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SAQ-2004-04-AIR SAHARA CRJ
SAQ-2014-01 - DOMESTIC CAPACITY
FORMED IN 1991 AND STARTED OPERATIONS IN 1993. FORMERLY SAHARA AIRLINES AND AIR SAHARA. DOMESTIC & INTERNATIONAL, SCHEDULED & CHARTER, PASSENGER & CARGO, JET AIRPLANE SERVICES.
SM CENTRE 5TH FLOOR
MAROL NAKA ANDHERI KURLA ROAD ANDHERI EAST
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.
NOVEMBER 1993: TO AHMEDABAD, BOMBAY, CALCUTTA, DIBRUGARH, GOA, GUWAHATI, HYDERABAD, JAIPUR, LUCKNOW, PATNA, & VARANASI.
2 737-200'S, LEASED.
JANUARY 1994: 1 737-200 (JT8D-15) DELIVERY.
APRIL 1996: R D THAKUR (EX-GENERAL MANAGER ENGINEERING INDIA), CHIEF ENGINEERING MANAGER REPLACES A K GUPTA.
PLANS TO REPLACE 737-200 WITH A 737-300. 5 ORDERS ATR42-500'S.
SEPTEMBER 1996: TRYING TO LOCATE +2 737-300'S ON LEASE.
FEBRUARY 1997: TO START AN AVIATION ACADEMY FOR FLIGHT CREW (FC), CABIN CREW (CA) AND MECHANICS (MT).
LOOKING FOR +2 737-300/-400'S LEASED. 1 737-200 FROM (PLM) REPOSSESSED FROM EAST WEST AIRLINES (BOM).
APRIL 1997: 737-400 (PW064), (ILF) LEASED, HEAVY MAINTENANCE AT MALAYSIA AIRLINES (MAS).
MAY 1997: PLANNING TO LEASE +3 737-400'S, IN 1997.
JULY 1997: 1,450 EMPLOYEES (INCLUDING 175 FLIGHT CREW (FC) & 164 MAINTENANCE TECHNICIANS (MT)).
DECEMBER 1997: 1 737-2K9 (22415), EX-BAVARIA (BAV), & DAMANIA (DAI).
FEBRUARY 1998: 1 737-2K9 (22416), EX-BAVARIA (BAV), & DAMANIA (DAI).
APRIL 1998: 1,450 EMPLOYEES (INCLUDING 175 FLIGHT CREW (FC) & 164 MAINTENANCE TECHNICIANS (MT)).
JUNE 1998: MR RAMDAS, AVIATION ADVISOR. R D THAKUR HAS LEFT THE AIRLINE.
JULY 1998: 1 ORDER (AUGUST 1998) 737-300 (24492), LEASED.
SEPTEMBER 1998: NAME CHANGED FROM "SAHARA INDIA AIRLINES" TO JUST "SAHARA AIRLINES."
737-300 (PQ284), (ILF) LEASE CANCELED. 737-200 (PK819) GROUNDED, (PLM) LEASE EXPIRED. 737-3Q8 (24492), (ILF) LEASED, EX-GARUDA (GIA).
OCTOBER 1998: DOMESTIC AIRFARES INCREASE 11.2%.
FEBRUARY 1999: 2 ORDERS (APRIL 1999) 737-700'S, (AWW) LEASED. 2 ORDERS (DECEMBER 1999) 737-800'S, BAVARIA (BAV) LEASED. PLANS TO ADD +8 AIRPLANES BEFORE OCTOBER 1999.
MARCH 1999: PARVEZ DAMANIA JOINS UPPER MANAGEMENT, EX-CHAIRMAN & MANAGING DIRECTOR, DAMANIA (DAI).
POSSIBLE +4 ORDERS 737-NG'S (2000).
APRIL 1999: SITA: DELDUS2.
1,450 EMPLOYEES (INCLUDING 175 FLIGHT CREW (FC) & 164 MAINTENANCE TECHNICIANS (MT)).
1 737-73A (28497), AWAS (AWW) LEASED.
MAY 1999: PLANS TO LEASE +1 737-700, & 2 737-800'S BY THE END OF 1999. 2 737-4S3'S (24165; 24166), EX-JET AIRWAYS (JPL) (VT-SIH). 2 ORDERS (OCTOBER 1999) 737-800'S (29049; 29050), TOMBO (TOM) LEASED.
JUNE 1999: WITHDRAWS APPLICATION FOR 10 B AE ATP'S, 70 PASSENGERS (PAX), & INSTEAD, ORDERS 2 EMBRAER 120, 30 PAX.
