Airways (JPL) code share and launched flights to Etihad Regional’s Zurich hub, while airberlin (BER) is adding Abu Dhabi from Stuttgart (its first long-haul link from the airport). After securing regulatory clearance, (EHD) and its equity partner Jet Airways (JPL) have added another 43 routes to their code share, taking the total number of destinations covered to 71. These include 31 domestic routes, operated by Jet Airways (JPL), marking the first time (EHD)’s code has been placed on flights within India.
In return, Jet Airways (JPL) has placed its code on +20% more (EHD) flights, including its services from Abu Dhabi to Chicago, New York, Dublin, and Milan. “This code share expansion is a milestone development for both airlines. In addition to placing our ‘EY’ code on domestic flights within India for the first time, the agreement now covers all six of (JPL)’s services to Abu Dhabi.”
Four domestic Indian carriers have objected to the Tata - Singapore Airlines (SIA) full-service airline venture, slated to launch at the end of this year. The four airlines (IndiGo (IGO), SpiceJet (ROJ), Go Air (GOZ) and Jet Airways (JPL)) which control three-fourths of the country’s airline market, have requested the yet-to-be named airline be denied permission to launch.
The carriers have written to the Directorate General of Civil Aviation (DGCA) under the banner of the Federation of Indian Airlines (FIA). They argue the amended foreign direct investment (FDI) rules, which allow foreign airlines to buy up to 49% equity in Indian carriers, were meant for existing carriers, not startups. Indian airline analysts say the carriers are trying a last ditch effort to protect their turf.
Tata - (SIA) Ltd is a joint venture (JV) between Indian conglomerate Tata Sons Ltd (with a 51% stake) and Singapore Airlines (sia) (49%). The airline has begun hiring this week. It plans to start with a fleet of five Airbus A320s and an initial investment of $100 million.
The airline’s board has cleared the appointment of Singapore Airlines (SIA)’s Phee Teik Yeoh as (CEO).
In February, the (FIA) tried to block AirAsia India (AAI), a new low-cost carrier (LCC) that launched this month. (AAI) is also a new company (a (JV) between the Tatas, Malaysia’s AirAsia Bhd and Arun Bhatia of Telestra Tradeplace.
The regulator dismissed the objections, saying the government made it clear the policy was meant for both existing and new airlines. In a move that will help the two new airlines, the Indian government has agreed in principle to scrap a rule requiring airlines to operate for five years or have a fleet of 20 airplanes before they are allowed to launch international flights.
The rule has prevented incumbent carriers from launching more lucrative, international operations. The Indian airline industry is in a crisis mode with most carriers reporting losses over the past four years.
August 2014: Jet Airways India Ltd (JPL), the Indian carrier 24% owned by Etihad Airways (EHD), will end its budget-airline units in an effort to turn its local operations profitable, Chairman, Naresh Goyal said. (JPL) will close its Jetlite (SAQ) and JetKonnect (SQH) businesses by the end of this year and fly all its planes under a single, full-service brand, Goyal told reporters in Mumbai. The move will help it achieve its target of making a profit by 2017, he said.
"We are in this to make money," (EHD) President, James Hogan said at the same event. (JPL)'s strategic location in South Asia puts it in a position to compete with Middle Eastern airlines on outbound traffic from India, one of the fastest growing aviation markets in the world.
India is one of the world's most expensive markets for airlines, and carriers have lost a combined -594 billion rupees/-US$9.7 billion over the past seven years, Sydney-based civil aviation think tank (CAPA) estimates. (JPL)'s decision to offer only full-service flights will pit it against state-owned Air India (AIN)/(IND) and a new venture from Tata Sons Ltd and Singapore Airlines Ltd (SIA) named "Vistara" that plans to start flying by October.
(JPL) is preparing to redesign its first (F) and business (C) class cabins to compete with Emirates Airline (EAD) and Singapore Airlines (SIA). In addition to changes to the cabin seats, (JPL) plans to lease Airbus A380s from (EHD), once the Abu Dhabi-based airline starts receiving the super-jumbo jets.
Jet (JPL)'s loss in the quarter ended June 30 narrowed to -2.18 billion rupees from -3.55 billion rupees in the year-ago period. The result was less than the loss of -3.24 billion rupees estimated by analysts. (JPL) hasn't reported a full-year profit since the year ended March 2008, according to data compiled by "Bloomberg."
(JPL) shares have fallen -16% this year, compared with the +21% increase in the benchmark (S&P) (BSE) Sensex Index. The stock gained +0.9% recently in Mumbai trading, before the release of the quarterly results.
Even as (JPL) focuses on the full-service customers, low-cost carriers (LCC)s are expanding in India. AirAsia (ASW) started Indian operations with (AAI) in June, offering base fares of less than <2 US cents, despite the poor track record of Indian discount carriers. Over the last seven years, airlines have lost an average -US$22 every time a passenger stepped on board, (CAPA) estimates.
Jet (JPL) and SpiceJet (ROJ) have posted annual losses, while Kingfisher Airlines (KFH), saddled with -US$1.4 billion of debt, has been grounded since 2012. Closely-held Indigo (IGO), the nation's biggest carrier, doesn't disclose its financial results.
INCDT: The specter of "sleeping pilots (FC)" is back to haunt Indian flyers. A Jet Airways (JPL) airplane winging its way from Mumbai to Brussels, suddenly dropped -5,000 feet in the Ankara airspace over Turkey. The commander of the Boeing 777 airplane was taking "controlled rest", which means a nap as per rules. The aviation regulator is now probing if the co-pilot too had dozed off.
The co-pilot, who was supposed to hold fort in the cockpit, claims she was busy on her tablet and did not notice that the airplane had lost altitude. It took a call from an alarmed Ankara (ATC), asking why Flight 9W-228 had moved away from its assigned flight level of 34,000 feet, for the situation to be rectified.
European (ATC)s in particular have become very particular about watching airplane sticking to their flight path in this extra-sensitive region. Other airplanes had been assigned the flight level at which (JPL)'s 777-300 had descended to.
The Directorate General of Civil Aviation (DGCA) got to know about this incident, when its joint Director General, Lalit Gupta got an anonymous (SMS) about the "level burst," or uncontrolled descent.
In its emergency communication, Ankara (ATC) asked the (JPL) airplane to immediately ascend to 32,000 feet, as this region's airspace has become very busy in recent days with airlines avoiding countries such as Iraq and Ukraine. The co-pilot (FC) immediately woke up the commander (FC) and he yoked the airplanet to 32,000 feet.
(JPL) confirmed the incident to Lalit Gupta, who is in charge of Flight Safety in the (DGCA). The (DGCA) summoned both the commander (FC) and the co-pilot (FC) to initiate a probe into what has been termed as a "serious incident." The two (FC) have been grounded pending investigation.
"The commander (FC) was taking a controlled rest, which means he was sleeping as per global airline norms, where pilots (FC) take rest in the cockpit by turn on long flights. The co-pilot (FC), who was supposed to ensure that the airplane flew steadily on its assigned path, told (DGCA) investigators that she was on her electronic flight bag (EFB) (a tablet that has all airplane documents loaded on to it). She did not realize that the 777 had dropped below its assigned level," said a source who spoke to the two pilots (FC).
The regulator is now probing how the airplane dropped 5,000 feet without the co-pilot (FC) realizing it. "Was some button pressed wrongly and what was the co-pilot (FC) doing (whether she was watching something on the tablet or she too had dozed off) needs to be probed," said a senior (DGCA) official.
(JPL) said it had initiated an internal inquiry into the matter. "The airline is also extending all cooperation to the (DGCA) by providing all necessary assistance for the inquiry. Safety is of paramount importance to Jet Airways (JPL), as is also the welfare of our guests and crew (FC), and the airline will always take appropriate steps to ensure the same," it said.
