Turbulence at home: Jet to up foreign flights

Mumbai: Private carrier Jet Airways is expected to further consolidate its international operations into a major revenue grosser in FY09, to overcome the growing turbulence in the domestic sector.
The general economic scenario does not bode well for capacity expansion on domestic routes, with some of these struggling on account of overcapacity, and only yesterday some airlines were pushed to hike fares to make up for higher aviation turbine fuel prices.
According to market sources Jet's international operations would account for 44 per cent of the overall revenues in FY09, as against 11 per cent in FY06 and 18 per cent in FY07. Clearly, opening up of international routes has benefited the airline significantly.
For Jet, says a report by a leading equity research firm, the international segment is likely to grow sharply at 104 per cent CAGR from Rs 1,357.4 crore in FY07 to Rs 5,643.6 crore in FY09.
It is estimated that the international passenger movement for the airline will increase to 22 per cent of total passengers carried in FY09 from eight per cent in FY07.
03/04/08 Manisha Singhal/Business Standard

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Categories: Foreign Apr 2008, Jet Airways Apr 2008