JULY 1999: 737-2U4 (22576), & 737-2U9 (22161), RETURNED TO (PLM).
SEPTEMBER 1999: 2 737-400'S (24165; 24166), EX-JET AIRWAYS (JPL).
NOVEMBER 1999: 1998 = +$1.2 MILLION (NET PROFIT).
DECEMBER 1999: MRS VANDANA BHARGAVA, CEO BASED AT HQ IN LUCKNOW.
2 737-81Q'S, 1 TOMBO (TOM), & 1 BAVARIA (BAV) LEASED.
JANUARY 2000: 2ND 737-400 (24166), EX-JET AIRWAYS (JPL).
FEBRUARY 2000: 1,700 EMPLOYEES.
FLIES TO 13 CITIES.
1999 = 1 MILLION PASSENGERS (PAX).
MARCH 2000: PLANS TO DOUBLE ITS INDIA MARKET SHARE, FROM 8% TO 16%.
12 ORDERS EMBRAER EMB-120 BRASILIA AIRPLANES, FOR ITS REGIONAL FLIGHTS. WILL PHASE OUT 2 737-200'S WHEN IT RECEIVES 2 737-400'S NEXT MONTH.
APRIL 2000: 1,761 EMPLOYEES (INCLUDING 95 FLIGHT CREW (FC), 127 CABIN ATTENDANTS (CA), & 268 MAINTENANCE TECHNICIANS (MT)).
JUNE 2000: PLM INTERNATIONAL (PLI), INITIATES LEGAL PROCEEDINGS AGAINST (SAQ), FOR BREACH OF CONTRACT INVOLVING 3 737-200'S.
(ICAO) IN ASSOCIATION WITH LOCAL (DGCA) IS CONDUCTING A SAFETY AUDIT AS PART OF COOPERATIVE DEVELOPMENT OF OPERATIONS SAFETY & CONTINUING AIRWORTHINESS PROGRAM (COSCAP).
737-4H6 (26447, VT-JAV) RETURNED TO MALAYSIA AIRLINES (MAS).
JULY 2000: HIRES ASIA PACIFIC (AVIATION CONSULTING FIRM, MELBOURNE, AUSTRALIA), WITH TEAM OF 15 PEOPLE TO AUDIT SAHARA AIR (SAQ).
ABANDONS PLANS TO FORM A REGIONAL SUBSIDIARY.
1999 = 389 MILLION (RPK) TRAFFIC; 50.2% LF LOAD FACTOR; 3.91 MILLION (FTK) FREIGHT TRAFFIC; 382,000 PASSENGERS (PAX); 1,761 EMPLOYEES.
737-2K9 (22415, VT-SIE) SOLD TO BLUE DART (BDA), TO BE CONVERTED TO FREIGHTER BY STAMBAUGH AVIATION.
SEPTEMBER 2000: CHANGES NAME FROM "SAHARA AIRLINES" TO "AIR SAHARA."
NEW HUB AT CALCUTTA.
NOVEMBER 2000: AFTER BEING IN PLACE FOR ONLY 6 MONTHS, THE 15 MEMBER TEAM OF MANAGEMENT CONSULTANTS FROM ASIA PACIFIC LED BY SITHAM NADARAJAH (EX-MALAYSIA AIRLINES (MAS) VP) HAS RESIGNED, DUE TO LACK OF COMMITMENT FROM AIR SAHARA (SAQ) UPPER MANAGEMENT IN TERMS OF FINANCE, AND SUPPORT.
737-4Q8 (24708) RETURNED TO (ILF), LEASED TO GARUDA INDONESIA (GIA). PLANS TO LEASE 4 737NG'S BY MID-2001, & +8 BY THE END OF 2001 FOR TOTAL 20. 1 737-4Q8 (24705) RETURNED TO (ILF).
APRIL 2001: 1,761 EMPLOYEES (INCLUDING 95 FLIGHT CREW (FC), 127 CABIN ATTENDANTS (CA), & 268 MAINTENANCE TECHNICIANS (MT)).
PLANS TO LEASE 2 737-700'S & 1 737-800, FROM ANSETT (AWW), & TOMBO (TOM) WITHIN NEXT 4 MONTHS.
NOVEMBER 2001: (SAQ) SIGNS UP FOR myboeingfleet.com.
