Jet moves to cut costs

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Faced with a loss of Rs 45 crore during the first quarter ended June 30, Jet Airways has announced a number of initiatives to reduce costs.

Addressing a press conference, the Chief Executive Officer, Mr Wolfgang Prock-Schauer, said the airline would look at cutting back on the number of reduced rate tickets available during the peak season and enhancing sale of tickets on the Web apart from renegotiating rates with aviation turbine fuel suppliers. Jet Airways cited pre-tax losses on its start-up international operations and increase in fuel and input costs for the losses.

The CEO replied in the negative when asked whether the proposed daily non-stop flight between Delhi and Singapore and the recently launched non-stop flight between Amritsar and London would further affect the airline's financial health.

"The flights that we operate to the Asean and the SAARC regions are profitable. The other long-haul flights are recent start-up and hence loss making at present. However, within six months to a year of starting the flight, the airline will turn them into profitable operations," Mr Prock-Schauer added.

The airline on Thursday announced that it would start a daily service between Delhi and Singapore from September 6. Jet plans to operate a specially modified Boeing 737-800 aircraft that can carry 140 passengers, including 16 in business class. The airline already operates regular flights from Chennai and Mumbai to Singapore.

Code share with Qantas

Further, to provide greater connectivity for passengers between India and Australia, Jet Airways has entered into a code share agreement with Australian airline Qantas. The tie-up will allow passengers from at least five Australian cities including Perth, Adelaide and Sydney to connect with the Jet Airways flight from Singapore to Delhi.

Aircraft buys

With the airline scheduled to take delivery of 20 wide-body aircraft from April next year, Jet Airways intends to start operations to the US and Canada, and expand services to the UK and the ASEAN region apart from flying to select destinations in Africa and launching service to China.

"We plan to start flights to the United States from next summer. From winter this year, we plan to have flights from Delhi and Kolkata to Bangkok," said Mr Prock-Schauer.

Taken from Business Line

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