Monday, December 20, 2010

Jet Airways seeks rail service deals in Europe to expand its presence

New Delhi: In a first for any Indian carrier, Jet Airways (India) Ltd plans to strike deals with European railway operators to let passengers reach destinations its air network doesn’t cover.
Foreign airlines such as Lufthansa, Air France SA, Emirates and Continental Airlines Inc. already have such arrangements with railway firms, allowing passengers to carry on with their journey by train after a flight, or vice versa, on a single ticket. The concept is particularly popular in Europe.
Jet Airways has sought the civil aviation ministry’s approval to sign such agreements before it approaches European governments for similar clearances, said a government official, requesting anonymity.
“It’s a first, so no one really knows how will they run it,” the official said. The approval is yet to be given.
A senior Jet Airways executive confirmed the airline was looking “at that option,” but declined to give details.
An analyst said the move will benefit the airline.
“It helps expand the airline’s network into suburban and outlying towns that are not served by air, and is sold as an add-on to the flight,” said Vikram Krishnan, associate partner with New York-based consulting firm Oliver Wyman Group. Krishnan said Continental Airlines in the US has a similar tie-up with the rail service Amtrak to take passengers from its Newark hub to cities such as Philadelphia.
20/12/10 Tarun Shukla/Live Mint
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