Jet grounds flights to Northeast towns from February to cut cost

  • | Thursday | 6th December, 2018

Measures will include rationalisation of operations on select, uneconomic routes,” Jet said in a statement, adding that it will redeploy planes to more productive domestic and international sectors. In the corresponding quarter last year, it had posted a profit of Rs 49.63 crore. These changes do not mean that Jet has given up on its growth ambitions. “In the east, there is a lot of travel to northeastern markets and not just to other metros. The airline has a debt of $1.1billion.“The airline has embarked on a comprehensive review.

KOLKATA: Caught in air turbulence, Jet Airways is trying to stay afloat by slashing flights on less profitable routes and adding capacity on those that offer high yields.On the chopping block are several routes in the northeast, a move that would severely affect connectivity to the region as well as send ticket prices soaring. The full-service carrier has already stopped accepting bookings to several towns in the northeast and other parts of India for February and beyond.Travel agents from Kolkata pressed the panic button when no bookings were available beyond February 10 on direct flights to multiple destinations from Kolkata. “We tried to first book a flight to Silchar in mid-February but failed. We then tried Aizawl, Imphal and Jorhat without success. Coming barely days after 14 Jet flights had to be cancelled after pilots reported ‘ill’, this does not augur well for the airline and Indian aviation industry,” a travel agent said.The debt-ridden airline has been struggling to stay afloat and posted a loss for the third straight quarter on Monday. The situation has been precipitated by higher fuel costs, weaker rupee and intense competition that pushed down yields.With fuel costs rising by 58.6%, Jet Airways recorded a foreign exchange loss of Rs 417 crore, up from Rs 73 crore a year ago. Revenue from operations increased by 9.5%. The airline has a debt of $1.1billion.“The airline has embarked on a comprehensive review. Measures will include rationalisation of operations on select, uneconomic routes,” Jet said in a statement, adding that it will redeploy planes to more productive domestic and international sectors. Internationally, too, it is rationalising its operations and already announced the decision to withdraw from seven Gulf routes.The airline further said it was withdrawing operations from the four airports in the northeast to provide the airline with economies of scale at other stations.“Effective February 2019, Jet Airways’ average departures per domestic station will increase by 6%. These changes do not mean that Jet has given up on its growth ambitions. We are still growing and the aircraft that are freed will be redeployed on other routes,” the statement read.Apart from the four stations in the northeast, sources said Jet flights to Raipur, Visakhapatnam, Madurai and Trichy were also uncertain post January 2019. “The airline is perhaps looking to withdraw from all stations where it has two or less departures,” an airline source said.A travel trade industry source said the shutdowns would also affect corporate travellers and may lead to many companies switching allegiance to other airlines. “In the east, there is a lot of travel to northeastern markets and not just to other metros. The closure of four stations in the northeast is unfortunate and affects passenger confidence in the airline,” he said.To shore up confidence, the airline announced a new promo for a limited period in which base fare is being slashed by up to 30% for both domestic and international travel across the network. Industry sources said customers appeared hesitant on whether to commit money in advance at a time when the airilne was announcing withdrawal of services from various routes.Industry sources said these were short-term measures to mop up capital and increase cash flow within the company to keep it operational till Etihad Airlines increases its stake from 24% at present to 49% and pumps in fresh capital.The airline posted a loss of Rs 1,297 crore for the quarter ended 30 September. In the corresponding quarter last year, it had posted a profit of Rs 49.63 crore.

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