Jet Airways Cargo - Does it mean more demand for Pilots?

[lastdon]

Dear All,

Will the no new expat FO's (after June) rule of DGCA have an effect on the operations? :hmm:

Jet Airways on quest for cargo airline partner
By Manik Mehta
Berlin
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India's largest private airline, Jet Airways, is planning to create a new cargo airline in collaboration with a European partner. Jet Airways chairman Naresh Goyal did not disclose the name of the carrier but industry circles in Germany noted that Jet Airways is holding talks with Lufthansa Cargo.
Jet Airways has a co-operation deal with the German flag carrier's technical division Lufthansa Technik. Goyal expects to set up a joint cargo carrier by the end of this year.
Jet Airways recognises the significance of the air cargo business in India. "Some 12 percent of our revenue comes from cargo transportation. We are planning to increase this share to about 30 percent in the future," Goyal told Cargonews Asia during a recent visit to Berlin, Germany.
Goyal revealed that Jet Airways is extending extend its code-sharing agreement with Brussels Airline from March 30 to include cities such as Berlin, Lyon in France and Barcelona in Spain. Although the code-sharing arrangement has been designed basically to increase passenger traffic, Jet Airways is confident that it will have a positive effect on the airline's cargo traffic.
Brussels Airport, which is Jet Airways' European hub, will be used for connecting flights to the three new destinations.
Jet Airways will also be adding new aircraft to its present fleet of 80 with an average life of 4.3 years, according to the airline's chairman.
Goyal maintained that he would intensify his search for new landing points in Germany. "We have, of course, tried to get Frankfurt, Germany's largest airport, but it does not have a free slot until 2012," he said. "Jet Airways is trying to get either Munich or Dusseldorf.''
"Germany is an important point for us because of the growing Indo-German trade,'' Goyal said.
Air India is the other airline that flies to Frankfurt from India while Lufthansa offers a number of flights to major cities in India.
"It's not going to get crowded. There is room for all three of us," Goyal said. when asked if there was room for another airline operating between India and Germany.
Goyal also revealed that Jet Airways was planning to connect more cities between India and North America via its Brussels hub. According to the airline's long-term plan - the airline already flies to Toronto, New York and Newark via Brussels - Jet Airways will connect Bangalore, Ahmedabad, Chennai and Hyderabad with Los Angeles, Chicago and Vancouver.
"Flights between Mumbai and San Francisco are already on the cards and should start in a few months, probably in early May," Goyal said.
Another major thrust will be in the Far East when the airline introduces flights to Hong Kong from April 14.

[Nevrekar]

Airlines shrink capacity to match falling demand
Praveena Sharma/ DNA MONEY
Thursday, 27 March , 2008, 09:10
Last Updated: Thursday, 27 March , 2008, 09:27

A steep fall in air traffic growth - from over 30 per cent last year to 11.5 per cent in January-February this year- is forcing airlines to correct their capacity- induction plan to check yields from slipping.



Budget airline SpiceJet Ltd has returned one of its aircraft (Boeing 737) this month and is planning to return another one in April. The lease for both the aircraft had come up for renewal.

Considering the current market situation (of over-supply and falling demand), the no-frill airline preferred to return the old aircraft rather than go in for a fresh lease.

"As the demand dips, airlines are growing their capacity at a relatively slower pace than last year. Another strategy that they are adopting is replacing old aircraft with new ones, instead of adding on to their existing capacity. We retuned one of our aircraft this month and will return another next month. We have the option to renew them but we prefer to give it back to the lease company," said SpiceJet Ltd chairman and CEO Siddhanta Sharma.

The growth in domestic passenger has been sharply declining since December, when it grew by just 14 per cent. It further fell to 11.5 per cent in January and February on higher fares, which have a very high component surcharge and tax.

Such a demand slowdown has compelled airlines to revisit their fleet expansion plan to match it with the existing demand.

"Capacity induction had taken place at a furious pace when the demand was growing at 30-35 per cent, but now, what we are seeing is that airlines have realigned their capacity expansion plan to a 10-15 per cent growth in demand," said a senior executive of a budget airline.

A prudent estimate of demand growth and a hint of credit crisis have led airlines to sell their delivery slots and defer aircraft delivery.

"Deccan and Kingfisher are selling their delivery slots and stretching the delivery of aircraft over a longer period as they resort to fleet and fare rationalisation," said an industry source.

Analysts are also putting in a word of caution in their reports. Citigroup analyst Jamshed Dadabhoy warns, "This is the third month of relatively slower growth and does not augur well for the domestic industry - especially over fiscal 2009 - given that seat capacity is forecast to grow at more than 20 per cent."

Jeh Wadia, managing director of budget airline GoAir, says that he had foreseen a demand-drop long back, and, had therefore, gone in for slower pace of fleet expansion.

"We had based our strategy on a profitable growth. We didn't want to grow as fast as everyone else and bleed ourselves to death. We went in for a prudent and conservative growth plan (for capacity) and, therefore, decided to wait for the market to stabilise before adding any further capacity," said Wadia.

Wadia is planning to expand his current fleet of six aircraft to 11-13 by the end of this fiscal. Since he has a small fleet, he will not be returning any aircraft.

Industry experts attribute the slip in domestic passenger growth to high fares. Over the past few quarters, promotional and discounted fares have disappeared from the market. This has hit demand.

"With the Re 1, Rs 99 and other such fares out of the market, there is no price stimulus for demand," said an analyst with an Indian broking house.

But despite a lower demand, the aviation industry has seen a slight improvement in its yield this year, compared to last year.

A budget airline executive said the average yield-per-passenger was up by Rs 400 this year compared to last year.

"Yes, the average yield (this year) is a little higher than last year, but it is miniscule and not enough to get them (airlines) back in the black," said Amadeus managing director Ankur Bhatia.

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