Following this case, the (DGCA) has decided to audit (JPL)'s training procedure for pilots (FC). "The pilots (FC) should have informed the airline and they in turn should have apprised the accident investigation board about this case. The captain (FC) did not file a report. The two pilots (FC) kept flying after this case. We got to know about it only from an anonymous complaint," said an official.
September 2014: Jet Airways (JPL) will increase its Mumbai - Dubai services from 4x- to 5x-daily on October 14, flying Boeing 737-800s.
Raj Sivakumar has been named as Jet Airways (JPL)'s new Chief Commercial Officer (CCO). Having joined the airline in August 2007, Raj previously spent 15 years with United Airlines (UAL).
(JPL) also welcomed Rajeev Nambiar as VP Sales (India) and its new Cargo VP, Martin Drew.
October 2014: Etihad Airways (EHD) has launched a new brand that envelops (EHD) and five of its partner airlines in a group that will synchronize schedules and frequent flyer benefits in a similar way to the three global alliances.
Etihad Airways Partners will initially include Etihad Airways (EHD), airberlin (BER), Air Serbia (JAT), Air Seychelles (ASY), India’s Jet Airways (JPL), and Darwin Airline, Etihad (EHD) announced Wednesday, October 8th.
(EHD) has equity stakes in each of these partner carriers. However, it said any airline can become an Etihad Airways Partner even if it is part of an existing alliance. Airberlin (BER) is a member of the Oneworld (ONW) Alliance.
The key emphasis for Etihad Airways Partners is a strong commercial partnership and shared values, (EHD) said. “We are broadening our business model to articulate and define a partner proposition for like-minded airlines, which will result in synergies and efficiencies for participating airlines on the one side, and enhanced network choice, service and frequent flyer benefits for the consumer on the other,” (EHD) President & (CEO), James Hogan said.
“The Etihad Airways Partners logo is a seal of excellence and global cooperation. It will be displayed on airplanes and on branded materials by a group of airlines working together to connect travelers around the world, and increasingly to harmonize standards in the air and on the ground.
“The potential for network alignment to maximize flight connectivity for passengers, together with a shared passion for superior service, are central to the ethos of the Etihad Airways Partner concept,” he said.
Benefits will include standardized mileage and tier benefits across all partners, no blackout periods and priority services.
Etihad Airways Partners will also have access to economies of scale and operational synergies such as centers of excellence, shared sales teams in certain destinations, joint procurement of services and supplies, and shared pilot (FC) and cabin crew (CA) training at the Etihad Airways (EHD) facilities in Abu Dhabi.
SEE ATTACHED PHOTO - - "JPL-2014-10 - ETIHAD AIRWAYS PARTNERS" which
shows L - R: Maurizio Merlo, (CEO), Darwin Airline; Wolfgang Prock-Schauer, (CEO), airberlin (BER); James Hogan, President & (CEO), Etihad Airways (EHD); Cramer Ball, (CEO) Jet Airways (JPL); Dane Kondic, (CEO) Air Serbia (JAT); and Manoj Papa, (CEO) Air Seychelles (ASY).
(EHD)’s objective with its new "Partners" initiative is not to compete with the three global alliances but to link members’ frequent flier programs, synchronize networks and see cost efficiencies, (EHD) President & (CEO) James Hogan said.
November 2014: News Item A-1: Struggling Jet Airways (JPL), one of India’s biggest airlines, reported a quarterly profit for the first time in two years, boosted by a one-off gain from the sale of a frequent-flyer scheme.
(JPL), in which expanding Gulf airline Etihad Airways (EHD) has bought a 24% stake, remained in the red when the sale proceeds were stripped out, but still improved its operating performance markedly.
(JPL) announced a +698-million-rupee/+$11.3 million net profit for the second-financial quarter to September, in contrast with a -8.9-billion-rupee net loss in the same year-ago period.
“I am extremely pleased by the progress,” (JPL) recently appointed (CEO), Cramer Ball, known as a turnaround specialist, said.
The publicly traded airline, which last reported a quarterly profit in 2012, has been seeking to pilot its way back to profitability in India’s congested skies.
While India’s passenger aviation market is one of the fastest-growing globally, cut-throat fare wars and too many carriers mean most of the country’s airlines are losing money, analysts say.
Stripping out the 3.05-billion-rupee earnings from the sale of its frequent flyer scheme, (JPL) lost -2.35-billion rupees, but this was still a vast improvement from (JPL)’s year-earlier loss.
Revenues climbed by -13.7% to 6.13 billion rupees, said the statement released after financial markets closed. “This (result) is in keeping with our three-year turnaround plan,” (JPL)'s (CEO) said.
Cramer in July forecast that (JPL) would return to annual profit in 2017 through cost-cuts, route-sharing with new partner Etihad (EHD) and restructuring hefty debt. “Restructuring initiatives with route and network rationalisation are already yielding dividends,” Cramer said of the quarterly results.
(JPL) is also phasing out chronically money-losing budget-flight operations by December to become a full-service airline.
Indian airlines’ bottom lines also will get some relief in months ahead from sharp reductions in jet-fuel prices, which account for as much as 40% of operating costs.
India cleared last May (EHD)’s purchase of the (JPL) stake for 21-billion rupees/$330-million.
Etihad (EHD) has spent over >$1 billion over the last two years buying stakes in ailing airlines in a global expansion drive, including the 49% acquisition of Italian flag-carrier Alitalia (ALI), now in its final regulatory approval stages.
(EHD)’s Jet (JPL) buy came after India relaxed foreign ownership rules to allow overseas carriers to purchase up to 49% of local airlines.
Deep-pocketed (EHD) is hoping to utilize (JPL)’s network as a springboard to earn money from rising passenger traffic from India to the Middle East and beyond.
(EHD) (CEO), James Hogan told a New Delhi business audience ahead of the earnings announcement, that the Jet (JPL) purchase was “a long-term investment. We knew it would be a long journey” winning regulatory clearance, Hogan said, due to infamous red-tape, India’s new government has promised to reduce, to spur a sputtering economy.
But now “I can tell our stakeholders… the investment is safe,” Hogan said.
News Item A-2: Jet Airways (JPL) launched two new international services this month. On November 5th, (JPL) began daily flights from Delhi (DEL) to Ho Chi Minh City (SGN) in Vietnam, its first service to that country. The 3,652 km route is operated by (JPL)’s 737-800s via Bangkok in both directions and faces no competition. Ho Chi Minh City thus becomes (JPL)’s 22nd international destination. On the same day (JPL) began a five times weekly service between Kochi (COK) and Dubai (DXB) also using 737-800s. The 2,784 km route is already served by Emirates (EAD) (twice-daily), Air India Express (daily), IndiGo (IGO) (daily), SpiceJet (ROJ) (daily) and flydubai (FDB) (thrice-weekly). Jet Airways (JPL)’s service frequency increases to daily from December 9th. It already serves Dubai from Mumbai (five daily flights), Delhi (two daily flights) and Mangalore (daily flights).
Jet Airways (JPL) has added two more links to Abu Dhabi (AUH), the home airport of its partner carrier, Etihad Airways (EHD). On November 14th, daily services were started on the 2,240 km route from Goa (GOI), and on the 2,643 km route from Lucknow (LKO). Both routes will be operated by (JPL)’s 737-800s and face no direct competition. (JPL) now serves Abu Dhabi from eight airports across India (Bengaluru, Chennai, Delhi, Goa, Hyderabad, Kochi, Lucknow, and Mumbai) all with at least daily flights. In addition, Etihad Airways (EHD) serves 10 airports across India (Ahmedabad, Bengaluru, Calicut, Chennai, Delhi, Hyderabad, Jaipur, Kochi, Mumbai, and Thiruvavanthapuram), with a total of 17 daily flights from its Abu Dhabi base.