DECEMBER 2001: 1 737-4Q8, AND 2 737-76Q'S, LEASED. WILL INCREASE DAILY FLIGHTS FROM 38 TO 54, AND PLANS TO FLY TO NEW DESTINATIONS, INCLUDING NORTHEASTERN INDIA. BY THE END OF 2002 WANTS TO HAVE 20 AIRPLANES AND INCREASE ITS MARKET SHARE FROM ITS CURRENT 9% TO 20%. 1 737-4Q8 (24234), EX-TRAVEL SERVICE (TSF), ANSETT (AWW) 3 YEAR LEASED. "C" CHECK AND RECONFIGURED WITH WEBER SEATS BY HEAVYLIFT (HVL).
MARCH 2002: (firstname.lastname@example.org).
TO PUNE (DAILY).
APRIL 2002: (http://www.airsahara.net/prod/).
MAIN BASE: DELHI - INDIRA GANDHI INTERNATIONAL AIRPORT (DEL).
HUB: MUMBAI INTERNATIONAL AIRPORT (BOM).
July 2002: 2 737-7K9 (28090; 28091, VT-SIH), Bavaria (BAV) leased.
August 2002: 737-4S3 (24165) returned to lessor.
October 2002: Chennai - Delhi/Bangalore.
2 737-31S's (29055; 29056), ex-Deutsch-BA (DBA), (DSF) 4 month leased. $400 million, 11 orders A320's.
December 2002: 8 orders Canadair RJ-200ER's.
January 2003: 737-4YO (24166), returned to Hanway Corporation.
February 2003: CL-600-2B19 (7242, VT-SAP), Bombardier leased.
March 2003: 2 CL-600-2B19's (7224; 7227), ex-Midway (MID), Craft leased.
April 2003: 1,761 employees.
May 2003: 737-4S3 (24166, VT-SIY), Hanway Corp leased.
July 2003: 4 CRJ200's (7345; 7393; 7434, VT-SAS; 7469), ex-FlyBE (BEE), Abbey National leased.
September 2003: Ahmedabad - Jaipur, Mumbai - Chennai, Bangalore - Kochi, Kolkata - Bangalore, and Pune - Hyderabad.
2 737-31S's (29055; 29056), Boullioun (BOU) leased.
October 2003: 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.
CL-600-2B19 (7393), FlyBe (BEE) leased.
November 2003: To operate daily flights to Colombo from major cities, including Delhi, Mumbai, Bangalore, Chennnai, Kolkata, Hyderabad, & Goa. Is also considering services linking Indian Buddhist centers at Sarnath (Varanasi), Bodh Gaya (Patna), & Kushinagar (Gorakhpur) to the Sri Lankan capital.
CL-600-2B19 (7345), FlyBe (BEE) leased.
January 2004: Hired Rono Dutta, former President of United Airlines (UAL) as an advisor.
April 2004: The Indian government OK's Jet Airways (JPL) and Air Sahara (SAQ) to fly daily flights to Nepal and Bangladesh.
The 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.
May 2004: 737-382 (2226-25161, VT-SAY), Ansett Worldwide (AWW) leased.
August 2004: Rono Dutta, ex-United Airlines (UAL), CEO.
September 2004: Delhi - Kathmandu (daily).
November 2004: Plans to creat a hub in Hyderabad with 140 flights/week by February 2005, & 217 flights/week by 2006, compared to the current 28 weekly services.
Expects to add 18 to 24 airplanes over the next 3 years, including at least 6 737's for new services to Bangkok, Kuala Lumpur, & Singapore. Would also like to begin flights to London and is looking at long-haul airplanes.
December 2004: 737-4Q8 (24707), ex-Air Europa (ARE), (AWAS) (AWW) leased.
March 2005: 2 orders 737-7BK's (33025; 33026), CIT Group (TCI) leased.
May 2005: 737-3Q8 (30727, VT-SJE), (ILF) leased. 737-4S3 (24166, VT-SIY) returned to Hanway Corp. 2 737-7BK's (33025, VT-SIZ; 33026, VT-SJA), CIT (TCI) leased. 737-7Q8 (30737, S7-SEZ), ex-Air Seychelles (ASY), (ILF) leased.
June 2005: 737-36Q (29141, VT-SJD), delivery. 2 orders (September 2005) 777-200ER's, (ILF) leased to start Delhi to London (daily) in September/October 2005.
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.
October 2005: Jet Airways (JPL) proposed allowing foreign pilots (FC) to stay three years instead of one to solve India's chronic pilot (FC) shortage. According to the "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. (SAQ) approached Ernst and Young to assist it with capital raising options to meet its expansion plans.
(SAQ) announced introduction of 8 additional flights by the end of the month on the following routes : Delhi - Bangalore - Chennai, Delhi - Chennai and Delhi - Kolkata.
