Jet Airways pilot academy, cargo airline coming

New flights to Zurich, Los Angeles, Munich

BY A CORRESPONDENT
May 1, 2006

Jet Airways is planning to launch a cargo airline within the next two years. It will be headed by a former UPS official. Jet Airways hopes to tap the rising demand for freight transport in the country with the cargo airline. Recently, the company's outgoing COO Peter Luethi had said that the airline last year 67% of its revenues from cargo. The airline also has plans to start a pilot training academy.

Jet Airways also plans to tap the demand for increasing India-bound tourist travel with the launch of new overseas flights to Zurich, Los Angeles and Munich. However, the company may still have a few hurdles to clear, with permission for US flights stuck in the corridors of power. It is also planning direct Amritsar-Birmingham and Amritsar-London flights in 2 months.

The airline is also in talks to tie up with foreign carriers like Air New Zealand and Qantas, said Jet Airways board member Vic Dungca.

Jet it has recorded a 71% rise in its net profit in the last quarter. The profit for the period was Rs 227.12 crore, as against to Rs 133 crore in the corresponding previous quarter. Total income during the quarter rose to Rs 1,969.56 crore from the previous Rs 1,222.61 crore. Jet Airways is planning to raise more resources to finance expansion. It will come out with a $300 follow-on equity issue soon, along with an FCCB issue for $800 million.

For the entire fiscal, Jet Airways posted a 15% increase in its net profit at Rs 452.04 crore compared to Rs 391.99 crore in FY-05, it said. Total income during the reporting fiscal increased to Rs 6,135.47 crore compared to Rs 4,420.17 crore in FY-05. Commenting on the results, Jet Airways' Chairman Naresh Goyal said: "We are pleased to report a strong set of full-year results. We remain the market leader and the most profitable airline in India but we operate in a challenging environment. We are naturally concerned with the high level of input costs, primarily fuel, and we expect that the coming year could remain challenging on this front. Over the coming months, we will be working towards successfully integrating Sahara Airlines' operations into our own, subject to regulatory approvals. This is one of the most exciting opportunities in the history of Jet Airways and we are committed to capturing the full synergies of this acquisition with a sense of urgency."

Jet Airways claimed that as of now, it commands 24% marketshare in the Mumbai-London route.

Jet Airways currently operates a fleet of 43 classic and next generation Boeing 737-400/700/800/900 aircraft, 3 A340-300E aircraft and 8 modern ATR72-500 Turboprop aircraft. With an average age of a little over 5.2 years, the airline has one of the youngest aircraft fleet in the world. Approximately 30,000 passengers travel daily on Jet Airways' 320 flights to 48 destinations in India and beyond, including Colombo in Sri Lanka, Kathmandu in Nepal, Singapore, Kuala Lumpur in Malaysia and London Heathrow, UK. Since inception in May 1993 until end-March 2006, Jet Airways has flown approx. 60.7 million passengers.