Jet Airways
From Wikipedia, the free encyclopedia
| Jet Airways | ||
|---|---|---|
 |
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| IATA 9W |
ICAO JAI |
Callsign JET AIRWAYS |
| Founded | 1993 | |
| Hubs | Chatrapati Shivaji International Airport Indira Gandhi International Airport Brussels Airport Shanghai Pudong International Airport |
|
| Focus cities | Chennai Hyderabad Kolkata Bangalore |
|
| Frequent flyer program | Jet Privilege | |
| Member lounge | Jet Lounge | |
| Subsidiaries | JetLite | |
| Fleet size | 83 (+ 45 Orders) = 128 | |
| Destinations | 61 | |
| Parent company | Tailwinds Limited | |
| Company slogan | The Joy of Flying | |
| Headquarters | Mumbai, India | |
| Key people | Naresh Goyal, founder and chairman | |
| Website: http://www.jetairways.com | ||
Jet Airways (India) Ltd. is an airline based in Mumbai, India, operating domestic and international services. It operates over 399 daily flights to 61 destinations. Its primary base is Chhatrapati Shivaji International Airport in Mumbai with other hubs at Indira Gandhi International Airport, Delhi, Anna International Airport, Chennai, Netaji Subhash Chandra Bose International Airport, Kolkata, Rajiv Gandhi International Airport, Hyderabad, Bangalore International Airport,Brussels Airport and Shanghai Pudong International Airport.[1]
According to March 2008 available figures, its share of India's domestic aviation market is 29.8%, which includes its low cost subsidiary Jetlite's share of 7.1% This has reduced from 31.3% in the year ago period and has been attributed to the increased capacity from low cost carriers, including Spicejet, Indigo and Go Air. [2]
Contents |
[edit] History
Jet Airways was incorporated as an "air taxi" operator on 1 April 1992. It started commercial airline operations on 5 May 1993 with a fleet of 4 Boeing 737-300 aircraft. In January 1994 a change in the law enabled Jet Airways to apply for scheduled airline status, which was granted on 4 January 1995. It began international operations to Sri Lanka in March, 2004. Plans to acquire rival Air Sahara, announced in January 2006, after some rough patches deal got through. The airline is owned by Tailwinds (owned 80% by Naresh Goyal) and public shares (20%), and has 10,017 employees (at March 2007).[1]
Naresh Goyal, who already owned Jetair (Private) Limited, which provided sales and marketing for foreign airlines in India, set up Jet Airways as a full-service scheduled airline that would give competition to state-owned Indian Airlines. Indian Airlines had enjoyed a monopoly in the domestic market between 1953, when all major Indian air transport providers were nationalised under the Air Corporations Act (1953), and January 1994, when the Air Corporations Act was repealed, following which Jet Airways received scheduled airline status.[citation needed]
Jet Airways and Air Sahara were the only private airlines to survive the Indian business downturn of the early 1990s. In January 2006, Jet Airways announced that it would buy Air Sahara for $500 million in an all-cash deal, making it the biggest takeover in Indian aviation history. The resulting airline would have been the country's largest[3] but the deal fell through in June 2006.
On April 12, 2007 Jet Airways agreed to buy out Air Sahara for 14.5 billion Rupees ($340 million). Air Sahara was renamed Jet Lite, and was marketed between low-cost carriers and full service airlines. With the acquisition of Air Sahara, Jet Airways is set to refurbish the fleet and crew with new livery and uniform.
In recent years, Jet Airways has expanded its overseas destinations to include Toronto, Hong Kong, Abu Dhabi, Brussels, and New York City, with service to Hong Kong and San Francisco starting on June 14.[4]
[edit] Brand ownership
Jet Airways does not own its brand. The brand is owned by Jetair Enterprises Ltd., a separate company substantially owned by Naresh Goyal, which licenses the brand to the airline in return for an annual payment. This arrangement is very similar to the terms governing the use of the "easy" brand by the easyJet Airline Company Limited (the name under which easyJet has been incorporated). Under the aforesaid arrangement, Sir Stelios Haji-Ioannou, the founder and largest individual shareholder of easyJet Airline Co. Ltd. has sole ownership of the "easy" brand and licenses it to that airline for a specified payment. This kind of arrangement is of vital importance should the concerned airlines become the subject of a hostile takeover bid because the bidder[s] will not automatically acquire ownership of their takeover target's brand and without access to the brand the takeover target will be less valuable.]].[5]
[edit] Controversies
It took Jet Airways more than two years to get the necessary clearances from US authorities to fly to the United States. The US State Department gave the go ahead on November 15, 2006.
