AI Express, SpiceJet and Jet Airways main target operators in India for 737 MAX aircraft: Boeing

New Delhi: Air India Express along with SpiceJet and Jet Airways is one of the three main targets for Boeing in the country as it promotes its new 737 MAX aircraft, which is scheduled to enter commercial operations in 2017.
"SpiceJet, Jet Airways and Air India Express are the three target customers for the new Boeing 737 MAX planes, which already have 737 engines.
"We think this airplane can further enhance (these airlines') profitability," said Dinesh Keskar, Senior Vice- President (Sales, Asia Pacific and India) of Boeing.
The 737 MAX is the latest aircraft from the US-based manufacturer. It comes with winglets that helps reduce fuel consumption by an additional 1.5 per cent.
30/10/13 PTI/Economic Times

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Airline to pay couple for 'arrogant' staff

Margao: The South Goa Consumer Disputes Redressal Forum has directed Jet Airways (India) Ltd to pay over Rs 20,600 as compensation to a passenger couple who complained about hardships faced due to the "arrogant" behaviour of the ground staff.
Margao-based complainants, Vivek Vas and his wife, Zenia Fernandes, booked round-trip Goa-Mumbai tickets with Jet Airways for themselves and their infant child for October 31, 2005 and November 7, 2005.
While their flight to Mumbai was uneventful, at the time of their return they claimed they and their child were put to great hardships and embarrassment by the airline's ground staff.
When they presented their tickets, the original ticket leaf pertaining to the return travel of their child was missing, it contained only a carbon copy.
The complaints claimed that despite repeated requests to the staff to check the correct position of the ticket of their child-in-arms, the ground staff arrogantly required the complainant to purchase another ticket for their child, which was reluctantly purchased to avoid inconvenience to themselves.
28/10/13 daijiworld.com

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SpiceJet, Jet Airways candidates to buy Boeing 737 MAX aircraft

New Delhi: Dinesh Keskar, senior Vice-President of Boeing said today that SpiceJet and Jet Airways are candidates for buying 737 MAX aircraft.
Last year, SpiceJet was in advanced discussions to order 30-40 Boeing 737 MAX aircraft the Centre for Asia-Pacific Aviation (CAPA) had said.
30/10/13 Business Line

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Jet Airways withdraws Bhubaneswar services from today

Bhubaneswar: Jet Airways to withdraw Bhubaneswar services from Monday. Due to heavy loss Jet Airways withdrew all three flights from Bhubaneswar.
Mumbai, Bangalore and Kolkata-bound Jet flights will not be available from Sunday. Jet Airways discontinuing its operations from Bhubaneswar as Bhubaneswar it is commercially a less viable option.
28/10/13 Odisha Dairy

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Jet Airways bets on business class travel again

Mumbai: Jet Airways is reconfiguring its Boeing 737 fleet to add extra business class seats ahead of Tata-Singapore Airlines plans to launch a full service airline. The airline also plans to cut down flights on loss making domestic routes and is stopping  all services to Bhubaneswar as a measure to arrest losses. The airline posted its worst ever consolidated loss of Rs 998 crore for second quarter of the current fiscal.
 Jet Airways and subsidiary JetLite have 70 narow body Boeing 737s of different variants and are flown on domestic routes, Gulf and South East Asia.  Thirteen planes from JetLite fleet and a few planes in Jet Airways fleet  have eight business class seats. These planes will be reconfigured to add four extra business seats thus increasing the premium segment seating.  A few Boeing 737s have 16 and 28 business class seats at present.
 The reconfiguration exercise will happen over the next few months as the airline expects demand growth in business class and improvement in loads due to seasonality factor. Also the move will lead to improvement in yields as a business class ticket is priced four times higher than an economy class ticket. The airline has been unable to achieve a break even in last six months as fares were too low too recover operating costs. Increasing number of business class seats will also help increase the revenue which has remained flat in last two quarters.
26/10/13 Aneesh Phadnis/Business Standard

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Why such huge losses: Jet Airways clarifies

