Jet Airways to tap ancillary revenue

Mumbai: Jet Airways plans to increase ancillary revenue by charging passengers for preferred seats and increasing on-board sales, as the airline continues to make huge losses due to high fuel costs.
It also plans to reduce ticket distribution costs by 100-200 basis points by restructuring agents’ commissions and by levying a surcharge on its Delhi flights because of increase in airport fees, senior company executives told analysts.
Globally, airlines made $32.5 billion from ancillary revenue in 2011, with those in America accounting for the highest share. For some, share of ancillary revenue is 18-20 percent of total revenue and for some, it is a modest two to five per cent. It is less than two per cent of Jet's revenue and it now hopes to join the ranks of airlines with a high share.
Jet posted a loss of Rs 354 crore on a consolidated basis in the fourth quarter of 2011-12, a rise of 77 per cent over the same period last year.
26/05/12 Business Standard

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Categories: Jet Airways May 2012