MUMBAI: Jet Airways, which is in talks for a strategic-cum-equity partnership with Abu Dhabi-based Etihad Airways, has put on hold its plan to expand its network in Europe through Munich airport, till its deal fructifies with the Middle-eastern carrier. In the recent winter schedule (from October 28), India's secondlargest airline in terms of market share was granted permission from the ministry of civil aviation to start 35 new flights to Munich. To facilitate its expansion of routes into European cities, Jet was in talks with German carrier Lufthansa for membership in Star Alliance — one of the largest global airline grouping — along with a hub at Munich airport.
The changed scenario, after the ministry approved foreign carriers to invest in Indian airline firms, has now forced Jet to change its stance. It has adopted a 'go slow' approach in actively pursuing Star Alliance membership and also is in the process of reworking its European expansion plans.
Jet confirmed that it has put on hold its plans to expand in Munich till such time as the deal with Etihad is in the works.
"It's correct that we have put on hold our expansion in Munich. But our overall expansion in Europe is not on hold till the deal with Etihad is finalised. We are still finalising our expansion plans in Europe and cannot discuss them at this stage," said Jet Airways CEO Nikos Kardassis.
"Jet's move is in line with continuous string of positive news coming out of the ongoing discussions between Jet and Etihad. If the deal goes through, there will be a significant reworking of Jet's and Etihad's routes catering to the Indian traffic. Brussels' and Munich's loss will be Abu Dhabi's gain," says Amber Dubey, partner and head, aviation at KPMG.
Jet has sought additional flights to Abu Dhabi and other South East Asian cities from the ministry for the summer schedule that commences from March and in a changed rule the ministry now grants flying rights for three schedules in advance. Officials from Munich Airport that were in India last fortnight to discuss with Indian carriers plans to fly into Germany said they await Jet's response on the commencement of flights.
Confirming this, Christina Werkstetter, director, traffic development business division aviation, Munich Airport, told ET: "Currently, the move is put on hold by Jet. We are in discussions, but in the wake of new developments (deal with Etihad) we will have to see how things unfold. We are watching the deal very closely and we have to be patient."
"We could not manage to attract Air India," rued Werkstetter adding that India is a strong market and they are trying to attract Indian carriers to add more flights to Germany. But the German airport official did not rule out an alliance even if Jet takes on board Etihad as a partner.
http://articles.economictimes.indiatimes.com/2013-03-29/news/38125670_1_etihad-airways-jet-and-etihad-jet-airways
The changed scenario, after the ministry approved foreign carriers to invest in Indian airline firms, has now forced Jet to change its stance. It has adopted a 'go slow' approach in actively pursuing Star Alliance membership and also is in the process of reworking its European expansion plans.
Jet confirmed that it has put on hold its plans to expand in Munich till such time as the deal with Etihad is in the works.
"It's correct that we have put on hold our expansion in Munich. But our overall expansion in Europe is not on hold till the deal with Etihad is finalised. We are still finalising our expansion plans in Europe and cannot discuss them at this stage," said Jet Airways CEO Nikos Kardassis.
"Jet's move is in line with continuous string of positive news coming out of the ongoing discussions between Jet and Etihad. If the deal goes through, there will be a significant reworking of Jet's and Etihad's routes catering to the Indian traffic. Brussels' and Munich's loss will be Abu Dhabi's gain," says Amber Dubey, partner and head, aviation at KPMG.
Jet has sought additional flights to Abu Dhabi and other South East Asian cities from the ministry for the summer schedule that commences from March and in a changed rule the ministry now grants flying rights for three schedules in advance. Officials from Munich Airport that were in India last fortnight to discuss with Indian carriers plans to fly into Germany said they await Jet's response on the commencement of flights.
Confirming this, Christina Werkstetter, director, traffic development business division aviation, Munich Airport, told ET: "Currently, the move is put on hold by Jet. We are in discussions, but in the wake of new developments (deal with Etihad) we will have to see how things unfold. We are watching the deal very closely and we have to be patient."
"We could not manage to attract Air India," rued Werkstetter adding that India is a strong market and they are trying to attract Indian carriers to add more flights to Germany. But the German airport official did not rule out an alliance even if Jet takes on board Etihad as a partner.
http://articles.economictimes.indiatimes.com/2013-03-29/news/38125670_1_etihad-airways-jet-and-etihad-jet-airways
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