Mint excl: Jet Airways, FedEx in talks for cargo biz

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Mint excl: Jet Airways, FedEx in talks for cargo biz

Jet Airways is in initial talks with Fedex Corporation for launching cargo business, reports CNBC-TV18, quoting Mint. The company is looking at a joint venture or alliance with Fedex.

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Excerpts from India Business Hour on CNBC-TV18 Watch the full show » RELATED NEWS Aviation Budget '10 wishlist: Focus on air traffic control Tax dispute: Sahara ready for settlement with Jet Airways ALSO READ See latest News about Jet Airways See previous management interviews See what other Experts & Brokerages are saying about Jet Airways

Jet Airways is in initial talks with FedEx Corporation for launching cargo business, reports CNBC-TV18, quoting Mint. The company is looking at a joint venture or alliance with FedEx. When contacted, the spokespersons of Jet, FedEx say they were unaware of both companies being in talks for a cargo venture. Jet had planned to launch its cargo business with Deutsche Lufthansa AG.

Meanwhile, low-cost carrier GoAir may relaunch its cargo services under the brand name GoCargo. The company had discontinued its cargo services last year.

Kingfisher Airlines had launched its cargo delivery services on February 2.

In an interview with CNBC-TV18, PR Sanjai of Mint, who broke the story, spoke about the possible Jet-FedEx alliance.

Below is a verbatim transcript of the interview. Also watch the video.

Q: Take us through the details of this new venture from Jet Airways and what's triggered this move?

A: Jet Airways promoter Naresh Goyal always wanted to start a dedicated freighter operation and in 2007 he was talking to Lufthansa Cargo but that couldn't take off. After dropping Lufthansa Plans, Jet Airway's original plan was to start on its own but again that couldn't materialize. Now with the domestic economic reviving with a lot of passengers back onboard, Naresh Goyal is restarting his plans to start up dedicated freighter. 

Now he is in talks with FedEx for a different dedicated cargo airline project. He wanted to make his airline as integrated logistic players, which would offer actually door-to-door services to all customers. Incidentally, Kingfisher Airline, the rival carrier to Jet Airways, has recently started a door-to-door service, which will be there at least in 20 cities.

Q: Have both sides confirmed this and what are they saying when you contacted them?

A: We were trying to reach out to Jet Management and FedEx but the spokespersons clearly telling that they are not aware of any such development. But we had sources telling us that already initial talks have been done and though it has knot been formalized to what kind of deal it would be - whether it would be a joint venture or an alliance or what kind of a plane they would be using - but the discussion has started.