Category Archives: Jet Airways

Jet Airways’ board accelerates turnaround strategy

Jet Airways Boeing 777-35R ER VT-JEX (msn 35163) LHR (SPA). Image: 941772.

Jet Airways made this announcement:

The Board of Directors of Jet Airways met on November 12 to assess and announce the Company’s financial results for the second quarter of FY19, based on the recommendation of the Audit Committee. The Board also reviewed the progress of the Company’s turnaround strategy outlined last quarter, together with an update on the success of other parallel measures being undertaken by the management to revive the economic health of the Company.

The tough industry environment in the backdrop of a sharp rise in Brent fuel price by more than 50% over Q2 FY18, a depreciating rupee and a challenging pricing situation in an over-capacitated domestic market, continued to undermine Jet Airways’ performance for the quarter, which reported a consolidated net loss of INR 1,261 crores for the period ended 30th September 2018, in comparison to a net profit of INR 71 crores in Q2 FY18. For the period July to September 2018, the airline reported an EBITDAR of INR 239 crores versus an EBITDAR of INR 1,084 crores in Q2 FY18.

Despite the above, the airline demonstrated progress on its business and operating fundamentals, registering a 7.3% growth in Available Seat Kilometres (ASKMs) over Q2 FY18, and a 10.5% growth in Revenue Passenger Kilometres (RPKMs), flying 7.45 million guests – up by 2.2% from Q2 FY18. In spite of currency devaluation, Jet Airways managed to maintain its non-fuel CASK for the quarter at almost the same level as last year (Q2 FY18), and in fact, excluding the foreign exchange impact, the CASK is better by 4.2% versus last year (Q2 FY18), reflecting the organisation’s efforts to reduce costs across its entire business spectrum.

Productivity and efficiency gains for the quarter yielded significant enhancements in operational statistics, improving the airline’s On-time performance to 84% (up 11 notches) than Q2 FY18. Similarly, average load factors increased by 2.5% to 84%, ancillary revenues grew by 9%, and cargo revenues increased by over 13.7% over Q2 FY18. In addition, yields from Cargo also registered an impressive YoY increase.

At the strategic level, the Company remains committed and is on track to realize most of the outcomes that were outlined as part of its turnaround strategy last quarter, including cost savings in excess of INR 2000 crores over the next two years via strategic initiatives in the areas of sub-fleet simplification, reduction of maintenance as well as selling and distribution expenses, renegotiation of contracts, together with a more productive resource deployment geared to enhance profit and revenue. In fact, the company has already realized cost saving of over INR 500 crores to date (in H1FY19).

Simultaneously, Jet Airways is exploring further opportunities to enhance revenues by undertaking several calibrated steps to improve yields in the domestic market, fine tune revenue management practices and use the advantages of connectivity over its hubs to improve volumes. At the same time, the airline is actively engaged in realising improvements in revenue in the international markets by leveraging the strengths and synergies of its network and alliance partners.

During the quarter, Jet Airways also expanded its codeshare cooperation with international partners such as Delta Air Lines, Etihad Airways, Korean Air, Malaysian Airlines, and Bangkok Airways delivering incremental growth and choice for its guests. Revenues from codeshare and interline guests for Q2 FY19 rose by 30.9% even as guest numbers grew by 8.6% on a YoY basis.

Notwithstanding the above measures, Jet Airways is undertaking a series of initiatives with a view to enhance economic viability, efficiencies and productivity to ensure the longterm health of the business.

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 Boeing 737 MAX progressing as per schedule, 11 of which are expected to be inducted in its fleet during this fiscal year, 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.

The airline continues to engage with financial stakeholders for supporting its funding requirements till it starts generating operational surplus and is actively working on the monetization of its assets and capital infusion.

Based on market dynamics, the review of the Company’s network and operations, both on domestic and international routes, will continue to be an on-going process to help deliver a more strategic, efficient, and economically viable network with a focus on profitability rather than market share.

Vinay Dube, CEO, Jet Airways said, “With our clearly defined focus on profitability, we are in the midst of turning the ship around. We remain closely engaged with all our partners, who acknowledge the challenges faced by the Indian aviation industry and have been very supportive.”

“While we navigate the challenges posed by the current industry environment, our focus and attention remains on safety and operational reliability. We are confident that we will overcome our current challenges, honor our commitments to our stakeholders, and deliver a more strategic, efficient and financially viable airline.”

Jet Airways Group Q2, FY19 highlights

  • Total revenue up 6.9% at INR 6,363 crores compared to INR 5,952 crores in Q2, FY18
  • EBITDAR of INR 239 cr in Q2 FY19 against INR 1,084 cr in Q2 FY18
  • Available Seat Kilometers up 7.3% at 15.28 billion over Q2, FY18
  • Passengers carried increased by 2.2% to 7.45m over Q2, FY18
  • Interline and Codeshare traffic increased by 8.6% over Q2, FY18
  • Revenue from codeshare and interline partners increased by 30.9% compared to Q2 FY18
  • Cargo revenue up by 13.7% to 514 cr over Q2, FY18
  • Non-fuel CASK maintained at almost the same level as Q2 FY18

Beyond India, Jet Airways operates flights to key international destinations in South East Asia, South Asia, Middle East, Europe and North America. The Jet Airways Group currently operates a fleet of 124 aircraft, comprising Boeing 777-300 ERs, Airbus A330-200 / 300, the latest Boeing 737 MAX 8, Next Generation Boeing 737s and ATR 72-500 / 600s.

