The Hindu Business Line : Jet Airways betting on international traffic

Cargo, now a small component of its revenue source, will come into its own with the acquisition of wide-bodied machines. It could be spun-off into a separate division or a partner could be inducted to form a joint venture, according to Mr Peter Luethi, Chief Operating Officer, Jet Airways.

Sharing some of its plans at a press conference, he said Jet Airways would be an "international carrier with a strong domestic base."

It plans to be a $3-billion company by 2008-09 with a fleet strength of over 80 aircraft. It would also be a full service airline and "there is no intention of a low-cost mode in Jet Airways brand." It would cater to the high yield customer with a "good value price relation," he said.

To focus on metros: In India, where it has a market share of over 45 per cent, it would strengthen its traffic in the metros — target at least same day return with other cities — and link all major tourist destinations. In two years, it would add twelve 737s — 10 through purchase and two by way of lease. It would maintain its leadership in this competitive market, Mr Luethi said.

Spreading its wings: On the expansion to international destinations, he said after its maiden flight to Singapore from Chennai on Wednesday, it is looking at another from Delhi.

But its plans extend beyond the South East. It has two daily flights to London from Delhi and Mumbai and a third will be introduced from May-June next, linking more destinations in the UK. Jet Airways will also branch out to Brussels, France, Germany and the Americas, he said.

In Asia, it will link Thailand, Hong Kong and China, and in Africa, the South and the East. West Asia, which is closed to private players under the current policy in India, would be a target when it is opened up in a few years' time.

Expansion plans: Expansion to new destinations would be driven by acquisition of wide-bodied aircraft which its board has approved — the first of the twelve A330s will arrive in May 2006 and more during 2007-08.

Another 10 Boeing 777s would join the fleet from the second quarter of 2007 and there is an option of 10 additional aircraft. In 2009, it would have a fleet of 83-84 aircraft, Mr Luethi said.

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