Wednesday, November 29, 2017

Air France-KLM Extends India Reach With Jet Air Revenue Pact

Air France-KLM Group and Jet Airways India Ltd. agreed to deepen an existing partnership with offerings on India-Europe routes together, giving the biggest European airline more seamless access to the world’s fastest growing major aviation market.

The latest deal will offer travel options for 44 cities in India and 106 destinations across Europe, Jean-Marc Janaillac, chairman of Air France-KLM said in a statement. In addition, another partnership between the European group and Delta Air Lines Inc. will help connect India to a trans-Atlantic network with hubs in Amsterdam and Paris.

Jet Airways passengers will be able to book a single ticket for a trip to the U.S. and Europe, and fly Delta, Air France-KLM or Virgin Atlantic for different legs of the journey, under the agreement. Flights will be “metal neutral,” meaning revenue will be shared regardless of whose aircraft is deployed.

The enhanced tie-up with Jet Airways, 24 percent owned by Abu Dhabi’s Etihad Airways PJSC, brings the European carrier closer to a market where passenger traffic is growing at more than 20 percent every year. Air France-KLM has significantly strengthened its links with other major carriers in recent months, with an agreement in July to buy 31 percent of Britain’s Virgin Atlantic Airways Ltd. while selling 10 percent stakes to SkyTeam alliance partners Delta Air Lines Inc. and China Eastern Airlines Corp.

Etihad will stay invested and the Indian company has no plan to sell more stakes to any other airline, Jet Airways chairman Naresh Goyal told reporters in Mumbai. The latest deal will help the airline boost revenue by $1 billion, he said without elaborating.
Jet Airways and state-owned Air India Ltd. are among carriers whose fortunes have ebbed over the years after Gulf operators like Emirates Airline, Etihad and Qatar Airways Ltd. started offering cheap fares to fly passengers to their hubs in Dubai, Abu Dhabi and Doha, before transferring them to other flights. On local routes, no-frills carriers like market leader IndiGo, operated by InterGlobe Aviation Ltd., and SpiceJet Ltd. have captured market share with on-time services and cheap fares.
29/11/17 Anurag Kotoky/P R Sanjai/Bloomberg

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