(EHD) started its new non-stop daily service between Abu Dhabi (AUH) and San Francisco (SFO), (EHD)’s fifth destination in the USA on November 18th. The 13,124 km route is not actually operated with (EHD's own airplane, as it is flown by a Jet Airways (JPL) 312-seat 777-300ER instead. While there is no direct competition on the city pair, Emirates (EAD) does offer a daily connection to the Californian city from its Dubai hub.
February 2015: News Item A-1: Jet Airways (JPL) has posted a net profit of +$0.5 million in the third quarter of (FY) 2014 compared to a -$46 million loss a year ago, its first quarterly profit since 2012. (JPL) said the figures, for the quarter ended December 31, 2014, are evidence its turnaround plan is starting to show results.
Revenue for the quarter was up +9% at $875 million, compared to $807 million for the year-ago period.
Passenger numbers rose +10.4% to 5.8 million, with load factor up +5.2% to 82.1% LF. This improvement was the result of optimizing the network to have tighter domestic and international network integration, plus synergies with partner carriers, the carrier said.
Code share traffic (boosted by (JPL)’s new equity partnership with Etihad Airways (EHD)) jumped +93% to more than >314,000 in the third quarter of (FY) 2014.
“At the beginning of (FY) 2015, we outlined a three-year turnaround plan to get Jet Airways (JPL) back to profitability,” (CEO), Cramer Ball said. “Today, our business performance provides hard evidence that we are turning the business around and are on track to achieve our targets. It is pleasing to report that we have achieved significant growth in all the major key performance indicators (KPI)s in a very competitive environment.”
Further improvements could be expected in the next quarter, when the carrier expects to experience “the real impact of the lower fuel price.”
The cargo division was a strong contributor to Jet Airways (JPL)’s third-quarter (FY) 2014 results, (JPL) added. In line with the airline’s passenger “Guest First” strategy, (JPL) Cargo also refined its approach to customer interaction.
“This was an important quarter for us as we commenced the roll-out of our single-brand, full-service product on all flights across our domestic network. This step is a demonstration of our commitment to enhance our service and hospitality,” (JPL) said.
News Item A-2: Jet Airways (JPL) is planning to lease three A330-200Fs from equity partner Etihad Airways (EHD) ahead of its entry into the dedicated-freight market.
India's "Business Standard" newspaper said the A330-200Fs will allow (JPL) to take on rival Emirates (EAD) in the India - United Arab Emirates (UAE) cargo market.
(EHD) is currently leasing three 777-300ERs from (JPL) with a fourth due for delivery later this year.
News Item A-3: Jet Airways (JPL) currently operates 104 airplanes, to 19 countries, 72 destinations, on 199 routes, and 520 daily flights.
March 2015: News Item A-1: Jet Airways (JPL) has added non-stop flights from two more Indian airports to Doha (DOH) in Qatar. On Sunday March 15th the Etihad Airways (EHD) partner airline began 3x-weekly flights from both Kozhikode (CCJ) and Thiruvananthapuram (TRV). The former 3,005 km route will see (JPL) compete with Qatar Airways (QTA) (daily flights) and Air India Express (AXB) (2x-weekly flights), while the latter 3,264 km route will face competition from just Qatar Airways (QTA) (daily flights). According to a Jet Airways press release from last September, both of these routes were supposed to start on December 1st 2014 and be operated on a daily basis using 737-800s on both routes. In fact, both routes will increase in frequency to daily flights from May 31st 2015. (JPL) already operates daily flights to Doha from Delhi and Kochi, as well as twice-daily flights from Mumbai. Jet Airways (JPL)’s only other international service from Kozhikode, is to Dammam in Saudi Arabia, while from Thiruvananthapuram, (JPL) serves Dammam and Muscat in Oman.
News Item A-2: Trouble is brewing again in private carrier Jet Airways (JPL) as some of its subsidiary airline JetLite (SAQ)'s pilots (FC) have quit, serving notice to the management alleging change in service conditions.
JetLite (SAQ) was originally Air Sahara before being acquired by Jet Airways (JPL) promoter, Naresh Goyal in 2007 and operated as a budget arm till November last year. But in December, the two carriers were integrated into one to operate under one single full-service brand.
"Some JetLite (SAQ) pilots (FC) have recently quit the airline and have sent a notice to the management after their service conditions were arbitrarily changed in the wake of the merger," Jet Airways (JPL) sources told "PTI" here.
These pilots (FC) have demanded that they should be relieved from job immediately as the six-month mandatory notice period was no longer applicable on them, the sources said.
As per Directorate General of Civil Aviation (DGCA) norms, a pilot (FC) has to serve his employer for six months after putting in papers.
However, the (JPL) sources said the situation in the airline is somewhat similar to Air India (AIN)/(IND), which is fighting a legal battle with its pilots (FC) over integration issues.
"The management has altered the service conditions on its own, which is a violation of the contract rules. Therefore, the mandatory notice period norm does not apply in such case," they said.
A Jet Airways (JPL) spokesperson confirmed the development but refused to share details. "We do not wish to comment on the details as it is an internal matter," the spokesperson said in an e-mail statement to (PTI).
As part of integration, the Jet Airways (JPL) management had given JetLite (SAQ) pilots (FC) an option to join the parent brand with certain riders like a common seniority and posting to any location in the country.
April 2015: News Item A-1: The (FAA) has restored India’s aviation safety rating to Category 1 under its International Aviation Safety Assessment (IASA) program. The (FAA) had downgraded India to Category 2 in January 2014.
The upgraded rating means India complies with international safety standards set by (ICAO).
USA Transportation Secretary, Anthony Foxx said, “USA and Indian aviation officials have an important, cooperative working relationship. The United States government commends the government of India for taking corrective action to address the safety oversight issues identified during the (IASA) process.”
A Category 1 rating means that the country’s civil aviation authority complies with (ICAO) standards and permits India’s air carriers to add flights to the USA using their own airplanes and carry the code of USA carriers on their operations.
India first achieved a Category 1 rating in August 1997. A December 2012 (FAA) audit identified some deficiencies in the (DGCA) from (ICAO)-set global standards for oversight of aviation safety, which led to a Category 2 designation. Subsequently, the (FAA) began a reassessment of India’s compliance with (ICAO) standards under the (FAA)’s (IASA) program.
May 2015: Bangkok Airways (PGB) and Jet Airways (JPL) are to offer code share flights between Bangkok and Mumbai from May 4. The agreement brings Bangkok Airways (PGB)’s code share tally to 17 airlines.
July 2015: As many as 111 passengers on board a Jet Airways (JPL) flight from Leh to Delhi had to face breathing problem momentarily, as the pilots (FC) allegedly failed to switch on the auxiliary power unit (APU), which led to drop in cabin pressure, "Press Trust of India (PTI)" reported.
(JPL) had grounded the commander (FC) and the first officer (FC) who was operating the flight, till a probe by the Directorate General of Civil Aviation (DGCA) was over, sources said, adding that acting tough, the civil aviation regulator had withdrawn the traineeship of the commander (FC).
The incident took place on July 7, when (JPL) flight 9W-2369 from Leh was getting ready to depart for Delhi.
The pilots (FC) allegedly forgot to switch on the (APU), which is mandatory for flights operating from Leh, resulting in sudden drop in cabin air pressure which led to deployment of oxygen masks for the passengers, they said.
When contacted, a (JPL) spokesperson confirmed the grounding of the two pilots (FC) but did not comment on the (DGCA) action against the commander (FC). "The matter is currently under (DGCA) investigation. As per standard procedure, the crew (FC) (does not undertake flying duties) to facilitate the investigation," the spokesperson said.
Sources also said all passengers had been boarded again as the oxygen masks were deployed and another airplane was dispatched from Delhi to Leh to fly them back.
An (APU) is used to run accessories while the plane's engines are shut down.