INCDT: A (SAQ) 737-4Q8 (24705, VT-SID) en route from Kolkata to Mumbai overshot the runway on landing at Mumbai. The airplane ended up in soft mud and its right engine and tires were severely damaged.
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.
American Airlines (AAL) and (SAQ) reached code share and fully reciprocal frequent-flier agreements. Subject to government approval, (AAL) plans to put its code on (SAQ) flights to 26 destinations, while the Indian carrier will place its code on (AAL) flights between Delhi and Chicago and destinations beyond O'Hare.
Kingfisher Airlines (KFH) made a bid to take over 100% of (SAQ), (KFH)'s parent company, UB Group head, Vijay Mallya revealed, according to media reports. Mallya said the offer was lower than the $750 million - $1 billion Ernst and Young said (SAQ) was worth. In addition, he told reporters that the UB Group plans to raise $400 million, half of which will come through an Initial Public Offering (IPO) for (KFH).
December 2005: Air Sahara (SAQ) will acquire seven 737-800s on lease and is negotiating the lease of two 767s, President Rono Dutta told reporters. (SAQ) is expanding its network with four-times-weekly flights between Delhi and London set to begin January 6 and include with a transatlantic code share with American Airlines (AAL), plus an additional daily service to Singapore and planned service to Bangkok, Hong Kong and Kuala Lumpur.
767-322ER (25280, VT-SDL), Constitution Air Leasing leased.
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 (SAQ). (SAQ) 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 (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) operates 50 airplanes: Three A340-300s, five 737-400s (a sixth is in storage), eight ATR 72s and 34 737NGs. (JPL) has 10 A330-200s, 10 777s and 10 737NGs on order. (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.
(JPL) carried 9 million passengers in 2005, while (SAQ) flew 3.5 million, according to the "Associated Press." Indian Airlines (IND) carried 8.7 million. The deal is subject to government approval.
The 767-322ER (25280, VT-SDL) will operate a new four-times-weekly service between Delhi and London Heathrow, starting January 6th. (SAQ) is inaugurating service from Kolkata to Ahmedabad on January 15th. (SAQ) is increasing service on its Delhi to Mumbai route from 6 to 7 flights a day from January 20th and on its Delhi to Hyderabad route from 2 to 3 flights a day from February 1st.
February 2006: Jet Airways (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 (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 (FC) 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 time frame, "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 777-200LRs 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 (F) on board, 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% LF.
(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.
737-8Q8 (30694, VT-SJG), (ILF) leased.
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, code sharing 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. (QAN) 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.
737-8Q8 (30695, VT-SJH), (ILF) leased.
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, (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.
(JPL) is finalizing the integration of Sahara Airlines (SAQ), which operates a fleet of 20 737s and seven CRJ-200s. "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.
June 2006: Jet Airways (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 (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 (SAQ) 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 (SAQ) 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 (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."
August 2006: The Centre for Asia Pacific Aviation (CAPA) 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 & Middle East, Kapil Kaul said, adding that 60 million passengers are expected to fly on Indian carriers in 2010.
Air Sahara (SAQ) applied for approval from the Indian government to launch daily Delhi - Guangzhou flights from November 7. (SAQ) said it also plans to begin services to the Maldives and Bangladesh this winter.
Boeing (TBC) confirmed that (SAQ) is a previously unidentified customer for 10 737-800s. The order, worth more than >$700 million at list prices, was placed in the first quarter of this year. Deliveries are scheduled to begin in mid-2009. "This order reflects our confidence both in the growth of India's aviation market and (SAQ)'s modernization and expansion plans," President, Alok Sharma said.
(SAQ) operates three 737-800s, eight 737-700s, three 737-400s, three 737-300s and seven CRJ-200s. It took delivery of an additional 737-400, according to press reports, and will take another next month.
At a New Delhi news conference, Boeing (TBC) said Indian carriers will need 856 new airplanes worth more than $72 billion over the next 20 years, nearly double the 470 airplanes, it projected last year.
737-89P (34399, VT-SJI), Bavaria International (BAV) leased.
September 2006: 737-89P (34400, VT-SJJ), Bavaria International (BAV) leased.
October 2006: Air Sahara (SAQ) began its first nonstop service from Thiruvananthapuram to Delhi. The flight operates on a daily basis using a 737. On the way from Delhi to Thiruvananthapuram, the flight makes a stop in Kochi.
November 2006: 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.
February 2007: The Indian government is getting tough on English standards following a series of recent near mishaps, sending home at least 20 foreign pilots (FC) (mainly from Asia and central Europe) because of their poor command of the language. Indian Director General of Civil Aviation, Kanu Gohain told reporters that "the pilots (FC) posed a safety risk."
