Jet expects revenue to top Air India's, eyes second European hub
Friday September 12, 2008
Jet Airways CEO Wolfgang Prock-Schauer is expecting another loss in the current financial year but believes the carrier will pass Air India in terms of revenue for the 12 months ending March 31, 2009, to become India's leading airline.
All of India's carriers are under pressure owing to overcapacity and fare-cutting as well as high fuel prices. They collectively lost an estimated $1 billion for the financial year ended March 31. Talking with ATWOnline this week at the Austrian Aviation Assn.'s international symposium, Prock-Schauer noted that India's airlines have reduced capacity by 15% this year. "I believe just three big carriers, Jet, Air India and Kingfisher, and maybe two LCCs will survive," he said.
Jet, which lost $100 million on $2.3 billion in revenue for the year ended March 31, does not expect to be profitable in the current fiscal year. "I can't give more details regarding the financial performance outlook, but we will operate all routes and have no plans to stop our international expansion," he said. Additionally, "for the current business year we will produce a turnover of $4 billion. . .that will make us the leading airline in India," he claimed.
He said Jet has reached its target of 50% domestic/50% international routes. The carrier will start a new Bangalore-Brussels service in October. Besides its current European hub in Brussels, it is considering a second hub in Germany, northern Italy or Austria. "With our second delivery wave of new widebodies, five 777-300ERs and five A330-200s, between 2009 and 2011, we will extend our [presence] in Europe and need a second hub," he said.
Jet also is considering operating to destinations in Africa and increasing its presence in Asia. "Indian airports' infrastructure is improving and that gives us the possibility by 2010 to be able to offer our [Indian] hubs as international transfer points, like between Europe and the Far East," Prock-Schauer commented.
The carrier plans to take delivery of two A330s this year to be used for flights between India and Saudi Arabia. It will take delivery of 10 737NGs for its JetLite subsidiary and 20 737NGs for the mainline over the next several years. It transported 14 million passengers including 3 million JetLite passengers in the year ended March 31 and is expecting a 15% increase in total passengers for the current year.
by Kurt Hofmann
ATWonline
Friday September 12, 2008
Jet Airways CEO Wolfgang Prock-Schauer is expecting another loss in the current financial year but believes the carrier will pass Air India in terms of revenue for the 12 months ending March 31, 2009, to become India's leading airline.
All of India's carriers are under pressure owing to overcapacity and fare-cutting as well as high fuel prices. They collectively lost an estimated $1 billion for the financial year ended March 31. Talking with ATWOnline this week at the Austrian Aviation Assn.'s international symposium, Prock-Schauer noted that India's airlines have reduced capacity by 15% this year. "I believe just three big carriers, Jet, Air India and Kingfisher, and maybe two LCCs will survive," he said.
Jet, which lost $100 million on $2.3 billion in revenue for the year ended March 31, does not expect to be profitable in the current fiscal year. "I can't give more details regarding the financial performance outlook, but we will operate all routes and have no plans to stop our international expansion," he said. Additionally, "for the current business year we will produce a turnover of $4 billion. . .that will make us the leading airline in India," he claimed.
He said Jet has reached its target of 50% domestic/50% international routes. The carrier will start a new Bangalore-Brussels service in October. Besides its current European hub in Brussels, it is considering a second hub in Germany, northern Italy or Austria. "With our second delivery wave of new widebodies, five 777-300ERs and five A330-200s, between 2009 and 2011, we will extend our [presence] in Europe and need a second hub," he said.
Jet also is considering operating to destinations in Africa and increasing its presence in Asia. "Indian airports' infrastructure is improving and that gives us the possibility by 2010 to be able to offer our [Indian] hubs as international transfer points, like between Europe and the Far East," Prock-Schauer commented.
The carrier plans to take delivery of two A330s this year to be used for flights between India and Saudi Arabia. It will take delivery of 10 737NGs for its JetLite subsidiary and 20 737NGs for the mainline over the next several years. It transported 14 million passengers including 3 million JetLite passengers in the year ended March 31 and is expecting a 15% increase in total passengers for the current year.
by Kurt Hofmann
ATWonline