It allows the cabin to remain comfortable while the passengers are boarding before engines of the airplane are started. (APU)s fitted in an Extended-range Twin-engine OPerationS (ETOPS) airplane are a critical safety device, as they supply backup electricity and compressed air in place of the dead engine or failed main engine generator.
It is regulatory requirement for an airplane to have a functional (APU) while operating flight to Leh, and it has to be kept on while on the ground and taking off from this high altitude airport, a pilot (FC) said.
August 2015: News Item A-1: Jet Airways (JPL) posted net profit of +$34.7 million in the first quarter of its 2016 financial year, reversed from net loss of -$39.5 million in the year-ago period. (JPL) said the continued improvement showed its three-year turnaround program with equity partner, Etihad Airways (EHD) was gaining momentum.
Revenue for the period was up +11% to $867 million. Passenger numbers rose +21.3% year-over-year to 6.29 million. Load factor was up +2.2 points at 82.4% LF.
News Item A-2: "Etihad Airways (EHD) Investment in Jet Airways (JPL) has Generated Benefits for Both Carriers" by (ATW) Anne Paylor, August 18, 2015.
Etihad Airways (EHD)’s strategic investment in India’s Jet Airways (JPL) is delivering “strong results for both airlines,” the two carriers said. Since (EHD) took a 24% stake in (JPL) in November 2013, improvements have been achieved in the areas of network growth, revenue enhancement, and operational plus cost rationalization.
The two airlines said they now offer more flights to and from India than any other airline, boasting a 21% share of the country’s international air travel market, and increasing from nine to 15 the number of direct routes between India and Abu Dhabi.
(JPL)’s Chairman, Naresh Goyal said: “Our strategic collaboration with (EHD) includes network integration, joint sales effort, sharing of resources, collaborated procurement, and knowledge transfer. All of these have enabled us to leverage cost advantages and economies of scale to the eventual benefit of our guests, as well as our employees. The benefits of our alliance with (EHD) will continue to emerge, highlighting the significance of this strategic relationship. We will continue to work toward building a stronger base for the future by taking decisions that are in the long term interest of all our shareholders.”
A code share partnership between the two airlines means the (JPL)'s 9W code is now included on (EHD) flights to 33 destinations, with (EHD)’s EY code included on 60 predominantly domestic (JPL) routes. In the first six months of 2015, (EHD) transferred more than >235,000 guests onto (JPL)’s network into India, with (JPL) transferring 182,000 guests onto the (EHD) network.
The airlines have also aligned their schedules between Abu Dhabi and India to improve flight connectivity between their networks.
(EHD) President & (CEO), James Hogan said: “Before our equity deal with (JPL), we had 2% of the international traffic out of India. Today, with Jet Airways (jpl), we have 21% of the market, and combined, we are the dominant carriers out of India. (JPL) is now our number one equity partner for revenue and passenger contribution on (EHD). India is now Abu Dhabi’s number one source market for international visitors.”
He said that as an active investor and a strategic partner, (EHD) had “provided fresh capital and financial stability for (JPL), assisted global network growth, increased flight connectivity, and delivered efficiencies through activities including joint procurement and resource sharing.” He acknowledged there are “still many challenges to tackle, but also exciting opportunities ahead. Our partnership strategy has provided value to (JPL) in excess of >$2.5 billion, and is delivering lower operating costs and greater efficiency for our two airlines, and contributing strongly to the Indian economy.”
(JPL) saw a sharp rise in (EHD) code share traffic, which rose +51% to 487,921 passengers.
Average airplane utilization grew to 12.7 hours compared to 11.4 hours in (Q1) (FY) 2015, which (JPL) said was among the highest utilization for Boeing 737s in the world. “Our performance in the first quarter of this financial year demonstrates once again that the measures we are taking to bring the business back to profitability are having the desired result,” Jet Airways (JPL) Chairman, Naresh Goyal said. “All the major key performance indicators have shown progress, as we continue to focus on customer satisfaction, network enhancement and improvement through efficiency.”
Other factors that contributed to the turnaround were reaping the synergies with partner carriers; implementing a consistent, full-service, single-brand strategy across its domestic operation; and focusing on premium traffic. “Despite the increasingly competitive domestic landscape driven by aggressive new market entrants, our market share in India went up by +1.1% to 21.9%,” (CEO) Cramer Ball said. “This means that one in every five domestic passengers flew on Jet Airways (JPL).”
(JPL) also recorded +12.4% growth in international passenger traffic during the first quarter. There was a +51% growth in overall code share traffic during the quarter, while code share traffic by strategic partner Etihad Airways (EHD) and its partner airlines grew +181%.
Ball cautioned: “The competitive and structural challenges in the Indian aviation market continue to put pressure on our yields and costs. In addressing these, we continue to focus on leveraging the commercial and operational synergies through our partnership with (EHD).”
(JPL)’s equity relationship with Etihad Airways (EHD) and its partner airlines also enabled it to make significant savings and synergies through areas such as through joint maintenance and ground handling facilities, cabin crew training and common procurement of aircraft, fuel and insurance.
Since (EHD)’s 24% investment in Jet Airways (JPL) was finalized in November 2013, the two carriers have increased the number of direct routes between India and Abu Dhabi from nine to 15, introduced wide body aircraft on key routes, and increased to multiple daily flights in some markets.
September 2015: News Item A-1: Technology specialist (WIN) is expanding its e-booking system to connect independent forwarders to 16 airlines. (WIN) already connects to over 90 airlines for electronic Air Waybill (e-AWB). The carriers available for e-bookings include British Airways (BAB), Iberia (IBE), Etihad Airways (EHD), (SAS), Singapore Airlines (SIA), Jet Airways (JPL), Swiss (CSR), American Airlines (AAL), Air France (AFA), Finnair (FIN), Korean Air (KAL), (KLM), Lufthansa (DLH), United Airlines (UAL), Emirates (EAD), and Gulf Air (GUL). The all-in-one tool includes the ability for customers to look up flight schedules, create and manage bookings in real-time, transmit (e-AWB) data, and receive full (e-AWB) tracking automatically.
November 2015: News Item A-1: "Boeing (TBC) and Jet Airways (JPL) Confirm Order for 75 737 MAX 8 Airplanes" by (ATW) Rob Vogelaar, November 9, 2015.
Boeing (TBC) and Jet Airways (JPL), India’s premier international airline, announced an order for 75 737 MAX 8 airplanes at the 2015 Dubai Airshow today.
The announcement marks the largest order in (JPL)’ history and supports (JPL)’s replacement strategy to have the most modern and environmentally progressive airplane fleet. The order, previously attributed to an unidentified customer, includes conversions of 25 Next-Generation 737s to 737 MAX 8s, as well as options and purchase rights for an additional 50 airplanes.
“Incorporating the latest design and technology features, the highly efficient 737 MAX will allow us to drive our operational efficiency and reaffirms our commitment to providing a best-in-class full service travel experience to our guests,” said Naresh Goyal, Chairman of (JPL). “This order is an endorsement of our confidence in the long-term prospects of the Indian aviation sector, which reflects the positive forecast for the country’s economy and offers tremendous potential for growth and development.”
The 737 MAX incorporates the latest technology (CFM) International (LEAP-1B) engines, Advanced Technology winglets and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market.
The new single-aisle airplane will deliver -20% lower fuel use than the 1st Next-Generation 737s and the lowest operating costs in its class –8% per seat less than its nearest competitor.
News Item A-2: "Aviation Ministry Relaxes Norms for Aircraft Import"
by Lalatendu Mishra, "The Hindu" November 28, 2015
Further simplifying the procedures and making it easier for the procurement of aircraft by airlines, the Ministry of Civil Aviation has delegated the power to grant initial No Objection Certificate (NOC) or in-principle approval for import or acquisition of aircraft to the Directorate General of Civil Aviation (DGCA).