Since its start of operations, Air Sahara (SAQ)'s market share has never exceeded 16%. Presently, (SAQ) has 28 airplanes and operates 130 daily flights to 25 domestic destinations.
March 2007: Has received OK from Indian regulatory authorities to launch flights to Guangzhou, Colombo, and Male.
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.
April 2007: Jet Airways (JPL) and Air Sahara (SAQ) signed an acquisition agreement, with (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 next week.
(JPL), whose agreement to acquire (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 (SAQ)" 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."
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). (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 codeshare 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.
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. (JPL) 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. (JPL) 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. (JPL) 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 Air Sahara (SAQ) into "JetLite" to be finalized within "some months."
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.
Jet (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.
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 Jet (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. Jet (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.
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.
Jet (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.
December 2007: (ILFC) (ILF) announced the following airplane lease deals: Jet Airways (JPL) for one new 737-800 powered by (CFM56-7B24)s, to be delivered in December 2008 under a 10-year lease, and Jet (JPL) subsidiary, JetLite (SAQ) for one 737-700 powered by (CFM56-7B24)s, delivered next month, under a seven-year lease.
January 2008: 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. Jet (JPL) cited "historical high fuel prices and startup 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 Jet (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 Jet (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, Jet Airways (JPL) reported a loss of -INR319 million, that marks an improvement over a -INR601 million deficit in the year-ago period.
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.
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," Jet (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." Jet (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.
Jet Airways (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, Jet (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. Jet (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.
September 2008: JetLite (SAQ) second quarter financial results = net loss of -$31 million and an operating loss of -$47 million.
October 2008: Jet Airways (JPL) reported a -INR3.85 billion/-$71.5 million loss in its fiscal second quarter ended September 30, reversed from a +INR283 million profit in the year-ago period, as the grave conditions that forced it into an alliance with rival Kingfisher Airlines (KFH) and prompted Jet (JPL)'s failed attempt to cut -1,900 jobs wreaked havoc on its P&L. "The impact of the global meltdown and the resultant slowdown in traffic has been felt by airlines across the world and India has been no exception to this," Jet (JPL) said, while stating that the September quarter "is historically the weakest quarter of the year in terms of demand."
Second-quarter revenue rose +44.6% year-over-year to INR32.58 billion as passenger numbers climbed +7.6% to 2.8 million. Its pre-tax loss was -INR5.79 billion compared to a +INR425 million profit on a similar basis last year. (RPK)s traffic soared +54.1% to 5.58 billion, against a +55.3% increase in (ASK)s to 8.42 billion. Load factor fell 0.5 point to 66.3% LF.
The company's low-cost subsidiary, JetLite (SAQ) posted a net loss of -INR2.73 billion, deepened from a -INR862.7 million deficit in the year-ago period. Its load factor plunged -6.8 points to 61.2% LF. Jet (JPL) and JetLite (SAQ) now are codesharing, have combined reservations systems and JetLite (SAQ) began offering buy-on-board catering in August. In addition, 1,000 employees were let go last month. "We believe we can turn around the JetLite (SAQ) operations in a few months," the company said.
As for the mainline, which operates 84 airplanes, "our focus on domestic market consolidation will continue and so will our cost reduction initiatives," it said. It will postpone all airplane deliveries "by at least a year" and will retire four 737s from the fleet, but stressed that it has canceled no orders. It is expecting higher loads as capacity shrinks, but it expects the industry to "continue to grow" domestically and profits to return on Indian operations. Capacity additions will "largely" be on regional routes operated with ATR72-500s.
Jet (JPL) said long-haul operations "will take another 1 to 2 quarters to stabilize" as a result of the global economic slowdown. "We are eliminating our highest loss-making routes from the international network and have right-sized our capacities on the North American routes," it said. Mumbai - Shanghai - San Francisco and Amritsar - London Heathrow will cease by February - - it said the two routes accounted for nearly half its international losses during the quarter. It will lease out four surplus widebodies for the "medium term."
Jet (JPL)'s half-year loss of -INR2.41 billion compared to a +INR592 million profit in the year-ago semester. Revenue rose +45.3% to INR61.58 billion.
November 2008: 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.
