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).
The liquidity crunch in global markets following the crisis in the US sub-prime mortgage business has prompted Jet Airways to postpone its $ 400 million rights issue to finance the airline's aircraft acquisition by two or three months.
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.
JetLite, which was acquired by Jet Airways for Rs 1,450 crore, is operating three of its seven Canadian-built Bombardier airplanes. JetLite has a total 24 aircraft, including Boeing B737s.
'The other airlines will be concerned about Jet Airways'
Jet Airways had appointed Ball as its CEO in May last year.
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 to raise $400m and add 20 new aircraft for expansion.
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.
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.
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.
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.
The proposed $400 million rights issue of Naresh Goyal-promoted private airline Jet Airways will hit the capital market by mid-October.
Jet Airways chairman Naresh Goyal on Thursday vehemently denied any link with the underworld saying all agencies have cleared his airline in this connection and that is why the carrier has been allowed to fly to the US.
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.
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.
Experts say Roy has got a great price for Air Sahara, which was steadily losing market share. The company was also burning a lot of cash to keep the airline afloat.
Jet Airways Chairman Naresh Goyal said this price represents a 40 per cent discount to the originally agreed price.
Etihad has purchased 24 per cent stake in Jet Airways in a deal worth about Rs 2,060 crore deal which was announced in April 2013.
Jet Airways chairman Naresh Goyal said his airlines, if given permission, would start off by flying to Southeast Asian countries.
Amid speculation that there was a price re-negotiation for Jet Airways taking over Air Sahara, officials of the two airlines on Thurs
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.
The process of getting a new promoter on board is likely to take another two to three months and once that happens, the banks would offload their stakes.
The money is expected to be disbursed by the lenders consortium led by SBI after the Jet management submits an operational plan on how it intends to use the money till May 7.
Amid speculation about Air Sahara selling its equity to raise funds for its expansion plans, liquor baron and owner of Kingfisher Airline Vijay Mallya
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.
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