A day after it announced its worst-ever quarterly loss of Rs 998 crore (consolidated figure for Q2 FY14), the top management of India's second-largest airline, Jet Airways, said one-time aircraft maintenance costs and extraneous factors completely outside its control - such as rupee depreciation, increased airport and navigation charges and high aviation jet fuel prices - made their losses mount.
"On the face of it a loss of Rs 891 crore  looks big," said Ravishankar G, CFO, Jet Airways in an earnings call with analysts on Thursday. (He did not quote the consolidated loss figure.) But he explained the various factors beyond the airline's control that added up to hurt it badly. He said that Rs 699 crore out of the total loss posted by the airline was due to the factors Jet could not do anything about.
"Jet incurred a loss of Rs 123 crore in the quarter because of the aircraft being on ground, Rs 213 crore as one-time maintenance costs as some of the engines went to the shop (Indian accounting methods do not allow it to be viewed as an investment), Rs 94 crore due to the fuel rates hike, Rs 38 crore due to increased navigation charges and Rs 231 crore due to the devaluation of the Indian rupee against the dollar," Ravishankar said.
The airline said it was hopeful of getting the last regulatory approval needed to consummate its $600 deal with Abu Dhabi-based carrier Etihad from the Competition Commission of India "soon and definitely by the end of this quarter".
24/10/13 Manisha Singhal/Business Today

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Etihad’s funds may not be enough to save Jet Airways

Jet Airways was obviously not fibbing when it reiterated time and again this year that the equity deal with Etihad Airways is critical to its very survival. The deal is expected to fructify shortly and will see Etihad pump in over $600 million into cash-starved Jet Airways. But will this be enough? Auditors to Jet have made it clear (after Jet posted highest ever losses for the September quarter yesterday) that its continuation as a “going concern” is dependent on funds it receives from Etihad. Even these funds may not be enough to steer Jet out of financial trouble. The first thing that Etihad’s money will do is provide some relief to Jet on paring its debt and reducing servicing costs. It is also expected to help the airline better negotiate suppliers’ contracts. But will it provide adequate working capital cushion and help Jet stem the bleeding? Jet funds subsidiary JetLite’s operations and has itself acknowledged that JetLite’s networth has become negative, which puts in doubt JetLite’s ability to return the loans provided by Jet Airways. Another reason for Jet to worry.
24/10/13 Sindhu Bhattacharya/First Post

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Jet Airways posts highest ever quarterly loss of Rs.891 crore

Mumbai: In a clear sign that aviation business in current operating environment is making airlines bleed and challenging their balance sheet viability, country's second-largest carrier by way of market share Jet Airways Ltd posted its worst-ever quarterly loss of Rs.891 crore.
High air turbine fuel taxation, increase in aircraft lease rentals, short-term borrowings to keep the business afloat and an increase in trade payables has led to Jet's losses sky rocketing from Rs.100 crore in the corresponding quarter of the previous financial year to Rs.891 crore (standalone losses) this year. It has also widened its loss margins on a quarter-on-quarter basis by 51%. Its Q1 loss for this financial year stood at Rs.355.4 crores.
Airline consultancy firm CAPA has projected heavy losses for all airlines for the second quarter. It estimates total losses in excess of $500 million (Rs.30 billion), with LCCs estimated to have lost $120-130 million and full service airlines over $400 million.
23/10/13 Manisha Singhal/India Today

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After deal with Etihad, Jet signals shift in flight plan

New Delhi:While markets have been rife with concerns over the adverse impact of the Jet-Etihad alliance on Air India's international operations, the national carrier may actually gain incremental traffic in the domestic arena. Currently, the country's second largest passenger carrier, Jet Airways, has drawn out a blueprint to connect 23 cities in India to Abu Dhabi to synergise operations with Etihad Airways. Such a business plan, while likely to improve profitability for Jet on international routes, may limit its footprint at home as the planned network expansion is not feasible with the fleet at its disposal.
Jet will require short-haul Boeing 737s to feed the traffic to Abu Dhabi, Etihad's home base and hub. It does have plans to induct 54 aircraft over the next three to five years but the initial demand would have to be met by diverting its existing fleet of 57 such aircraft.
Data available indicate that the shift in Jet's focus from domestic operations has already started to happen. The airline's share in the domestic market fell to 24.6 per cent in September from 26.2 per cent at the start of the year. The reasons for this change in focus are not just operational but also financial. In 2012-13, Jet lost over Rs 1,100 crore in domestic operations but earned around Rs 400 crore on international routes. An overhaul in operational structure, thus, would mean more profits.
23/10/13 Sharmistha Mukherjee/Business Standard

