Private carrier Jet Airways will be converting about 70 per cent of it overall fleet size into its low-cost arm, Jet Konnect, company officials said. It's also planning a fare hike by the end of the year.
“At present one-third of our overall fleet is being used for Jet Konnect but we plan to convert two-thirds of it to Jet Konnect by October,” said K G Vishwanath, Senior General Manager, MIS & Investor Relations. Jet’s AGM was held at the carrier’s Mumbai headquarters on Monday. According to Vishwanath, the carrier is also looking towards re-leasing its Boeing 777s whose leases are about to be expired in the near future. Of the 10 Boeing 777s that Jet currently has, seven have been leased out to different carriers (four to Gulf Air and three to Oman Air) from which Jet earns about $2.2 million annually, sources said. “The carrier is also looking at a price hike by end of this year, although the quantum of the price hike has not yet been decided,” a Jet Airways official said not wishing to be named.
Officials said that the carrier’s chairman Naresh Goyal emphasised on reduction in input costs and as a result a renegotiation of contracts with the airline’s vendors. Jet’s reported annualised figures mentioned costs savings of between Rs. 350-400 crore for financial year 2008-09 and the carrier is currently aiming at reducing its input costs by Rs. 300 crore for the current financial year.
A Jet official also said at present if the number of combined seats being sold under the Jet Airways and JetLite brand are to be taken into consideration then the figure is already touching the 70 per ent mark.
The carrier has a total fleet size of 85 aircraft. It had launched Jet Konnect in May this year with a capacity of 20 per cent of its overall existing seats (excluding JetLite). The airline has dedicated two of its 175 seater Boeing 737-800 and six ATRs to initiate initial operations with Jet Konnect.
The carrier has a total fleet size of 85 aircraft. It had launched Jet Konnect in May this year with a capacity of 20 per cent of its overall existing seats (excluding JetLite). The airline has dedicated two of its 175 seater Boeing 737-800 and six ATRs to initiate initial operations with Jet Konnect.
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