Jet was expected to begin service to Newark via Brussels in June 2005 but a problem arose in March 2005, when the airline submitted an application to the U.S. Department of Transportation. Nancy Heckerman, CEO of US company Jet Airways Inc. based in Bethesda, Maryland, opposed the application in letters to the Transportation Department alleging trademark infringement. Though the litigation is still unresolved, the Department of Transportation concluded it was not a reason to prevent Jet from flying to the U.S.[6]
A second and more serious allegation that delayed Jet Airways being permitted to fly to the USA focused on its opaque ownership structure as well as its alleged links to organised crime in India and abroad. Jet Airways was originally set up as a subsidiary of Tailwinds, an Isle of Man based holding company designed as a tax shelter, whose sole shareholder was Naresh Goyal, the airline's NRI founder and chairman. Initially, both Gulf Air and Kuwait Airways had acquired minority stakes in the airline. However, the Government of India subsequently decreed that foreign airlines would not be allowed to own any shares in any Indian airline (though other foreign entities and individuals could still acquire/own minority stakes in Indian carriers.[7]
As a result of this ruling Gulf Air and Kuwait Airways sold their stakes to Naresh Goyal who then became the airline's sole shareholder. Jet Airways floated a minority stake of around 20% on the Mumbai stock exchange in 2005 to enable it to reduce the debts that had been accumulated since its inception as well as to fund its fleet expansion programme, including the acquisition of a fleet of new Airbus A330 and Boeing 777 long-haul widebodied jets to operate new long range services, primarily to Europe and North America. This resulted in a reduction of Tailwind's stake in the airline to just below 80%. According to the company's articles of association, the bulk of Naresh Goyal's shares in Tailwinds are held on behalf of several other individuals who all seem to be resident citizens of India. While Indian government officials have been satisfied that these arrangements do not compromise Jet Airways' status as an Indian-owned airline that is effectively controlled by Indian citizens, they were viewed as "problematic" by the American authorities.[6]
Another issue that was "problematic" in the eyes of the US aviation authorities concerned the controversy surrounding Naresh Goyal's citizenship. There have been reports in the Indian media that he is an Indian-born, naturalised German citizen who is permanently resident in the UK. India's citizenship laws barring dual citizenship for Indian passport holders have recently been amended permitting Indian citizens to take up another country's citizenship - bar Pakistan and Bangladesh - without forfeiting their Indian citizenship as long as that country permits dual citizenship. This does not apply to Germany as it does not allow dual citizenship, unlike the UK, US, Canada, Australia and the Netherlands for instance, which do allow dual citizenship.
Had these media reports turned out to be true confirming that Jet Airways was effectively controlled by Naresh Goyal through his majority ownership of Tailwinds, the US authorities might have construed this as a violation of the "open skies" bilateral air services agreement between India and the US as well as international aviation law. Aviation law states that an airline must be substantially owned and controlled by citizens of the country where it is based in order to qualify as a "flag carrier" representing that country. This means that if Jet Airways were effectively controlled by a German rather than an Indian citizen, its traffic rights between India and the US and possibly other countries as well might need to be renegotiated under the German-US "open skies" bilateral aviation accord. In addition, the US and other countries could ask the Indian Government for further concessions for their own designated flag carriers providing scheduled air services to/from India if Jet Airways wanted to protect its international traffic rights from/to India. This, in turn, could lead the company's Indian-based competitors to complain to the Indian authorities that Jet Airways was not a "genuine" Indian flag carrier and might potentially result in competitors applying for the revocation of Jet Airways' operating permit and traffic rights (in India and abroad).
Rumours have circulated that Tailwinds acted as a front for foreign airlines or possibly even Dawood Ibrahim, India's most wanted criminal, as well as global terror organization al Qaeda.[6] Since Dawood Ibrahim's name is on Interpol's most wanted list and has been declared a terrorist by the US government, the US authorities' review of Jet Airways' application for permission to commence regular commercial airline operations between India and the USA by being issued with a so-called "foreign [air] carrier permit" took more than two years coming. The US State Department now seems to be convinced that the ownership pattern of Jet Airways does not clash with national security.
The latest controversy arose when Asmin Tariq, a British-born contractor of Pakistani descent, who was working for the airline as a security agent at London Heathrow Airport (and was subsequently made a member of staff when the airline decided to bring its London-based security operation in-house) became implicated in the foiled terror plot of August 10, 2006 to blow up over several weeks up to ten transatlantic airliners belonging to three different US airlines in mid-air on their way from London-Heathrow/-Gatwick to New York JFK/Newark and Los Angeles/LAX airports.