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Jet Airways seeks more time to pay enhanced security deposit

New Delhi: With regulatory clearances yet to come by for Etihad Airways to buy out 24 per cent stake in Jet Airways for over Rs 2,000 crore, the Indian carrier has written to the Airports Authority of India (AAI) seeking extension of deadline till March 31 for paying the enhanced security deposit to the airport operator.
In a communication to AAI, Jet said all airlines were passing through difficult times due to increase in fuel prices and rupee-dollar parity, which had resulted in banks delaying sanction of addition funds.
Jet said when regulatory clearances come through, its financial situation would improve and, therefore, sought an extension of deadline for enhancement of security deposit.
The airline’s board is to meet on October 23 to consider and approve the un-audited financial results of the company for quarter and half year ended September 30.
21/10/13 Business Line

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Jet Airways to take flight to medium-haul overseas routes post Etihad Deal

Mumbai: Jet Airways may shift focus to medium-haul international routes with its margins under pressure in the local market and partner Etihad Airways set to control most of the long-haul traffic in their combined network.
India's second-biggest airline by market share plans to start flights to at least 15 new routes, including locations such as Oman, Muscat, Kuala Lumpur and Guangzhou, said a person close to the development.
It may also look at increasing its current fleet size of 100 aircraft by close to 50%, either by leasing or buying planes, he added.
A Jet spokesperson refused comment. Etihad didn't immediately reply to an emailed questionnaire.
21/10/13 Anirban Chowdhury/Economic Times

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Flyers to Chandigarh offloaded from overbooked flight

Mumbai:  For some flyers, a cricket match in a non-metro can be like bad weather. It can ruin travel plans like it did on Saturday when over 20 passengers booked on a Jet Airways Mumbai-Chandigarh flight were offloaded.
The airline had overbooked in response to the spike in demand brought on by the India-Australia match played in Mohali. That is the latest lesson of the season.
If one is travelling to a non-metro on a weekend or during peak travel months and if there is a cricket match or another crowd-pulling event at the destination one is flying to, then it is prudent to reach the airport as early as possible.
20/10/13 Times of India

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Jet flight reaches Bhopal 7 hrs late

Bhopal: A Bhopal bound Jet Airways flight from Delhi reached Bhopal seven hours late on Saturday. The flight was delayed because of two emergency landings at the Delhi airport, sources claimed. The flight reached Bhopal around 3 pm, which was scheduled to reach here about 8 in the morning.
20/10/13 Times of India

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Close to the clousure of the deal, top executives from Etihad may join Jet by year-end

Mumbai: At least four executives from Etihad Airways are likely to assume key positions in Jet Airways by the end of year, close to the closure to the first FDI deal in Indian aviation after the sector was opened up for investment from foreign carriers last year.
The executives are Willy Boulter, who is currently vice-president commercial strategy and planning at the Abu Dhabi-based carrier, Renyl Rauf, senior manager, mergers and acquisitions, Rangesh Embar, vice-president finance and Rajeev Nambiar, head of sales.
A person close to the development told ET that Boulter already partly operates out of Jet's corporate office in suburban Mumbai. Boulter, the person said, may be considered as Sudheer Raghavan's successor as Jet's next chief commercial officer.
17/10/13 Economic Times

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Etihad pilots management changes at Jet Airways

