Jet to cut routes from July
The airline will reduce not only services in the metros but also routes connecting tier II cities. It will reduce capacity by 5%-equivalent of grounding six aircraft.
By Mithun Roy, ET Bureau |
MUMBAI: The country���s largest private airline Jet Airways will be reducing more than six routes from July. Sources said that the airline would reduce not only services in the metros but also routes connecting tier II cities. It will reduce capacity by 5%���equivalent of grounding six aircraft.
���We will be reducing capacity to offset skyrocketing jet fuel prices, as airlines around the world battle rising expenses,��� Jet Airways CEO Wolfgang Prock-Schauer told ET. He declined to give any timeframe, but said: ���Very soon, route rationalisation would be done. Also, we are waiting for the right time to hedge.���
Jet Airways executive director Saroj K Datta said: ���If fuel prices keep rising then Jet has no option but to cut routes. We are talking with oil companies and hope something will work out in few weeks.���
When asked about the speculation about a possible Jet bid for SpiceJet, he said: ���We were never interested or initiated any talks with SpiceJet for buyout. Moreover, airlines are reeling under oil price hike pressure and buying out or even talks don���t make any sense at this stage.���
Record crude oil prices prompted Indian refiners to raise local jet fuel costs by 53% this year. The second-largest discount airline SpiceJet will also cut routes, as a surge in jet fuel prices has hurt its profit.
���We will be reducing capacity to offset skyrocketing jet fuel prices, as airlines around the world battle rising expenses,��� Jet Airways CEO Wolfgang Prock-Schauer told ET. He declined to give any timeframe, but said: ���Very soon, route rationalisation would be done. Also, we are waiting for the right time to hedge.���
Jet Airways executive director Saroj K Datta said: ���If fuel prices keep rising then Jet has no option but to cut routes. We are talking with oil companies and hope something will work out in few weeks.���
When asked about the speculation about a possible Jet bid for SpiceJet, he said: ���We were never interested or initiated any talks with SpiceJet for buyout. Moreover, airlines are reeling under oil price hike pressure and buying out or even talks don���t make any sense at this stage.���
Record crude oil prices prompted Indian refiners to raise local jet fuel costs by 53% this year. The second-largest discount airline SpiceJet will also cut routes, as a surge in jet fuel prices has hurt its profit.
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