Asmin Tariq has been arrested along with the other 20+ suspects and is now in British police custody. In addition, he has also been suspended from duty by Jet Airways. When asked how such a person could have been employed by the airline in a position demanding extreme confidence and trust, Jet Airways defended its conduct by saying that the person was a UK passport holder who had passed the stringent security requirements of BAA, Heathrow's owner and operator. They also said that under UK employment legislation the company was obliged to offer any permanent appointments to former contractors once the contract that formed the basis of their original employment had been terminated.
Of late Indian Minister of state for Civil Aviation Praful Patel is believed to have shown undue favouritism to Jet Airways by clearing files related to the Airlines at breakneck speed. Jet Airways's application to fly to Canada was cleared within two weeks of application being received by DGCA while blocking the entry of new entrants into Indian Aviation(scheduled operations)for over two years. A Parliamentry Committee headed by Nilotpal Basu found Minister Patel favouring Jet Airways but considering the fact that Minister Patel was an ex-director of the Board of Jet Airways, the fault lines lie with the Prime Minister who failed to see the possibility of vested interests taking over the Civil Aviation Ministry.
[edit] Destinations
Jet Airways serves 61 destinations.[8]
Jet Airways's 61 destinations include most of the big cities in India. International destinations include Dhaka, Kathmandu, Colombo, Bangkok, Kuala Lumpur, Singapore, London Heathrow, Brussels, Newark, New York, Toronto, Kuwait, Bahrain, Muscat, Doha, Abu Dhabi and Hong Kong. Jet Airways was the first private airline in India to fly to international destinations. It started international operations in March 2004 between Chennai and Colombo after it had been cleared by the Government of India to operate scheduled services to international destinations.
Subsequently, a second route linking Mumbai with Colombo and a new route between Delhi and Kathmandu were added. The latter commenced in May 2004. On December 29, 2004 the Government of India decided in principle to permit privately owned Indian carriers to operate scheduled air services to any international destination world-wide with the exception of the Gulf countries, i.e., Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates as well as Pakistan. They will fly to the Middle East from Kochi, Thrivananthapuram, Kozhikode (Calicut), Mumbai and Delhi. Another effect of this stipulation was that, apart from Jet Airways itself, Air Sahara was the only other privately owned Indian carrier permitted to operate international scheduled services.
Jet Airways sought to take maximum advantage of this ruling by adding new international scheduled routes to destinations within the flying range of its growing fleet of "Next Generation" Boeing 737-700/800 series narrowbodied jets, such as Singapore and Kuala Lumpur. This first led to a decision to lease three Airbus A340-300E widebodies from South African Airways to enable it to commence non-stop flights to London Heathrow in the UK and to subsequently place a large order for a fleet of brand-new Airbus A330-200 and Boeing 777-300ER widebodied airliners to permit further expansion, especially to additional destinations in Europe and North America. In 2006 Jet Airways had international services to Kathmandu, Colombo, Singapore, Kuala Lumpur, London Heathrow, operating from Mumbai, Delhi, Chennai and Amritsar.
Jet Airways has begun thrice-weekly operations from the north Indian city of Amritsar to London Heathrow to serve the UK's large ethnic Punjabi community. Jet Airways began serving Amritsar on August 4, 2006. This service, which was initially operated at a frequency of three flights a week, is now operated daily. Jet Airways has started flying daily flights to Bangkok from Delhi and Kolkata (formerly Calcutta) effective January 23, 2007.
On 5 September 2007 Jet Airways started to fly to Toronto via Brussels. On 28 October 2007 Jet Airways started flying to New York JFK via Brussels. Flights to Gulf regions began in January 2008 and by the end of the year, flights to Abu Dhabi, Bahrain, Doha, Dubai, Kuwait, Muscat and Sharjah will be included.