January 2009: Jet Airways (JPL) reported a -INR2.14 billion/-$42.8 million loss in its third fiscal quarter ended December 31, widened from a -INR911.2 million deficit in the year-ago period, and said that it will maintain focus on "domestic market consolidation" and "cost reduction initiatives," including plans to "rationalize our workforce." (JPL) said falling fuel prices and rising yields helped it improve from a brutal fiscal second quarter in which it lost -INR3.85 billion. Third-quarter revenue rose +24.6% year-over-year to INR30.23 billion, while expenses climbed +24.7% to INR31.07 billion, deepening operating loss to -INR840.6 million from the -INR661.7 million suffered in the quarter ended December 31, 2007.
System-wide traffic, including its JetLite (SAQ) subsidiary, rose +17.9% to 5.37 billion (RPK)s traffic against a +23.2% climb in capacity to 8.11 billion (ASK)s. Load factor fell -2.9 points to 66.2% LF and passenger numbers were down -13.1% to 2.6 million. (SAQ) reported a -INR220 million loss in the quarter, reduced from -INR860 million in the year-ago period.
(JPL) said traffic during the period was hurt by the global economic downturn and November's terrorist attacks in Mumbai, but that efforts to boost or maintain yield through capacity cuts have helped preserve operating margins. (JPL) expects domestic capacity to be "flat" over the "next few quarters" while loads will rise on international services owing to capacity reductions. From April, (JPL) will lease out an additional four 777s and will not renew leases on three 737 Classics when they expire this quarter. It currently operates 10 777-300ERs, 51 737s, 12 A330-200s and 14 ATR72-500s. (SAQ) flies 17 737s and seven CRJ-200s.
Nine-month loss of -INR4.55 billion compares to a -INR318.8 million deficit during the year-ago period. Operating loss widened to -INR12.37 billion from -INR4.04 billion.
INCDT: (SAQ) 737-89P (2030-34399, /06 VT-SJI) suffered a bird strike on take-ff from Kolkata on January 17th, as a result of which the left hand engine caught fire, forcing the flight crew (FC) to declare an emergency. The (FC) shut the engine down and activated the fire extinguisher, which stopped the fire. The airplane with 5 (FC)-(CA)/38 passengers on board returned to Kolkata and landed safely. An investigation into the incident revealed that a large bird (a kite) was sucked into the left engine before the airplane reached an altitude of 500 feet. The left engine suffered several damaged compressor blades consistent with a bird strike. Both the flight crew (FC) and Air Traffic Control (ATC) were not able to see any bird activity due to a light fog prevailing during take-off.
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.
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.
Jet Airways (JPL) said it will expand its (JPL) "Konnect" (SAQ) 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: Jet Airways (JPL) suffered a -INR2.25 billion/-$46.1 million loss in its first fiscal quarter ended June 30, a reversal from the year-ago period's +INR1.43 billion profit, but said that "operationally the performance has stabilized" and that efforts to reduce capacity and costs "have started to show results."
Revenue fell -16.2% to INR24.28 billion as passenger numbers declined -18% to 2.6 million, but it was a one-time charge of INR9.16 billion related to a change in the company's depreciation policy that produced the final result. (JPL) flew 4.91 billion system (RPK)s traffic during the quarter, down -10.7%, against a -18% cut in capacity to 6.69 billion (ASK)s. Load factor rose +6 points to 73.4% LF.
(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 JetLite (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."
September 2009: 737-85R (35651, VT-JBL), leased to Jet Airways (JPL).
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" brand. 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."
November 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.
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: Jet Airways (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%.
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.
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.
January 2010: Jet Airways (JPL) returned to profit after two consecutive quarters in the red, posting a +INR1.06 billion/+$22.9 million net profit in the fiscal third quarter ended December 31 that compared to a -INR2.14 billion loss in the year-ago period. (JPL) said that "a series of strategic marketing initiatives implemented during the fiscal [quarter] and improved traffic loads start[ed] paying off," and that yield, traffic and cost efficiencies all increased. (CEO), Nikos Kardassis cited "the onset of a more favorable environment for the aviation industry" and said that "as the tide turned, (JPL) was well positioned to consolidate its gains on all fronts."
Third-quarter revenue was INR29.36 billion. Passenger numbers soared +33.2% to 3.4 million as traffic (RPK)s climbed +17.4% to 6.31 billion. Capacity was cut -2.9% to 7.88 billion (ASK)s, lifting load factor +13.8 points to 80% LF.
(JPL)'s domestic operation produced INR13.02 billion in revenue on a +38% growth in traffic. International flights produced INR16.35 billion in turnover as load factor rose to a record 82.5% LF, up +14.7 points year-over-year. (JPL) took a INR179 million charge related to grounded airplanes.
