Jet Airways plans shift to network-based model

Mumbai: Even as it is battling the current downturn in travel, Jet Airways has started work to migrate to a network-based revenue optimisation programme.
Under the current system, Jet’s programme works on individual flights. The country’s largest private sector airline is now evaluating the process and methodology of leveraging its network, which will take two years and an investment of $5 million.
Raj Sivakumar, vice president, revenue management, said, “We want to become the leading airline in the region and this shift will help us leverage our expanding network and optimise our revenues.”
He said moving to the network model would help add to the yield, as the airline would gain by selling its seat inventory seamlessly, at the best prices across the network.
Revenue management at airlines requires the carriers to forecast future demand, optimise price points and optimally allocate seats, all based on passenger price sensitivity. Software is used to analyse trends as well as booking history to generate these data.
Take a Mumbai-Delhi flight as an example. The system predetermines expected demand and slots fares into various levels. If demand is expected to be from higher-value passengers, then it sets aside more seats for such traffic, so that those are not sold at a lower fare level.
10/12/08 Archana Shukla/Daily News & Analysis

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Categories: Jet Airways Dec 2008