Pilots and engineers to be affected by this move are understood to have expressed their opposition to it and are considering their response, the source said. The airline employs around 13,200 personnel with around 2,000 of them drawing a salary of more than Rs 100,000 a month. These officials comprise mainly pilots and maintenance engineers.
Cash-strapped Indian carriers are finally finding money to finance expansion plans or merely fund operations. State-owned Air India is set to receive a $1 billion (Rs 49,000 crore) loan and Naresh Goyal-promoted Jet Airways is close to striking a deal for a Rs 500-crore loan from Indian Overseas Bank.
'The other airlines will be concerned about Jet Airways'
The airline has also finalised its plans to lease out five of its Boeing 777-300 ER aircraft to a Turkish carrier, sources add. The airline has been able to negotiate a premium for the deal in a market where lease premiums have dropped.Domestic carriers are facing turbulent times because of the high crude prices and variable taxation on the air turbine fuel. The problem is now compounded because of a slump in the economy now.
Reduce high-cost loans, create a contingency fund and play long term. These are the only mantras to survive during a slowdown.
Jet is losing money fast, beset by high costs, low fares and cut-throat competition in its domestic market.
Jet to raise $400m and add 20 new aircraft for expansion.
With high global crude prices hitting bottomlines of airlines, Jet Airways chief Naresh Goyal said the industry, including his own carrier, would have to raise fares to stay away from a crisis.Crude prices have been on a record run lately and touched $135 a barrel, immensely increasing the cost of jet fuel (ATF).
Aiming at 50 per cent revenue from its international operations in three years, Naresh Goyal-promoted Jet Airways is planning to launch flights to New York in August followed by San Francisco and Toronto.
Jet Airways is all set to spread its wings to Beijing, Milan and Paris within a year. The airline currently flies to London it is the market leader on this route with a robust share of 33 per cent and Brussels, which is also its second hub after Mumbai. Jet will be operating flights to Dubai from New Delhi and Mumbai. Taking on Air India's other strategic market, Goyal also announced the date for the launch of the airline's Mumbai-Shanghai-San Francisco flight.
Jetfleet, a Naresh Goyal-promoted Jet Air group company, on Wednesday entered into a tie-up with major fleet operator Europcar for car rental operations in India.
Battling to grab market share on international routes, Jet Airways has drawn up plans to make China a hub for flying to popular destinations like San Francisco and Los Angeles on the US west coast and to Vancouver in Canada in the near future. "It is much shorter to fly from China to the US west coast than from Singapore. This way, the yields on the routes will also be higher," said Jet Airways Chairman Naresh Goyal.
Jet will have 56 flights (around 9,400 seats a week) from four destinations from New Delhi, Mumbai, Kochi and Kozhikode to Bahrain and Doha (non-stop), Muscat and Kuwait, and cater to the middle and upper ends of the market.
The Supreme Court will hear on October 26 a petition alleging that Jet Airways chairman Naresh Goyal has links with the underworld. An appeal filed by M Furquan, a Delhi-based journalist, has alleged that funds for Jet Airways was given by underworld don Dawood Ibrahim. He has also sought a CBI inquiry into the matter.
Amid speculation that there was a price re-negotiation for Jet Airways taking over Air Sahara, officials of the two airlines on Thurs
Jet Airways was granted traffic rights on the Gulf and West Asian routes at a meeting of the Directorate General of Civil Aviation on Thursday evening.
The proposed $400 million rights issue of Naresh Goyal-promoted private airline Jet Airways will hit the capital market by mid-October.
Jet also recently announced plans to launch direct flights to Brussels this summer, launching itself as a direct rival to Air India on flights between India and Europe.
Air-India (A-I) chairman and managing director Vasudevan Thulasidas and Jet Airways chairman Naresh Goyal have a common agenda: to get their airlines among Asia's top five by 2010 in terms of size and service.
Jet has paid Rs 400 crore, which it was required to pay by April 20 to the promoters of Air Sahara. This marks the closure of the deal, company sources said.
Jet Airways Chairman Naresh Goyal said this price represents a 40 per cent discount to the originally agreed price.
Subsequent to a failed acquisition deal, Air Sahara, on Friday, filed a Rs 3,020 crore (Rs 30.2 billion) claim against Jet Airways for non-completion of the agreement.
Private sector carrier Jet Airways' net loss widened to Rs 214.18 crore (Rs 2.14 billion) for the third quarter ended December 31 from Rs 91.12 crore (Rs 911.2 million) in the year-ago period.
Contrary to speculation that it was seeking to revise downward the value of Air Sahara, Jet Airways' move to make part payment till the pendency of other issues demonstrated its strong desire to acquire the rival airline.
Jet Airways has placed a $300 million order with US aeroengine major GE for supplying engines to power the Mumbai-based airline's Airbus A 330-200 fleet.
In the biggest aviation takeover in India, Jet Airways has struck a deal to buy Sahara Airlines for Rs 2,300 crore (Rs 23 billion), a move that would help Naresh Goyal promoted carrier to become the biggest domestic carrier.
The Naresh Goyal-promoted airline, which is beginning flights to London from May 23, will launch its flights to Newark via Brussels a month later, chief executive officer Wolfgang Prock-Schauer told reporters in Mumbai.
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