Jet, Eti­had re­in­force pledge to growth of In­dian avi­a­tion

The Political and Business Daily - - CORPORATE - PBD BUEAU/PTI

JET AIR­WAYS and Abu Dhabi-based Eti­had Air­ways have out­lined plans to re­in­force their long-term com­mit­ment to the growth of In­dia's econ­omy and avi­a­tion in­dus­try, in­clud­ing a ma­jor new turn­around strat­egy for Jet Air­ways to re­turn to prof­itabil­ity in three years, it has been an­nounced.

The two air­lines have been code­share part­ners since 2008 and their re­la­tion­ship was strength­ened in Novem­ber 2013, af­ter Eti­had Air­ways re­ceived ap­provals to ac­quire a 24 per cent stake in Jet Air­ways, mark­ing it the first in­vest­ment by a for­eign car­rier in In­dia's air­line in­dus­try.

The wide-rang­ing part­ner­ship has nu­mer­ous ad­van­tages for trav­ellers, in­clud­ing en­hanced con­nec­tions across the world through an ex­panded code­share agree­ment, re­cip­ro­cal 'earn and burn' rights and tier level recog­ni­tion on the JetPriv­i­lege and Eti­had Guest fre­quent flyer pro­grammes, said a re­port.

Jet Air­ways and Eti­had Air­ways also stand to ben­e­fit from cost sav­ings and syn­er­gies in ar­eas such as fleet ac­qui­si­tion, main­te­nance, prod­uct devel­op­ment and train­ing, it said.

They con­tinue to explore col­lab­o­ra­tive pur­chas­ing op­por­tu­ni­ties for fuel, spare parts, in­sur­ance and tech­nol­ogy sup­port, it added.

Sup­port­ing the part­ner­ship, the Jet Air­ways Board re­cently ap­proved a three-year busi­ness plan to re­shape the air­line and se­cure its long-term fu­ture.

The plan in­cor­po­rates a se­ries of crit­i­cal mea­sures for lay­ing the foun­da­tions for a re­turn to prof­itabil­ity, in­clud­ing long-term net­work, and fleet and prod­uct de­vel­op­ments to op­ti­mise the air­line's do­mes­tic and in­ter­na­tional op­er­a­tions.

Fo­cus ar­eas for in­ter­na­tional op­er­a­tions will in­clude net­work de­vel­op­ments, in­clud­ing new ser­vices to mar­kets such as Europe, China, Aus­tralia and South­east Asia, ex­panded fre­quen­cies to ex­ist­ing routes and ad­di­tional code­shares.

Jet Air­ways' two and three class air­craft prod­uct will also be en­hanced and the seat count op­ti­mised on wide-body Boe­ing 777 and Air­bus A330 air­craft, the re­port said.

In ad­di­tion, the do­mes­tic busi­ness model is aimed at im­prov­ing con­nec­tiv­ity across In­dia and world­wide, while re­mov­ing com­plex­ity in prod­uct and fleet, in­clud­ing the stan­dard­i­s­a­tion and re­con­fig­u­ra­tion of the Boe­ing 737 fleet.

To ini­ti­ate the three­year turn­around plan, the Jet Air­ways Board and man­age­ment team have al­ready worked with au­di­tors to clean up its bal­ance sheet and write down over­val­ued non­cash as­sets.

Jet Air­ways has an­nounced a new team at the helm with Cramer Ball as its new Chief Ex­ec­u­tive Of­fi­cer and Su­bodh Karnik as the Chief Op­er­at­ing Of­fi­cer pend­ing reg­u­la­tory ap­proval.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.