Jet Airways problems

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This topic contains 15 replies, has 8 voices, and was last updated by  AMcWhirter 23 Nov 2018
at 14:48
.

Viewing 15 posts - 1 through 15 (of 16 total)

  • Tom Otley
    Keymaster

    Report in Reuters today

    India’s Jet Airways warns staff time and funds are running out – source

    India’s biggest full-service carrier Jet Airways Ltd (JET.NS) has told its pilots the airline may be grounded in 60 days unless cost-cutting measures including pay cuts are put in place, a senior company executive told Reuters on Friday.

    The company, part owned by Etihad Airways, had net debt of 81.5 billion rupees (£910.85 million) as of end-March with the bulk of it being U.S. dollar denominated.


    travelworld2
    Participant

    Everything Etihad touches seems to end up in a mess…


    EUFlyer
    Participant

    Suspect everyone (Etihad included) never thought the money would run out. Previous management’s strategy was good in theory but perhaps naive in how easy (and expensive) it would be to turn airlines like Air Berlin and Alitalia around. Jet Airways seems to be bleeding like they did – not a good sign.


    MarkivJ
    Participant

    Very sad. I like Jet. And I thought they were doing well what with the Skyteam and VS codeshares and all.


    GivingupBA
    Participant

    Anyone got tickets on Jet Airways? Sorry to say this but if I did, I would immediately cash them in after reading that report. I have seen too many airlines go bust. When Hong Kong Oasis Airlines went bust, a family I knew were holding more than HK$40,000 worth of tickets on Oasis for a family holiday. They never got the money back. What really got me was that THE DAY OASIS WENT BUST, they were STILL taking bookings – and money – as investigated by the Hong Kong media shortly afterwards.

    Too bad about Jet, I heard good things about them.


    AMcWhirter
    Participant

    Better news from Reuters today is reporting that “Jet Airways confident in prospects …”

    https://in.reuters.com/article/jet-airways-costs/jet-airways-confident-in-prospects-despite-reports-cash-running-out-idINKBN1KO0EB

    In any case Jet Airways intends to go ahead with its new Mumbai-Manchester service from November 5. There will be five weekly flights. The route remains subject to govt approval but I can hardly see the UK govt refusing.


    rferguson
    Participant

    I’m pretty sure there was a period a few years ago when Jet was in dispute with their staff in India as they hadn’t been paid for months?

    It’s a shame really. Jet had an excellent reputation for onboard service – hard and soft product – which reading reviews online seems to have been cut back to the bone.

    They had lofty ambitions for an extensive long haul network too with a european hub (Brussels originally) between India and North America.

    Unfortunately many of their services eastbound from India that were being operated by very comfortable A330’s ended up being downgraded to B737 aircraft with more traditional J seating and the A330’s were then leased out (I flew one LHR-IST on TK recently).

    Will be interesting to see what happens. Surely there is room for two full service international airlines based in India, especially as Air India despite it’s never ending supply of government bail outs still has a rather limited international network.

    It wasn’t all that long ago that another indian carrier offering an excellent onboard service went bust. Kingfisher was great. I flew them once and they were truly excellent.

    I guess the Indian carriers just cannot compete with the Middle Eastern mega carriers. The Indian carriers are in the exact same situation many other airlines around the world are in – the homebase carriers offer little competitive advantage in serving the ‘non hub’ airports. For example, if someone wants to fly from Cochin or Chennai to Seattle with EK they can do it one stop. A home grown carrier would require two. No different to someone in the UK wanting to fly NCL – BKK. Or someone in Australia flying ADL – LHR.


    AMcWhirter
    Participant

    rferguson – Jet Airways is fighting back against the Gulfies. It has JVs with AF/DL/KL/VS via Europe which provides pax with many routings to Europe itself and to N America.

    Delta, Virgin Atlantic and Jet Airways announce new codeshare agreement

    With the payment of staff salaries I wonder if you mean Kingfisher (rather than Jet).

    https://www.businesstoday.in/sectors/aviation/how-vijay-mallya-plans-to-pay-pending-salaries-to-former-kingfisher-airlines-employees/story/279573.html

    https://www.business-standard.com/article/companies/mallya-s-kingfisher-airlines-owes-rs-300-cr-to-3-000-unpaid-employees-117042100067_1.html


    MarkCymru
    Participant

    Jet’s problems are that it is getting squeezed on all sides. Vistara (the new SQ – Tata joint venture) is a better full-service domestic carrier and, being co-owned by one of India’s biggest companies, gets lots of guaranteed traffic. (It will soon have been trading long enough to get international rights). Indigo is an excellent LCC (albeit that I hate the sexist way they treat flight attendants) and GoAir is a highly-competitive ULCC. Then Jet has the Gulf carriers taking most of their westbound international business. Finally, Air India gets forkfuls of government money and I know it’s a miniority view, but I find it quite good and excellent value.


