Jet in Rs 100-cr cost-savings drive

Jet Airways, fresh from a second quarter loss of Rs 55 crore, is working on a turnaround plan aimed at saving nearly Rs 100 crore over the next five months of the current financial.

Confident that the worst is over for the Indian aviation industry in general, now that crude oil prices have come down, Jet is working on its fuel costs, a measured expansion in capacity without any big increase in headcount and more web-based bookings. "We have a cost savings programme in place for the remaining five months of the year, which amount to $22 million (Rs 98.70 crore),” chief executive officer Wolfgang Prock-Schauer said.

This will include better fuel tankering, re-negotiation of fuel supply deals, capacity increase without increasing headcount and more web-based ticketing. In the quarter to September 30, 2006, Jet reported a total expenditure of Rs 1739 crore against Rs 1059 crore in the same period of the previous year, when it had reported a net profit of Rs 68 crore. But Jet has no plan to slash ticket prices, preferring to remain a full-service carrier benchmarked by quality.‘‘ However, while one can expect stable prices now, it does not mean that you will not get good fares on Jet,” he said.

On the revenue side, Prock-Schauer said Jet has no plans for funny fares, in an oblique reference to the low-cost airlines crowding the market. Prock Schauer said Jet is also looking at partnerships with more leading international airlines on the lines of the one it has with Australia’s Qantas. Under the code-share agreement with Qantas, passengers flying Jet from Delhi to Singapore get seamless connections to four Australian cities. Prock-Schauer, here to announce Jet’s maiden international flight from Kolkata, said the ASEAN air travel market is the most exciting.” he said.

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