Low-cost carriers force Jet to pitch for new routes

As a string of low-cost carriers from West Asia and South-East Asia make a beeline for the lucrative Indian market, the country's largest airline Jet Airways is getting jittery. In a recent presentation to the civil aviation ministry, the airline sought new routes in the international sector, notably in Europe and South-East Asia.
Jet Airways chairman Naresh Goyal flew down to Delhi and shared his airline's future growth plans with the ministry. Goyal is believed to have asked the ministry to grant it rights to fly to Paris. The proposal was shot down by the ministry as the national carrier Air India already flies on that route.
The airline sought permission for providing connectivity to three-four points in Europe. These points could be Paris, Rome, Amsterdam and Milan, said an aviation expert. The carrier operates an international hub in Europe at Brussels and its international operations accounted for 56 per cent of total revenues for April-June 2010-11.
In its medium-term expansion plan, the carrier may be looking at getting a foothold in the North American cities of San Francisco, Los Angeles and Chicago, a source revealed. Jet Airways already operates code-share flights with American Airlines to Chicago. "The airline may start these routes in the next fiscal year, 2011-12, as it fits with its expansion plans," the source added. Its international operations achieved record seat factor of over 80 per cent in Q1 2010-11, continuing to post healthy operating margins. The inroads into the Indian market made by the recent entry of low-cost carriers like Malaysia's Air Asia and UAE's Air Arabia have added to Jet's woes. It has asked the ministry to grant it additional rights to fly to newer destinations in the region like Manila.
25/08/10 Smita Aggarwal/msn.com

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Categories: Foreign Aug 2010, Jet Airways Aug 2010, Low Cost General Aug 2010