On the domestic front, "the trends for next few months look healthy and the capacity situation seems to be under control," while its international business is "experiencing a consistent growth in operating margins," it said with a revival in premium demand expected "in the next few quarters." Its JetLite (SAQ) low-fare division reported a +INR39 million profit, reversed from a -INR220 million loss in the quarter ended December 31, 2008, despite a -8.9% drop in revenue to INR4.32 billion.
(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%.
November 2010: 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 (LCC)s.” 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.
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.
September 2011: Jetkonnect (SAQ) is a Jet Airways (JPL) subsidiary operating scheduled jet airplane services to the metropolitan centers of India, in addition to international services to Colombo and Kathmandu.
Employees = 1,204.
(IATA) Code: S2 - 705. (ICAO) Code: JLL - (Callsign - SAHARA).
Parent organization/shareholders: Jet Airways (JPL) (100%).
Main Base: Delhi Indira Gandhi International airport (DEL).
Hubs: Chennai International airport (MAA); Calcutta (Kolkata) International airport (CCU); Hyderabad airport (HYD); & Mumbai (Bombay) International airport (BOM).
Domestic, Scheduled Destinations: Ahmedabad; Allahabad; Bangalore; Bhubaneswar; Chennai; Coimbatore; Delhi; Dibrugarh; Goa; Gorakhpur; Guwahati; Hyderabad; Jaipur; Kochi; Kolkata (Calcutta); Lucknow; Mumbai; Patna; Pune; Ranchi; Srinagar; Varanasi; & Vishakhapatnam.
International, scheduled destinations: Colombo and Kathmandu.
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.
During the second quarter, management intends to complete transactions for another eight to nine narrow body airplanes.
November 2013: 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 (SAQ) 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 2014: ATR72-600 (1075, VT-JCZ), (GEF) leased.
January 2014: 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 - - "SAQ-2014-01 - DOMESTIC CAPACITY."
Based on current schedule data, Jet Airways (JPL) (including JetKonnect (SQH)) 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 (SQH) have both dropped four domestic routes each.
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.
(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.
March 2015: 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 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 three 737-700s and five 737-800s on flights to thirty-two destinations across India.
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SAQ-ATR 72-600 - 2012-10
0 737-2K9 (JT8D-17) (709-22416, /80 VT-SIF), EX-(DAI), (BAV) LSD. 22415 TO (BDA) 2000-06. RTND. 8C, 101Y.
0 737-2U4 (JT8D) (761-22576, /81 VT-EWC; 652-22161, /80 VT-SIB), EX-(MDM), (PLI) LSD 1993-11. 2 RTND.
0 737-3M8 (CFM56-3) (24413; 24414), RTND (AFW), LST (ADH).
1 737-3Q8 (CFM56-3) (1005-30727, VT-SJE), (ILF) LSD 2005-05.
0 737-3Q8 (CFM56-3) (1808-24492, /90), EX-(GIA), RTND (ILF), LST (UKA).
0 737-31S (CFM56-3C1) (2923-29055, /97 VT-SAW; 2928-29056 /97 VT-SAX), EX-(DBA), DSFI LSD 4 MTHS 2002-10. (BOU) LSD 2003-09. RTND. 12C, 106Y.
0 737-36Q (CFM56-3) (3035-29141, VT-SJD), 2005-06. RTND LESSOR, LST (BMI) 2008-08.
0 737-382 (CFM56-3) (2226-25161, VT-SAY), (AWW) LSD 2004-05. RTND.
0 737-4Q8 (CFM56-3C1) (1971-24705, /90 VT-SID; 2076-24708, /91), EX-(MAS), (ILF) LSD (24708 RTND, LST (GIA) 2000-11), 24705 RTND (ILF) 2000-11, LST (GIA). (1627-24234, /88 VT-SIQ), EX-(TSF), (AWW) 3 YR LSD 2001-12. 24705; PARTED OUT 2007-02. 16C, 114Y.
0 737-4Q8 (CFM56-3C1) (2057-24707, VT-), EX-(ARE), (AWW) LSD 2004-12.
0 737-4Q8 (CFM56-3C1) (28202, VT-SJB), (ILF) LSD 2005-02. RTND.
0 737-4S3 (CFM56-3C1) (1720-24165, /89 VT-SIH; 1722-24166, /89 VT-SII), EX-(JPL), 24165 RTND 2002-08, 24166 RTND 2003-01. 12C, 138Y.
0 737-4S3 (CFM56-3C1) (1722-24166, /89 VT-SIY), HANWAY CORP LSD (AGAIN), TO (FUA) 2005-05.
