Indian Mood :: Travel News :: Jet Airways planning to lease out more aircraft to neutralise slump impact

For More Information's & Details 0844 418 5555
Email Sales Enquiry

Jet Airways planning to lease out more aircraft to neutralise slump impact

Jet Airways leased out nine aircraft since December last year and is planning to lease out more aircraft in the coming months. The airline is also in the process of consolidating its presence and has no plans to launch any new routes unless there is any sign of recovery in the market. According to a Financial Express report, Sudheer Raghavan, Chief Commercial Officer, Jet Airways said, “We are not pulling out from any international routes nor are we adding new routes. We will review our stand on launching new routes if the market recovers. Right now, its time for consolidation. In October 2008, the industry saw highest domestic fares but now it has dropped to almost 50 per cent. Logically speaking, when the prices came down the industry should have seen incremental numbers in terms of air travel. But that did not happen. On the other hand, although the fuel costs have come down, airlines have not benefited because we are still paying for our old aviation fuel bills when the prices were at USD 147 a barrel.”

Talking about cutting staff, he said, “We do have excess manpower. But what we are trying to do now is redeploy them in areas, which will result in better customer service.” Earlier speaking at the ‘7th Routes Asia 2009’ seminar held recently in Hyderabad, he said, few years ago when there was an unprecedented economic growth in the country, almost all the airlines expanded their capacity and brought in dynamic pricing models to compete in the market. But from November 2008, the market has dropped by 22 per cent and now the industry has excess capacity. The estimated industry loss for the year 2008-09 is USD 1.5 billion and as per IATA numbers it is as high as USD 8.7 billion. “The industry needs to do some amount of restructuring and re-organising exercises. At this point, we need to create new segments and new markets like developing domestic tourism which is still untapped to a large extent. Incentivise more people to travel and position India as a global aviation hub,” added Raghavan.

Holiday Mood Limited
66 Park Way
Ruislip Middlesex HA48NR
Tel: 0844 418 5555 Fax: 01895 674242
E-mail: sales@holidaymood.co.uk

Partner Sites: www.holidaymood.co.uk www.ozzymood.co.uk www.africanmood.co.uk www.dubaimood.co.uk www.flightsmood.co.uk www.jumeirahbeachdubai.co.uk

The flight bookings we make are ATOL protected by the Civil Aviation Authority, except when tickets for scheduled flights are sent to your within 24 hours of payment being accepted. Our ATOL number is 5934. We also act as agents for other ATOL holders. ATOL protection extends primarily to customers who book and pay in the United Kingdom