This comes after the Reserve Bank of India (RBI) relaxed norms for remittances of money for import of aircraft, and other aviation related purchases by airlines.
The Ministry of Civil Aviation announced these changes through a circular issued on November 28. As per the existing procedure, Scheduled Operators (airlines) and Regional Scheduled Operators have to seek approval from the Ministry for Import of Aircraft. "The delegation of power is being done in order to simplify procedures as compliance of various Civil Aviation Requirements (CAR) are regulated by the (DGCA)," the Ministry said.
The (DGCA) has been asked to make necessary amendment in the related (CAR)/Rules in accordance with the changes. After the changes are effected by the (DGCA), "the Scheduled Operators/Regional Scheduled Operators need not approach the Ministry of Civil Aviation for initial (NOC)/In-principle approval for import/acquisition of aircraft."
Earlier, the Ministry had asked the Director General of Foreign Trade (DGFT) and the (RBI) to amend their existing notification and master circular respectively to relax the norms for aircraft import.
Responding to this, the (RBI) on November 26, 2015 issued a circular allowing banks to advance remittances of up to US$50 million for import of aircraft, once airline companies receive approval from the (DGCA). Earlier, for remittance of funds, the approval of the ministry was mandatory.
In early October, the (DGFT) had carried out the requisite amendments in its rules governing aircraft imports. Several airlines had voiced their concern over the delay in approvals, which had affected their aircraft induction, fleet expansion and replacement plans.
December 2015: News Item A-1: SkyTeam (STM) alliance partners Delta Air Lines (DAL) and (KLM) Royal Dutch Airlines are launching a new code share program with Jet Airways (JPL), the Indian airline that is 24% owned by Gulf carrier, Etihad Airways (EHD).
News Item A-2: "Jet Airways Closes Brussels Hub, Transfers to Amsterdam" by (ATW) Kurt Hofmann, December 22, 2015.
Jet Airways (JPL), which recently announced a strategic code share program with SkyTeam (STM) alliance partners, Delta Air Lines (DAL) and (KLM) Royal Dutch Airlines, will close its hub in Brussels and move to Amsterdam Schiphol.
(JPL) has used Brussels Zaventem airport as a hub to connect destinations in India, the USA and Canada with its own aircraft since 2007. With the recently announced cooperation, Amsterdam will become the carrier’s new European gateway.
Jet Airways (JPL) will operate 2x-daily nonstop flights from Mumbai and New Delhi to Amsterdam Airport Schiphol. It will also operate daily Airbus A330-300 service from Toronto to Amsterdam.
Effective March 27, 2016, the partnership covers (KLM) and (DAL) flights to Amsterdam Schiphol originating in the USA and Europe. Travelers on those flights will be able to connect to (JPL) flights to New Delhi and Mumbai through the code share. (JPL) subsequently will place its code on several North American and European flights.
Brussels Airlines (DAT)/(EBA) has confirmed it also plans to launch its own Brussels to Toronto Airbus A330 services next spring.
Jet Airways (JPL) is 24% owned by Etihad Airways (EHD).
(EHD) and (KLM) have been code share partners since 2012. The code share agreement is subject to government approvals.
February 2016: News Item A-1: Global Eagle Entertainment and Jet Airways (JPL) are collaborating on a new in-flight entertainment streaming service that enables wireless streaming of movies, TV programs, a wide genre of music, interactive games, and children’s programs directly onto guests’ Wi-Fi enabled personal devices such as smartphones, tablets and laptops on Jet Airways (JPL) flights. The streaming service will be introduced on the Boeing 737 Next Generation airplanes in the (JPL) fleet starting from the 2nd quarter of 2016.
News Item A-2: Jet Airways (JPL) has selected Global Eagle Entertainment (GEE) for (IFE) Streaming Service, (GEE)’s 1st connectivity win in India. And (GEE)’s latest retrofit program is now underway at flydubai (FDB) with a full connectivity suite that interfaces with the Lumexis (IFE) hardware.
March 2016: News Item A-1: Jet Airways (JPL), which recently announced a strategic code share with SkyTeam (STM) Alliance partners Delta Air Lines (DAL) and (KLM) Royal Dutch Airlines, confirmed it will close its Brussels hub and move to Amsterdam Schiphol.
News Item A-2: Honeywell Aerospace (SGC) has been selected by Jet Airways (JPL) to provide maintenance for Auxiliary Power Units (APU)s on board 10 Boeing 777s airplanes for 5 years. The agreement is an extension of (JPL)’s comprehensive (APU) maintenance programs already in place for 737NGs and Airbus A330s.
April 2016: Jet Airways (JPL) has called an extraordinary general meeting (EGM) with its shareholders and creditors to approve its proposed merger with its JetLite (SAQ) subsidiary.
In a filing with the Bombay Stock Exchange (BSE), (JPL) said the (EGM) had been scheduled for April 22 following approval from the Mumbai High Court.
Last year, (JPL)'s board agreed to go ahead with the move which, despite the merger of their financials, will see both carriers continuing to operate under their own respective Air Operators Permits (AOP). Jet Airways (JPL) said the merger will result in better cost efficiencies.
JetLite (SAQ) was formed when (JPL) successfully acquired Air Sahara ((IATA) Code: S2, based at Delhi International) for USD340 million in 2007. It operated as a budget carrier until December 2014 when Jet Airways (JPL) repositioned it as a uniform, full service airline across all platforms.
Currently, JetLite (SAQ) operates 3 737-700s and 5 737-800s on flights to 32 destinations across India.
June 2016: "India Allows Airlines to Import Up to 18-Year-Old Planes"
by (PTI), June 26, 2016.
Domestic airlines can now import aircraft that are up to 18 years old into the country with the government amending >2-decade old rules in this regard.
The move is expected to provide a fillip for the government's ambitious efforts to boost regional air connectivity as it gives more leeway for operators in expanding their fleet.
Till now, aircraft that are >15 years old were not allowed to be imported. As part of larger efforts to improve the ease of doing business in the domestic aviation sector, which has huge growth potential, the Directorate General of Civil Aviation (DGCA) has made changes to rules that had come into effect way back in July 1993.
With the revised norms, pressurised aircraft that are not >18 years old or those which have not completed 50% of design economic pressurisation cycle, can be imported.
A pressurised aircraft is 1 which is equipped to handle cabin pressure at an altitude of >10,000 feet. Such planes should not have completed "15 years of age or 75% of design economic life or 45,000 pressurization cycle."
The regulations would be applicable for entities having scheduled, non-scheduled and general aviation operations. "Considering that modern commercial air transport jet aircraft are significant economic assets that can have an effective economic useful life of decades, the restriction imposed on import of aged aircraft is cautiously revised," the latest Civil Aviation Requirements (CAR) signed by (DGCA) Chief M Sathiyavathy said.
In this regard, changes have been made in the relevant norms or Civil Aviation Requirements (CAR) effective from June 17. "Aircraft intended to be imported for air cargo operations shall not have completed 25 years in age or 75% of its design economic cycles or 45,000 landing cycles," it noted.
The regulator also said that studies were conducted by international aviation community on the correlation between fatal accidents and age of the aircraft. "Such studies have not clearly established that there is a correlation between accident rate and aircraft age up till 18 years," it added.
With respect to unpressurised aircraft, the decision would be taken on a case to case basis after examining the record of the plane that is to be procured from overseas. "However, the (DGCA) would normally not allow such aircraft which are >20 years old," it said.
The watchdog noted that aircraft intended to be imported and used for scheduled commercial operations should have their design economic calendar and operational life clearly established by the holder of type certificate, among other requirements. "It must be appreciated that normally manufacturers of jet aircraft prescribed a design economic life for their aircraft which extend to 20 years or 60,000 landings/pressurization cycles," the (DGCA) said.
According to the regulator, the minimum standard for aircraft life is set to ensure that the plane does not have problems such as corrosion, fatigue, and cracks in areas which are normally not accessible during even major checks.