2 737-7BK (CFM56-7B22) (1707-33025, /05 VT-SIZ; 1715-33026, /05 VT-SJA), (TCI) LSD 2005-05. 144Y.
2 737-7K9 (CFM56-7B20) (205-23090, /99 VT-SIU, 2002-07; 223-23091, /99 VT-SIH 2002-09), (BAV) LSD. 144Y.
1 737-7Q8 (CFM56-7B22) (1005-30727, /01 VT-SJE), EX-(ASY), (ILF) LSD 2005-05. 144Y.
2 737-7Q8 (CFM56-7B24) (1142-28250, /02 VT-JLB; 1449-30037, /04 VT-JLA), (ILF) LSD 2008-03. 144Y.
2 737-71Q (CFM56-7B) (138-29043, /98 VT-JLC; 152-29044, /98 VT-JLD), EX-(VT-JNE & VT-JNF) 2010-03. 16C, 96Y.
0 737-73A (CFM56-7B24) (216-28497, /99 VT-SIG), (AWW)/(BOU) LSD. RTND. 12C, 114Y.
0 737-76Q (CFM56-7B24) (1010-30279, /01 VT-SIR; 1025-30280, /01 VT-SIS), (BOU) LSD 2002-01. RTND. 20C, 102Y.
2 +5 ORDERS 737-8Q8 (CFM56-7B26) (1863-30694, /06 VT-SJG; 1891-30695, /06 VT-SJH - - SEE PHOTOS - - "SAQ-737-8Q8-2009-10"), (ILF) LSD. WITH WINGLETS. 186Y.
2 737-81Q (CFM56-7B24) (424-29049, /99 VT-SIJ; 444-29050, /99 VT-SIK), (TOM) 5 YR LSD. 186Y.
2 737-89P (CFM56-7B24) (2030-34399, /06 VT-SJI; 2053-34400, /06 VT-SJJ), (BAV) LSD. 186Y.
1 +9 ORDERS 737-85R (CFM56-7B26) (3000-35651, VT-JBL), 35651; LST (JPL) 2009-09. 186Y.
0 767-322ER (391-25280, /05 VT-SDL, 2005-12), EX-(UAL), CONSTITUTION AIR LEASING LSD. RTND.
2 ORDERS 777-200ER'S, (ILF) LSD.
00 ORDERS A320, 11 NTU.
5 ORDERS ATR42-500.
1 ATR72-600 (1056, VT-JCX - - SEE PHOTO - - "SAQ-ATR72-600 - 2012-10;" 1075, VT-JCZ, 2013-12), EX-(F-WWEQ), IN JETKONNECT LIVERY, (GEF) LSD.
12 ORDERS EMBRAER EMB-120, 30 PAX.
3 +1 ORDER CANADAIR CRJ-200ER (CL-600-2B19) (CF34-3B1) (7224, /98 VT-SAL; 7469; 7227, /98 VT-SAO; 7242, /98 VT-SAP, 2/03), EX-(MID), BOMBARDIER LSD. 50Y.
4 CRJ-200LR (CF34-3B1) (7345, /99 VT-SAQ, 2003-11; 7393, /00 VT-SAR, 2003-10; 7434, /00 VT-SAS; 7469 /01 VT-SAU; 2003-09), EX-(BEE), ABBEY LSD 2003-07. 50Y.
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SAQ-RONO DUTTA CEO 2004-08
NARESH GOYAL, CHAIRMAN.
SAROJ DATTA, MANAGING DIRECTOR (email@example.com).
MAUNU VON LUDERS, CHIEF EXECUTIVE OFFICER (CEO), EX-FLYNORDIC (NOQ). (2008-04).
KAPIL KAUL, GENERAL MANAGER.
CAPTAIN PATRIK RASTOV, VP FLIGHT OPERATIONS.
CAPTAIN A OSWAL, HEAD FLIGHT OPERATIONS.
CAPTAIN S D SANDHU, CHIEF FLIGHT OPERATIONS (firstname.lastname@example.org)
CAPTAIN BHATIA, MANAGER FLIGHT OPERATIONS SAFETY (email@example.com).
MR RAMDAS, AVIATION ADVISOR (1998-06).
PARVAS DAMANIA, DIRECTOR.
S P VERMA, GENERAL MANAGER ENGINEERING (2002-01).
SANJAY BAHADUR, CHIEF MANAGER ENGINEERING (1999-10).
S L SRIVASTAVA, GENERAL MANAGER QUALITY CONTROL (QC) (1999-10),
ROY THOMAS, SENIOR MANAGER MAINTENANCE.