Jet sees reduced demand for air travel industry

Hyderabad: Forecasting a reduced demand for air travel in the next 12 months, Jet Airways has said that it is conserving cash in times of slowdown.
The airline has taken several initiatives, including discontinuation of loss making routes and downsizing capacity on international routes.
“Our market share is down to 17 per cent from 45 per cent a few years ago. With JetLite, our domestic share is 25 per cent.
“We are not looking at market shares but profitability,” Mr Gilbert George, General Manager (Sales) of Jet Airways, told Business Line.
Mr George was at Srinidhi Institute of Science and Technology here last week to take part in the second international symposium on opportunities and challenges facing the aviation industry.
Major restructuring
Forecasting a reduced demand for air travel industry in the country in the next 12 months, Mr George said the industry would have to go through a major restructuring, which includes rationalising of prices to economic levels. Stating that the artificial demand was created by unreasonable pricing, he, however, pointed out that the pent-up demand could bring back unprecedented growth rates.
20/04/09 K.V. Kurmanath/Business Line

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Categories: Jet Airways Apr 2009