Jet Airways likely to expand international operations

Kingfisher and Air India flounder: CAPA study

New Delhi, May 25:

With Kingfisher's international operations suspended and Air India's long-haul services likely to be subject to ongoing industrial action, Jet Airways is expected to seize the opportunity and aggressively expand its international operations, aviation think-tank Centre For Asia Pacific Aviation has said.

“In addition to increasing frequencies to existing destinations in the Gulf and Southeast Asia, the other new routes under evaluation include Beijing, Ho Chi Minh City, Shanghai, Amsterdam, Frankfurt, Munich, Paris and Rome (with Frankfurt and Munich being the priority destinations, expected to commence from the Winter 2012/13 schedule), Chicago, San Francisco and Washington,” the study adds.

Strategic development

The study also hints at Jet Airways becoming the first Indian carrier to join a global airline alliance, Star Alliance. The ongoing troubles in Air India may force the Government to do a rethink on whether Jet Airways should be permitted to join Star Alliance or not.

Initially, the Government had said that it could not proceed with the application of Jet Airways until Air India had been inducted.

“Its (Jet Airways) plans to start services to Frankfurt and Munich are linked to this strategic development,” the report adds.

Short-haul international traffic growth — to South and Southeast Asia, as well as the Gulf and Central Asia — is expected to be above 10 per cent as IndiGo and SpiceJet ramp up their overseas operations.

Traffic impact

“GoAir has also applied for permission to launch international services, despite the fact that it has not yet met the qualification threshold of having a fleet of at least 20 aircraft (it has just twelve).

However, its application is likely to be approved,” the report adds.

The study estimates that International passenger traffic is projected to grow by 8?10 per cent in fiscal 2012-13 to reach approximately 44 million. “However, much will depend upon developments at Air India, which has the largest share of international capacity to and from India at 14.4 per cent. If the failure to address human resources issues leads to ongoing industrial action and even a possible temporary shutdown of the carrier, there would undoubtedly be an impact on traffic growth,” the report states.

http://www.thehindubusinessline.com/todays-paper/tp-economy/article3456995.ece