Friday, June 26, 2009

Jet likely to join One World Alliance

New Delhi: Jet Airways is likely to join the One World Alliance, sources told NDTV, adding that Jet officials are meeting the alliance representatives in London.
One World is an alliance of 10 biggest airlines. In the fourth quarter of FY09, Jet’s earned over half of its operating revenue from its international business.
Membership of the alliance will give Jet access to 700 destinations across 140 countries and 500 airports with Jet passengers enjoying common baggage handling and mileage points.
This will help improve load factor and revenue for Jet Airways. Ankur Bhatia, ED of Bird Group, said, “If Jet gets to join the alliance it will be a big advantage for the airline as it will give the captive passenger base of some of the biggest airlines like British Airways and American Airline to Jet Airways.”
Earlier, Jet had resisted becoming a member of any alliance as yield per seat goes down with alliance partners since passengers come with discounted tickets. Even now, Jet Airways denied it is joining the alliance and its spokesperson said to NDTV, "We believe in working on a bilateral basis and are not joining any alliance now."
Meanwhile, Jet's move is essentially indicative of the airline's increasing focus on the international market. After all 56 per cent of its operating revenues came from international operations for Q4.Besides, it is targeted toward consolidation and also in achieving the tag of a network carrier.
25/06/09 Manisha Singhal/NDTV.com
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