Generally, manufacturers indicate a design-economic life in terms of years and pressurisation cycles for jet aircraft in order to keep a tab on age-related problems of the plane.
October 2016: "Etihad, Jet Airways Boost Abu Dhabi - India Network"
by (ATW) Kurt Hofmann email@example.com, October 28, 2016.
Abu Dhabi-based Etihad Airways (EHD) and Indian equity partner Jet Airways (JPL) plans to boost its network between Abu Dhabi, United Arab Emirates (UAE) and India, subject to government approval. The 2 carriers want to add 28x-weekly (including 3 new destinations) that will increase the network to 18 cities.
Both carriers said the additional frequencies will strengthen their partnership in one of the world’s fastest-growing aviation markets.
(EHD) currently operates 175x-weekly flights between Abu Dhabi and 11 Indian cities. Together, (EHD) and (JPL) offer 252x-weekly flights between Abu Dhabi and 15 cities across India. With the newly announced flights, the cooperative services will cover 18 Indian cities with 280x-weekly.
(EHD) plans to launch a 4th daily Abu Dhabi to Kozhikode flight on March 26, 2017. Daily Abu Dhabi to Ahmedabad services will become 2x-daily, starting February 1.
Jet Airways (JPL) plans to launch daily Tiruchirappalli (Trichy) to Abu Dhabi flights from February 1, 2017. Daily Kannur to Abu Dhabi and Chandigarh to Abu Dhabi services will begin in the 2nd half of 2017, subject to the completion of operational readiness at these airports.
Starting January 15, 2017, (JPL) will introduce a 2nd daily service between New Delhi and Abu Dhabi. (EHD) already operates 3 flights a day between the 2 capitals.
In 2015, (EHD) and (JPL) together carried 3.3 million passengers between Abu Dhabi and India (a +63% increase over the 2 million passengers flown in 2014. The combined operation enjoys the biggest share of passenger traffic to and from India, 1 of the world’s biggest economies.
Etihad Aviation Group President & (CEO) James Hogan said: “Our partnership with Jet Airways (JPL) has gone from strength to strength. Sharing resources and reaching decisions together are key to our success. Jet Airways (JPL) is Etihad Airways (EHD)’s leading equity partner in terms of revenue and passenger contribution.”
(EHD) contributed 717,966 passengers to (JPL)’s flights for the 12 months to August 2016, a +57% increase on the same period last year. Conversely, Jet Airways (JPL) contributed 396,288 guests to Etihad (EHD)'s flights over the same period, a +33% increase on the corresponding period last year.
December 2016: INCDT: A Jet Airways (JPL) Boeing 737 was seriously damaged and there were reports of passenger injuries after the 737 left the runway as it prepared for take-off from Dabolim Airport in Goa, India, on December 27.
There was no statement from (JPL), but the (BBC) reported there were 154 passengers onboard and at least 12 were hurt, although none of the injuries appeared to be life threatening.
The 737’s wing and front landing gear appeared to have been damaged.
Jet Airways (JPL) operates 114 aircraft, comprising Airbus A330s, ATR 72-500/ATR 72-600s, and Boeing 737s and 777-300ERs.
(JPL) is an Etihad Airways (EHD) Partners airline and is in fast-growth mode; it is India’s 2nd largest carrier.
May 2017: In India, Jet Airways (JPL) is getting ready for the summer with new domestic routes and frequencies. 1 feature of its latest schedule update is an increase in connections between dots already on its route map. It also includes additional frequencies on several sectors, i.e., a 4th daily Delhi to Ameristar and an 8th daily Mumbai to Kolkata. And more domestic routes will see wide bodies, i.e., A330s on Delhi to Bangalore.
June 2017: Aeromexico (AMX) and India’s Jet Airways (JPL) have signed a memorandum of understanding (MOU) to start code sharing and allowing passengers to gain reciprocal frequent flier benefits. The (MOU) was signed by (AMX) (CEO) Andrés Conesa and (JPL) Chairman Naresh Goyal this month at the (IATA) (AGM) in Cancun, Mexico. The (MOU) calls for code sharing on flights from major European airports that both carriers serve.
(AMX) initially will place its code on (JPL)’s London Heathrow (LHR) to Mumbai and (LHR) to Delhi flights. (JPL) will initially place its code on Aeromexico (AMX)’s (LHR) to Mexico City flights.
The code sharing will begin later this year subject to government approvals, the airlines said in a joint statement. “This achievement is a manifest of our will to continuously offer new flight destinations to our passengers,” Conesa said. Goyal added, “We are confident that this new code share partnership will stimulate the demand for business and tourist travel between India and Mexico.”
October 2017: News Item A-1: "Air France Continues Long-haul Drive with Vietnam Airlines Joint Venture" by "Reuters," October 10, 2017.
Air France (AFA) signed a new joint venture (JV) deal with Vietnam Airlines (VIE) and said it was in advanced talks with India's Jet Airways (JPL) over a partnership as part of efforts to boost its long-haul network.
The (JV) with (VIE), due to start from November depending on approval from authorities, builds on code shares that have been in place since 2010 and will see the 2 airlines coordinating their flight schedules to offer customers better connecting flights.
(AFA) is also looking at working more closely with Indian carrier Jet Airways (JPL), with which it has had a code share since 2016. "We are in advanced talks with (JPL) to see how we can strengthen our co-operation," (AFA) (CEO) Franck Terner told "Reuters."
Parent company (AFA) - (KLM) is currently seeking ways to boost its position on long-haul markets and compete against Gulf carriers.
It is launching a new budget brand, "Joon," to fly short and long-haul routes and in July rejigged its North Atlantic alliance in a 3 way deal with Delta (DAL) and Virgin Atlantic (VAA).
As part of that shake-up, (DAL) and China Eastern (CEA) have each taken a 10% stake apiece in the Franco-Dutch airline. "There is still pressure on prices on routes heading east," Terner said. "The joint venture with Vietnam Airlines (VIE) will help us to strengthen our position and better mitigate this pressure on prices."
Terner said a similar stake deal to that signed with (DAL) and (CEA) was not planned with (VIE) or (JPL).
(VIE) said it hoped the (AFA) (JV) would lead to similar partnerships with other airlines in the Skyteam (STM) Alliance and with Japan's (ANA) (9202.T), which bought an 8.8% stake in the carrier last year.
"This is a model that when established will help (VIE) soon have similar contracts in the Asia region, hopefully including the USA as well," (VIE)'s (CEO) Duong Tri Thanh told reporters.
(AFA) and (VIE) did not provide further details on the revenue sharing arrangements.
News Item A-2: "India's Jet Airways Confirms Order for 75 Boeing Airplanes" by Tommy Wilkes, "Reuters" October 11, 2017.
Jet Airways (JPL) said on October 11 it had agreed to buy 75 Boeing 737 Max airplanes, and that it could purchase another 75 to help it expand in a booming Indian market.
(JPL) said that deliveries of the single aisle jets are expected to start in mid-2018 and a decision on adding an equal number of narrow body airplanesa "will be made over the coming few months".
An order for 75 737 MAX 10 jets would be worth as much as US$9.3 billion based on list prices, although airlines typically get discounts for large orders.
"Reuters" reported in June that (JPL), which is part owned by Abu Dhabi's Etihad Airways (EHD), was in talks to buy either Boeing's 737 MAX planes or aircraft from Airbus's A320neo family.
Airlines in India have hundreds of airplanes on order as they look to tap into a market growing by nearly 20% a year thanks to rising incomes and low cost fares.
Jet Airways (JPL) has the 2nd largest market share in India behind InterGlobe Aviation's IndiGo (IGO).