Top Copyright Photo (all others by Jet Airways): Jet Airways Boeing 777-35R ER VT-JEX (msn 35163) LHR (SPA). Image: 941772.

Jet Airways aircraft slide show:

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Jet Airways commences India’s first nonstop service between Mumbai and Manchester

Jet Airways Airbus A330-202 VT-JWQ (msn 956) SIN (Michael B. Ing). Image: 937746.

Jet Airways on November 5, 2018 commenced its new nonstop service between Mumbai and Manchester, further expanding the airline’s connectivity in the United Kingdom (UK).

This new service is the first nonstop service connecting India, via its economic capital with Manchester, the third largest city in the United Kingdom.

Jet Airways is now the largest carrier between Mumbai and the UK and Manchester, the 21st international destination on the carrier’s network.

Ahead of the launch of its inaugural service from Mumbai Chhatrapati Shivaji Maharaj International Airport, Jet Airways conducted a multi-faith prayer followed by a ceremonial lamp lighting ceremony to mark the occasion of its maiden Mumbai – Manchester flight.

This inaugural function was led by Mr Raj Sivakumar – Senior Vice-President, Worldwide Sales & Distribution, Jet Airways; Mr. Tom Mottershead, Deputy Director for Trade and Innovation, British Deputy High Commission; dignitaries and invitees from airport (MIAL) graced the occasion. The lamp – lighting ceremony was followed by inauguration of the check- in counter marked by a symbolic ribbon cutting. The airline felicitated the first guest to check in by handing over a boarding pass and by a floral presentation.

The airline’s first flight to Manchester 9W 130, departed on schedule from Mumbai at 0230 hrs, operated by its modern wide body Airbus A330-200 aircraft. The flight arrived at Manchester’s Terminal 2 at 0755 hrs (Local time). The return flight, 9W 129 departed from Manchester at 0935 hrs (Local time) and arrived at Mumbai’s Terminal 2 at 0040 hrs.

Since announcing the new service in May this year, the airline has been working to strengthen additional connectivity choices for guests arriving in Manchester, who can now connect onwards to North America and Europe or even within the UK, via flights with Jet Airways’ partner carriers including Virgin Atlantic, KLM Royal Dutch Airlines, Air France and other interline partners. Jet Airways’ guests and those of certain partner carriers will also be able to enjoy mutual earn and burn of miles on each other frequent flyer programmes as per agreement between the respective airlines.

Conversely, guests flying via Mumbai will be able to access Jet Airways’ network of 46 destinations within India. Similarly, quick connections to beyond points on Jet Airways’ international network such as Bangkok, Colombo, Hong Kong, Singapore, Dhaka and Kathmandu, will now be available. Some of the domestic destinations to which the new service will seamlessly connect to from Mumbai include Ahmedabad, Amritsar, Aurangabad, Bengaluru, Bhopal, Bhuj, Chandigarh, Chennai, Coimbatore, Dehradun, Delhi, Goa, Hyderabad, Indore, Jaipur, Kolkata, Nagpur, Raipur, Rajkot, Udaipur, and Vadodara.

Jet Airways’ A330-200 aircraft with 254 seats including 18 in Première will operate on this new sector.

The new service will complement the carrier’s existing thrice daily nonstop services between Mumbai – London Heathrow, and a daily service between Delhi – London Heathrow. The launch of the new service comes one year after the airline launched 3 new international services last year on October 29, 2018, to Amsterdam, Paris and London from Bengaluru, Chennai and Mumbai respectively.

Top Copyright Photo (all others by Jet Airways): Jet Airways Airbus A330-202 VT-JWQ (msn 956) SIN (Michael B. Ing). Image: 937746.

Jet Airways aircraft slide show:

Boeing, Jet Airways announce order for an additional 75 737 MAX airplanes

(PRNewsfoto/Boeing)

Boeing and Jet Airways confirmed that the Indian carrier placed an order for an additional 75 737 MAX 8 airplanes during a signing ceremony at the 2018 Farnborough International Airshow. The order, valued at $8.8 billion at current list prices, was previously posted as unidentified on Boeing’s Orders and Deliveries website.

This order for an additional 75 MAX airplanes helps the Indian carrier expand its network to meet surging demand in the fastest-growing aviation market in the world.

In June, the Mumbai-based carrier took delivery of its first MAX, a new and improved 737 that delivers a double-digit improvement in fuel efficiency and improved passenger comfort. These new airplanes arrive into an Indian aviation market that continues to grow at significant rates. According to industry data, domestic air traffic in India has grown about 20 percent in each of the past four years.

Jet Airways is India’s second-largest airline with a fleet of nearly 120 airplanes serving more than 60 destinations in 15 countries across Asia, Europe and North America.