Mumbai: Etihad Airways is steering organisational revamp in Jet Airways, in which it is set to acquire 24 per cent stake. Two senior Etihad executives are likely to join the Jet Airways management team, in an apparent indication of the Abu Dhabi-based airline’s control over Jet.
Sources said Rajeev Nambiar, sales head of Etihad, is likely to replace Sonu Kripalani, Jet’s vice-president(sales), who is expected to take up another position within the organisation. In another move Willy Boulter, Etihad’s vice-president (commercial and network planning), is likely to take over as Jet’s chief commercial officer, replacing Sudheer Raghavan. Sources say Raghavan is leaving the organisation, as his powers and responsibilities are being curtailed.
Etihad earns about 23 per cent of its passenger revenue from code-share and equity partners, and this would increase after its tie-up with Jet. In the past few months, the Naresh Goyal-controlled Jet has seen resignations of a few senior executives, as well as changes in its organisation structure.
17/10/13 Aneesh Phadnis/Business Standard

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Withhold nods to Jet Airways, Etihad Airways and Air Asia deals: Subramanian Swamy

New Delhi: BJP leader Subramanian Swamy today asked the government to put on hold the clearances given to the Jet Airways, Etihad Airways deal and to AirAsia India's JV with Tata Sons until the courts gave their final verdicts on them.
"I am unable to comprehend why there is such a hurry to rush through these two deals following the issuance of notices" by Supreme Court and Delhi High Court, Swamy said in a letter to Prime Minister Manmohan Singh.
He said the government should wait for two more months in public interest as by then the courts would have heard the matter fully and delivered their judgements.
"The two deals are under judicial scrutiny, which could be stayed when the Stay Application is considered on October 30. Notices have been issued for that purpose which have been received by your government," he said.
12/10/13 PTI/Financial Express

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AWDC Strikes a Discount Deal With Jet Airways

Rapaport: The Antwerp World Diamond Centre (AWDC) and Jet Airways signed a memorandum of understanding, to provide the Antwerp diamond industry with discounts from 10 percent to 50 percent for flights to India (Mumbai and New Delhi) and other destinations such as New York, Toronto, Singapore, Hong Kong and Bangkok. Jet Airways is the only airliner that offers daily and direct flights to Mumbai, the AWDC stated.
Antwerp's diamond firms can realize discounts through authorized agencies such as HRG, Blitz Travel, Translloyd, Weinberg and Omnia Travel Antwerp.
11/10/13 Jeff Miller/Diamonds.net

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Cyclone Phailin: Jet Airways and IndiGo cancel flights to Bhubaneswar

Mumbai:  Indian carriers such as Jet Airways and IndiGo have cancelled all flights to Bhubaneswar after warnings of a massive cyclone about the hit the Odisha coast on Saturday evening.
India's biggest carrier by marketshare operated morning flights to the capital city but will cancel its evening flights.
"Due to Cyclone Phailin, the airport in Bhubaneswar is closed and hence, our services to and from Bhubaneswar has been disrupted," Jet Airways said in a notification on its website.
12/10/13 Anirban Chowdhury/Economic Times 

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Jet Airways to cut fares for ‘Nitaqat’ passengers

Riyadh: Jet Airways is offering a 10 percent discount on fares in its economy class to all of its Indian destinations from Riyadh starting on October 16 until November 30, the airline said on Thursday.
The discounted fair is primarily aimed at helping the people going home under the Nitaqat program, it added.
“Nitaqat” passengers have to contact the Jet Airways ticket office at Olaya Main Street in Riyadh with their emergency document to avail the scheme.
10/10/13 Saudi Gazette

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Passengers sit in plane for 9 hrs

Chennai: It was an ordeal for 163 passengers on board Jet Konnect flight from Chennai to Port Blair as the aircraft made an unscheduled landing at Bangkok airport instead of Port Blair before returning to Chennai, thereby making the passengers stay onboard for more than nine hours on Tuesday.
Airport sources said the flight from Chennai departed at 10.15 am Tuesday and was scheduled to land at the island’s airport at 12.15 pm. But due to heavy rains between 12 noon and 1 pm, the plane was diverted to Bangkok. After refuelling, the aircraft left Bangkok at 4.30 pm and reached Chennai around 7.30 pm.
“It was a bad trip for my father. He was on his way back to the island after a private visit to our native place in East Godavari district in Andhra Pradesh. He is 58 years old and making him sit on board the plane for more than nine hours is a horrible thing,” said Arun Reddy (name changed) from Port Blair.
09/10/13  S. Sujatha & P.A. Jebaraj/Deccan Chronicle

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