Click below for photos:
JPL-737 MAX 8 - 2015-11.jpg
JPL-737-800 - 2013-11
JPL-737-85R - 2014-05
JPL-747-8I - 2013-11
JPL-777 - 2013-01
JPL-777-300ER - 2013-08
JPL-777-300ER - 2016-02.jpg
JPL-A330-200 - 2015-02.jpg
JPL-A330-300 - 2015-08.jpg
JPL-ATR72-600 - 2012-10
0 737-33A (CFM56-3C1) (24096; 24097) (24791 TO (RSE) 1999-06), (AWW) LSD, EX-(VSP), RTND, LST (AKN).
0 737-4Y0 (CFM56-3) (24345), RTND (GEH) 2000-04.
0 737-4H6 (CFM56-3C1) (2426-27086, /93 VT-JAE; 2435-27168, /93 VT-JAF), ANZEF LSD, RTND, LST (SNU) 2003-07. 24C, 112Y.
0 737-45R (CFM56-3C1) (2943-29032, /97 VT-JAR; 2963-29033, /97 VT-JAS; 3015-29034, /98 VT-JAT; 3046-29035, VT-JBA, 2004-01), RTND. 24C, 112Y.
0 737-48E (CFM56-3C1) (2905-25773, /97 VT-JAM; 2925-25775, /97 VT-JAN), (SNR) LSD. RTND. 24C, 112Y.
0 737-5H6 (CFM56-3) (2646-27355), EX-(MAS), RTND (GEH), LST (BAB) 2000-04.
0 737-5Y0 (CFM56-3) (2260-25191, /92 VT-JAL), 1996-11, RTND (GUI) 2000-12, LST (ROS), 104 PAX, 2 CLASS .
2 737-71Q (CFM56-7B22) (138-29043, /98 VT-JNE; 152-29044, /98 VT-JNF; 169-29045, /98 VT-JNG; 181-29046, /99 VT-JNH), (TOM) LSD, 29043; & 29044; RTND. 16C, 96Y.
1 737-73A (CFM56-7B22) (775-28498, /01 VT-JNS), (AWW) LSD 2001-03, 16C, 96Y.
2 737-75R (CFM56-7B22) (835-30404, /01 VT-JNU; 927-30405, /01 VT-JNV; 1016-30406, /01 VT-JNW; 1282-30411, /03 VT-JGB), NORTH AMERICAN LSD. WITH WINGLETS. 30404; & 30405; OPS FOR JET AIRWAYS KONNECT. 16C, 96Y.
2 737-75R (CFM56-7B22) (835-30404, /01 VT-JNU; 927-30405, /01 JT-JNV), NORTH AMERICAN LSD. OPS FOR JET AIRWAYS KONNECT. 144Y.
2 737-75R (CFM56-7B22) (2360-34805, VT-JGX, 2007-08; 2404-34806, VT-JGY, 2007-10), WITH WINGLETS. 16C, 96Y.
2 737-76N (CFM56-7B22) (664-28630, /00 VT-JNP; 734-28635, /00 VT-JNQ; 417-28609, /99 VT-JNT; 1392-32738, VT-JGL, 2005-09; 2342-35218, VT-JGZ, 2007-08), (GEF) LSD 7 YRS. 28609; 28630; & 28635; RTND. WITH WINGLETS. 20C, 102Y.
0 737-76Q (CFM56-7B) (1010-30279, VT-JNY; 1025-30280, VT-JNZ), (BOU) LSD, NTU.
1 737-8AL (CFM56-7B) (37960, VT-JBW, 2011-10; 39063, VT-JFQ, 2013-12), (SIL) LSD. 24C, 120Y.
2 737-8AL (CFM56-7B) (39059, VT-JFJ, 2013-06; 39060, VT-JFK, 2013-07), MC AVIATION PARTNERS LSD. 24C, 120Y.
0 737-8BK (CFM56-7B26) (1688-33024, /05 VT-JBT), (TCI) LSD 2010-07. RTND & LST (NIU) 2013-07. WITH WINGLETS. 24C, 120Y.
2 737-8FH (CFM56-7B26) (1643-29639, /05 VT-JGF; 1686-29668, /05 VT-JGG), RBS AEROSPACE LSD 2005-04. WITH WINGLETS. 24C, 120Y.
1 737-8HX (CFM56-7B) (2388-36847, /07 VT-JBC), AV CAPITAL GRP (CGP) LSD. WITH WINGLETS. 24C, 120Y.
15/10 ORDERS (2012-10) 737-800 (CFM56-7B), 24C, 120Y:
1 737-83N (CFM56-7B27) (1002-32579, /01 VT-JGK), (GEF) LSD 2005-04. WITH WINGLETS. 24C, 120Y.
4 737-83N (CFM56-7B27) (973-32577, /01 VT-JGH; 998-32578, /01 VT-JGJ; 1201-32614, /02 VT-JGM; 1212-32616, /02 VT-JGN), WITH WINGLETS. 175Y.
1 737-85R (CFM56-7B24) (1608-32663, /04 VT-JGE), (GEF) LSD 2004-11. WITH WINGLETS. 24C, 120Y.
3 737-85R (CFM56-7B24) (164-29036, /98 VT-JNC; 177-29037, /98 VT-JND; 297-29038, /99 VT-JNJ; 326-29039, /99 VT-JNL; 465-29040, /00 VT-JNM; 489-29041, /00 VT-JNN). 29036; 29037; RTT AIRCASTLE, LST (ORB) 2009-08. 24C, 120Y.
21 +6 ORDERS 737-85R (CFM56-7B24) (749-30403, /01 VT-JNR; 1073-30407, /02 VT-JNX; 1146-30408, /02 VT-JNY; 1185-30409, /02 VT-JNZ; 1228-30410, /02 VT-JGA; 1314-30412, /03 VT-JGC; 1920-34798, /06 VT-JGP; 2007-34797, /06 VT-JGQ; 2044-34799, /06 VT-JGR; 2085-34800, /06 VT-JGS; 2125-34801, /06 VT-JGT; 2170-34802, /07 VT-JGU; 2209-34803, /07 VT-JGV; 2297-34804, /07 VT-JGW; 3264-36694, /10 VT-JBQ; 3281-36695, /10 VT-JBR; 42799, VT-JFW, 2014-07; 42800, VT-JFX, 2014-07; 42804, VT-JFY, 2014-07), 30412; RTND. 30403; 30407; 30408; 30409; 30410; LST (PIA) 2012-08. WITH WINGLETS. 24C, 120Y.
3 737-85R (CFM56-7B26) (2550-35082, /08 VT-JBF; 2535-35083, /08 VT-JBG, 2008-03; 3433-36698, /10 VT-JBS), (SIL) LSD. WITH WINGLETS. 24C, 120Y.
2 737-85R (CFM56-7B26) (2439-35099, /07 VT-JBD, 2007-11; 2530-35106, VT-JBE, 2008-03), RBS AEROSPACE LSD. WITH WINGLETS. 24C, 120Y.
1 737-85R (CFM56-7B24) (2811-35289, /09 VT-JBH), (ILF) LSD 2009-02. WITH WINGLETS. 24C, 120Y.
2 737-85R (CFM56-7B26) (2974-36551, /09 VT-JBJ; 3074-36553, /09 VT-JBK), (CGP) LSD. WITH WINGLETS. 24C, 120Y.
1 737-85R (CFM56-7B26) (3000-35651, /09 VT-JBL), (SAQ) LSD 2009-09. 24C, 120Y.
4 737-86N (CFM56-7B24) (89-28578, /98 VT-JNA; 91-28575, /98 VT-JNB; 973-32577, /05 VT-JGH; 998-32578, /05 EI-; 1002-32579, /05 EI-DKR; 3055-36817, /09 VT-JBM; 3087-36818, /09 VT-JBN; 3101-36819, /09 VT-JBP; 38029, VT-JFA, 2012-07), (GEF) LSD. 28578; 28575; 32578; WITH WINGLETS. 28C, 126Y.