The 737 MAX family achieves superior fuel efficiency and range through the latest CFM International LEAP-1B engines, Advanced Technology winglets, and other improvements. The jet also features the signature Boeing Sky Interior and large flight deck displays.

All images by Boeing and Jet Airways.

GECAS delivers the first Boeing 737-8 MAX 8 to Jet Airways

GECAS has announced the delivery of the first Boeing 737-8 MAX 8 (VT-JXA) to Jet Airways (India) Limited and the first Boeing MAX aircraft to enter service in India. This new aircraft continues GECAS’ partnership with Jet Airways, which began 25 years ago.

Presently India’s second-largest airline with 119 commercial aircraft, Jet Airways operates over 650 flights a day to destinations in 16 countries across Asia, Europe and North America. The addition of these new technology aircraft, fitted with CFM-LEAP-1B27 engines, aligns with Jet Airways’ growth strategy while offering enhanced fuel efficiency over previous technology.

As Jet Airways recently announced their commitment to adding 150 MAX8 aircraft to their existing fleet, Vinay Dube, Chief Executive Officer, Jet Airways, shared “Partnering with GECAS has enabled us to introduce these modern, fuel efficient aircraft into our fleet. We at Jet Airways are delighted to be able to offer a superior customer experience to our guests with the introduction of these MAX aircraft from GECAS.”

Photos: GECAS and Jet Airways.

In addition, Boeing issued this statement:

(PRNewsfoto/Boeing)

Boeing and Jet Airways on June 19, 2018 celebrated the delivery of the airline’s first 737 MAX airplane. Jet Airways will be first Indian carrier to fly the new and improved 737 airplane, which delivers a double-digit improvement in fuel efficiency and improved passenger comfort.

This delivery marks the first of 150 737 MAX airplanes the Mumbai-based airline has on order with Boeing, following two separate orders for 75 jets placed in 2015 and earlier this year.

Jet Airways is India’s second-largest airline with a fleet of nearly 120 airplanes serving more than 60 destinations across 15 countries across Asia, Europe, North America and elsewhere.

The 737 MAX is the fastest-selling airplane in Boeing history, accumulating more than 4,500 orders from 99 customers worldwide.

The family of airplanes is powered by CFM International LEAP-1B engines, and includes design updates such as Boeing’s Advanced Technology winglet that will result in less drag and optimize performance, especially on longer-range missions. Together, these improvements reduce fuel use and CO2 emissions by at least 14 percent compared to today’s Next-Generation 737s – and by 20 percent more than the single-aisle airplanes they replace.

Photo: Boeing.

Jet Airways to connect Mumbai and Manchester

Jet Airways Airbus A330-202 VT-JWP (msn 947) HKG (Javier Rodriguez). Image: 937747.

Jet Airways has announced that beginning November 5, 2018, it will launch its first nonstop service between Mumbai and Manchester. This new service is the first nonstop service connecting India, via its economic capital with Manchester, the third largest city in the UK.

Jet Airways will deploy its wide body A330-200 with 254 seating for the service, which will operate for four days every week including Monday, Thursday, Saturday and Sunday.

Manchester will become the 21st international addition to the Jet Airways network and with the introduction of this new flight – the carrier’s 5th nonstop service to/from the UK, Jet Airways will also become the largest carrier between Mumbai and the UK.

The new service will complement the carrier’s existing thrice daily, non-stop services between Mumbai – London Heathrow, and a daily service between Delhi – London Heathrow. The launch of the new service comes one year after the airline launched 3 new international services last year on October 29, 2017 to Amsterdam, Paris and London from Bengaluru, Chennai and Mumbai respectively.

Jet Airways’ flight 9W 130 will depart from Mumbai at 0230 hrs (Local time) and will arrive in Manchester’s Terminal 2 at 0755 hrs (Local time). The return flight, 9W 129 will depart from Manchester at 0935 hrs (Local time) and arrive in Mumbai’s Terminal 2 at 0040 hrs (Local time).

Copyright Photo: Jet Airways Airbus A330-202 VT-JWP (msn 947) HKG (Javier Rodriguez). Image: 937747.

Jet Airways aircraft slide show:

GECAS leases 12 Boeing 737 MAX 8s to Jet Airways

GECAS has committed to lease twelve Boeing 737-8 MAX 8s to Jet Airways (India) Limited with deliveries commencing from June 12, 2018 and continuing into 2020.

Six of these MAX aircraft will be from GECAS’ skyline order while the other six are from sale and lease back transactions from Jet Airways’ order book. The new technology aircraft are fitted with CFM-LEAP-1B27 engines.

Image: GECAS.

Boeing, Jet Airways announce a new order for 75 737 MAX airplanes

Jet Airways and Boeing today (April 4) announced a new order for 75 737 MAX airplanes as India’s premier international airline looks to the new and improved 737 jet to power its future growth.

Jet Airways announced its first order for 75 MAX airplanes in 2015 as part of a strategy to refresh its fleet with the most modern and environmentally progressive airplanes. The newest order adds 75 more MAXs to support the airline’s future expansion. Jet Airways is set to take direct delivery of its first MAX airplane later this year.

Image: Boeing.