    AMcWhirter
    Participant

    Tom Otley
    Keymaster

    Competitive pricing out of Manchester for this route.

    Dear Mr. Otley,
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    Starting Nov 5, 2018, we’re introducing 5 weekly, non-stop flights from Manchester to Mumbai. From Mumbai’s state-of-the-art Chhatrapati Shivaji Maharaj International Airport, Terminal 2, enjoy seamless connectivity to 44 destinations within India and beyond to Singapore, Colombo, Dhaka and more.
    To celebrate the launch of our new flight, we have some exclusive, limited period deals for you.

    Attachments:

    Tom Otley
    Keymaster

    More route cuts, though Europe seems safe at the moment

    India’s Jet Airways to cut flights on some routes after further losses

    Debt-laden Indian carrier Jet Airways Ltd will cut flights on less profitable routes and add capacity to more lucrative markets, as part of its effort to lower costs and boost revenues as it struggles to stay aloft

    Statement from the company

    Jet Airways’ board accelerates turnaround strategy
    Airline improves operational performance

    Non-fuel CASK stays flat, despite macroeconomic challenges

    Mumbai: November 12, 2018

    …The airline has embarked on a comprehensive review and consolidation of its network involving routes and markets, as well as products and services offered. The strategy includes concentration of capacity, enhancing frequency, density and hub connectivity. The measures will include rationalisation of operations on select, uneconomic routes and the redeployment of these assets to more productive and economically efficient international as well as domestic sectors, closely aligning capacity with the demand characteristics of specific markets.

    With the induction of the state-of-the-art B737 MAX progressing as per schedule, 11 of which are expected to be inducted in its fleet during this fiscal, Jet Airways will leverage the fuel efficiency and longer range of its existing and forthcoming MAXs to replace those with higher operating costs on both domestic and international sectors. As a part of this network consolidation, the overall scale of operations (ASKMs) however, will continue at the same level as the airline currently operates. The airline is launching 3 additional services to Singapore from Mumbai, Delhi and Pune, and in early November, commenced its operations to Manchester from Mumbai. The airline will also launch additional frequencies between Delhi – Bangkok, Mumbai – Doha, Delhi – Doha, Mumbai – Dubai and Delhi – Kathmandu during the winter schedule.


    AMcWhirter
    Participant

    Jet Airways axing six routes to the Gulf from regional points.

    https://www.routesonline.com/news/38/airlineroute/281552/jet-airways-discontinues-6-middle-east-service-in-dec-2018/

    Other cuts may follow.


    Tom Otley
    Keymaster

    Message sent out to Jet Privilege members

    Dear XXXX

    Last week we declared our Q2 results for FY 2019. The tough operating environment for the aviation industry continues to impact us, and we reported a net loss of INR 1,261 crores.

    Despite this, we have registered encouraging growth in key operating metrics including ASKMs (Available Seat Kilometers) and RPKMs (Revenue Passenger Kilometers) in the quarter. Our average load factor rose 2.5 percent to 84 percent, ancillary revenue grew by 10 percent and cargo revenues increased by over 13.7 percent over Q2 FY18. Even as the domestic market RASK (Revenue per Average Seat Kilometer) showed a decrease, we managed to sustain our RASK due to our strong presence in the international market as well as our loyal corporate customer base.

    Reflecting on our ongoing efforts to reduce costs across the business, our relentless efforts to optimise costs have yielded over INR 500 crores of savings in the first half of FY 2019.

    We have reviewed our network and are deploying aircraft on more profitable, productive and economically efficient routes. With the peak season upon us, I am optimistic about our ability to build and accelerate revenue momentum even as we continue to review and improve our network.

    Jet Airways will take delivery of another 6 new Boeing 737 MAX aircraft this fiscal and will leverage the same for better cost efficiency. We have launched new services such as the Mumbai – Manchester non-stop flight and will soon be inaugurating our first daily, direct service from Pune to Singapore, as well as adding services and frequencies on select routes such as Bangkok, Doha, Dammam, Dubai, Kathmandu and Singapore from our hubs.

    At the same time, we continue to maintain a steadfast focus on reliability and safety. At 88 percent, our on-time performance is the highest it has been in the last three years. The nil findings in the last IATA Operational Safety Audit as well as our DGCA audit clearance over the last couple of months testify to our commitment to safety, which we have always asserted will be sacrosanct for Jet Airways.

    We are in active discussions with various investors to secure sustainable financing to navigate through the current headwinds and create long-term growth. There is interest in our strong brand and confidence in our business turnaround efforts.

    Your continued support is important to us. I feel privileged to have you as our valued guest as we navigate through these challenging times and work towards our long term growth and profitability.

    Over the past 25 years, it has been our constant endeavour and privilege to have taken India to the world and you have helped us every step of the way to make that dream a reality by choosing us as your preferred carrier.

    I would like to personally thank you for believing in and supporting us as we tide over these trying times.
    Warm regards,

    Vinay Dube,
    Chief Executive Officer

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