1 737-900 (CFM56-7B26), (GEF) LSD 2012-04. 28C, 132Y.
2 737-95R (CFM56-7B26) (1314-30412, /03 VT-JGC; 1350-33740, /03 VT-JGD). 28C, 132Y.
75/75 ORDERS 737 MAX 10 (LEAP-1B):
1 +5/6 ORDERS 777-22LR (GE90-115).
12 777-35RER (GE90-115BL2) (627-35157, /07 VT-JEA; 637-35158, /07 VT-JEB; 650-35159, /07 VT-JEC; 653-35160, /07 VT-JED; 660-35164, /07 VT-JEE; 666-35162, /07 VT-JEF; 675-35163, /07 VT-JEG; 678-35166, /07 VT-JEH; 693-35161, /08 VT-JEJ; 696-35165, /08 VT-JEK); 35160; 35162; 35164; WET-LST (THY) 6 MTHS 2008-12. 36161; 35166; LST (GUL) +2 2009-04. 3 LST (RBA). 35157; 35158; 35161; LST (TII) 2010-05. 25160 RF (TII) 2013-07. 8F, 30C, 274Y.
10 ORDERS (2013-?) 787-85R DREAMLINER, 270 PAX:
0 A320, (GUI) WET-LSD 6 MTHS.
3 A330-200F, (EHD) LSD (2015-04). FREIGHTER.
10 A330-202 (CF6-80E1A4B) (825, /07 VT-JWF; 831, /07 VT-JWG; 882, /07 VT-JWH; 885, /07 VT-JWJ; 888, /07 VT-JWK; 901, /08 VT-JWL; 923, VT-JWM, 2008-05; 932, /08 VT-JWN; 947, /08 VT-JWP; 956, /08 VT-JWQ), (ILF) LSD. 1 A330-200 LEASED TO AIR SERBIA (JAT). 30C, 196Y.
2 A330-243 (TRENT 772B-60) (751, /06 VT-JWD; 807, /07 VT-JWE), (ILF) LSD. 807; WET-LST (OMR) 2009-05. 30C, 196Y.
1 A340-313X (643, VT-JWA, 2005-05; 646, VT-JWB; 651, VT-JWC) (SAA) LSD. 646; RTND 2007-07. 651; RTND 2007-09. 38C, 231Y.
17 +4 ORDERS ATR 72-500 (PW127F) (572, /99 VT-JCA; 575, /99 VT-JCB; 593, /99 VT-JCC; 636, /00 VT-JCD; 640, /00 VT-JCE; 674, /01 VT-JCF; 679, /01 VT-JCG; 681 *, /01 VT-JCH; 771, /07 VT-JCJ; 775, /07 VT-JCK; 791, /08 VT-JCL; 793 *, /08 VT-JCM; 825 *, /08 VT-JCN; 841, /08 VT-JCP; 843, /08 VT-JCQ), (SFA) LSD, 6 AIR LSD. * JET AIRWAYS KONNECT OPS. 674; 679; 681; LST (CSA) 2012-08 AS (OK-GFQ; OK-GFR; OK-GFS). 62Y.
1 ATR 72-600 (1056, VT-JCX - - SEE PHOTO - - "JPL-ATR72-600 - 2012-10"), EX-(F-WWEQ), IN "JETKONNECT" LIVERY
00 ORDERS FAIRCHILD DORNIER 928JET, 25 CANCELED.
110/10 ORDERS EMBRAER E175, 75Y:
Click below for photos:
JPL-1-NARESH GOYAL - 2005-12-A
JPL-1-NARESH GOYAL - 2005-12-B
JPL-1-NARESH GOYAL - 2005-12-C
JPL-1-NARESH GOYAL - 2005-12-D
JPL-1-NARESH GOYAL - 2005-12-E
JPL-1-NARESH GOYAL - 2006-06
JPL-1-NARESH GOYAL - 2008-08
JPL-1-NARESH GOYAL - 2013-05
JPL-4-GAURANG SHETTY - 2013-01
NARESH GOYAL, CHAIRMAN & FOUNDER.
CRAMER BALL, CHIEF EXECUTIVE OFFICER (CEO), EX-(ASY) (2014-05).
GARY KENNETH TOOMEY, (CEO), EX-(ANZ)/(QAN), RESIGNED (2014-01).
Gary is former President & (CEO) of the Air New Zealand Group. Prior to that, he was deputy (CEO), (CFO) and Executive Director of Qantas (QAN) and (CFO) of Australian Airlines.
ABDULRAHMAN AL BUSAIDY, GROUP EXECUTIVE OFFICER.
HAMEED ALI, CHIEF OPERATIONS OFFICER (COO) & ACTING CHIEF EXECUTIVE OFFICER (CEO).
SITHAM NADARAJAH, EXECUTIVE VP ENGINEERING & MAINTENANCE, EX-(MAS).
BRAM STELLER, EXECUTIVE VP COMMERCIAL.
M SHIVKUMAR, SENIOR VP FINANCE.
GAURANG SHETTY, SENIOR VP COMMERCIAL.
RAJ SIVAKUMAR, CHIEF COMMERCIAL OFFICER (CCO) (2014-09).
Having joined the airline in August 2007, Raj previously spent 15 years with United Airlines (UAL).
RAJESH SHARMA, VP FINANCE.
CAPTAIN KRISHNA MOHAN, VP FLIGHT OPERATIONS (firstname.lastname@example.org).
STEPHEN JAGANATHAN, VP TECHNICAL, EX-(SIA) (1999-08),
B P BALIGA, VP PROJECTS (1998-07).
KANDIAH JEYAKANTHAN, VP ENGINEERING & MAINTENANCE, EX-(MAS),
P "MATT" MATTHEWS, VP MAINTENANCE.
NANDINI VERMA, VP CORPORATE AFFAIRS & PUBLIC RELATIONS (PR).
RAJESH VERMA, VP CUSTOMER SERVICES & IN-FLIGHT.
RAJEEV NAMBIAR, VP SALES (INDIA) (2014-09).
N HARIHARAN, VP HUMAN RESOURCES (HR) & SERVICES.
GAURANG SHETTY, VP MARKETING (email@example.com).
B P BALIGA, VP SUPPORT SERVICES.
K G VISHWANATH, VP COMMERCIAL STRATEGY.
MARTIN DREW, CARGO VP (2014-09).
N MALKANI, STAFF VP FLIGHT OPERATIONS.
ROGER PAGE, ASSISTANT VP ENGINEERING & MAINTENANCE, EX-(RAE) (1997-12).
MIKE JOHNSON, SENIOR GENERAL MANAGER ENGINEERING & MAINTENANCE.
KUA SAI LING, SENIOR GENERAL MANAGER LOGISTICS, EX-(MAS) (2001-01).
CAPTAIN A K VERMA, GENERAL MANAGER FLIGHT SAFETY (BOMDP9W).
S N HOON, GENERAL MANAGER ENGINEERING (SPECIAL PROJECTS).
C HURIAN, GENERAL MANAGER ENGINEERING, EX-(SIA) (2000-05).
R D SINGH, GENERAL MANAGER QUALITY CONTROL (QC).
EMMANUEL MENU, GENERAL MANAGER CONTINENTAL EUROPE (2007-05).
MR KURIAN, SENIOR MANAGER ENGINEERING PLANNING (2000-06).
R D THAKUR, MANAGER QUALITY CONTROL (QC) (1998-07).
DANIEL SALDANHA, MANAGER ENGINEERING MATERIEL.
S M SHINDE, MANAGER GROUND SUPPORT.
LEO KELLY, MANAGER PROPULSION ENGINEERING, EX-(QAN) (2000-06).
C S TOMAR, MANAGER TECHNICAL SERVICES (2000-12).
K H ONG, LINE MAINTENANCE MANAGER.