Meanwhile, Jet Airways is planning to set up a hub at Shanghai Pudong International Airport from 14th June to serve transpacific routes to San Francisco (14th June), Vancouver and Los Angeles.[9]
[edit] Fleet
| Aircraft | Total | Passengers (First Class/Club Première/Economy) |
Routes | Notes |
|---|---|---|---|---|
| ATR 72-500 | 10 (5 orders) |
62 (0/0/62) | Domestic | For delivery from March 2009 |
| Airbus A330-200 | 9 (6 orders) |
226 (0/30/196) | Brussels,Singapore-Changi,Toronto-Pearson,
London-Heathrow,Shanghai-Pudong |
3 to be deliverd in 2008 |
| Boeing 737-400 | 4 | 136 (0/24/112) | Domestic | |
| Boeing 737-700 | 13 | 112 (0/16/96) | Domestic | |
| Boeing 737-800 | 35 (19 orders) |
140 (0/16/124), 150 (0/24/126), 175 (0/0/175),144(0/24/120) | Domestic,Asia,Middle East | |
| Boeing 737-900 | 2 | 160 (0/28/132) | Domestic,Asia,Middle East | |
| Boeing 777-300ER | 10 (5 orders) |
312 (8/30/274) | London-Heathrow,Brussels,New York-JFK,Newark-Liberty International,San
Francisco,Shanghai-Pudong |
For delivery between 2007 and 2009 |
| Boeing 787-8 | 0 (10 orders) |
For delivery in 2011 | ||
| Total | 83 + (45 orders) |
Fleet Information Data - http://www.jetairways.com/Cultures/en-US/Other/About+Us/Fleet+Information/?UserPref=culture%5Een-U
The average age of Jet Airways fleet is 4.1 years in June 2008. [10].
[edit] Retired Fleet
| Aircraft | Total | Passengers | Routes | Notes |
|---|---|---|---|---|
| Airbus A340-300 | 3 | Long Haul Routes | Leased from South African Airways | |
| Boeing 737-300 | 4 | Short Haul Domestic Routes | ||
| Boeing 737-400 | 13 | 136 (0/24/112) | Short haul Domestic routes | |
| Boeing 737-500 | 5 | Short haul Domestic routes | ||
| Boeing 737-700 | 3 | Short and Medium Haul Routes | ||
| Total | 28 |
[edit] In flight services
With the arrival of its new Boeing 777-300ER and Airbus A330-200 aircraft, Jet Airways has introduced a new cabin with upgraded seats in all classes. The Boeing 777-300ER aircraft feature three classes of service: First, Première (Business), and Economy. The Airbus A330-200 aircraft feature two classes: Première and Economy. All A330-200 and 777-300ER aircraft have this feature. 737 aircraft are configured differently. Jet Airways has a 5 star rated Business and First Class, and is in the top 5 business class reviewed by Skytrax. Economy class has been reviewed as a 4 star product by Skytrax.
First Class
First class is available on all Boeing 777-300ER aircraft. All seats convert to a fully flat bed, similar to Singapore Airlines suites but smaller. It was the second airline in the world to have private suites. Emirates Airline were first, introducing the private suites in 2003 on the Airbus A340-500. All seats feature a 23-inch Widescreen LCD monitor with audio video on-demand (AVOD), in seat power supply, and USB ports etc. Jet Airways is the first airline in India to have fully-enclosed first class suites on its aircraft; each suite has a closeable door, making for a private compartment. It is the 3rd best First Class in the world as conducted by Skytrax. The only airlines that surpass Jet in First Class are Singapore Airlines and Emirates Airline.
Première Class
Première Class (Business Class) on the Airbus A330-200 and Boeing 777-300ER international fleet features a fully-flat bed with AVOD entertainment. Seats are configured in a herringbone pattern (1-2-1 on the Boeing 777, and 1-1-1 on the Airbus A330), with each seat offering direct access to the aisle. USB ports and in-seat laptop power are provided. Mood lighting is installed on the A330-200 and B777-300ER, with different light schemes corresponding to the time of day and flight position.
On the shorthaul/domestic Boeing 737, approximately a few newer aircraft are equipped with AVOD. All seats are standard recliner Business Class seats.
Economy Class
Economy class on the Boeing 777-300ER, Boeing 737, and A330-200 feature 32-inch seat pitch. All 777/A330, as well as some Boeing 737 aircraft, feature a touch screen AVOD system. Seats on the 777/A330 feature a "hammock-style" net footrest. The cabin is configured in 3-3-3 abreast on the 777, 2-4-2 on the A330, and 3-3 in the 737.
[edit] Airline agreements
Jet Airways has commercial agreements with the following airlines:
- Air Canada
- Air France
- All Nippon Airways
- American Airlines
- Austrian
- Brussels Airlines
- Cathay Pacific
- Etihad Airways
- Gulf Air
- Japan Airlines
- Jet Lite
- KLM
- Lufthansa
- Northwest Airlines
- Qantas
- South African Airways
- Swiss International Airlines
- Thai Airways International
- Virgin Atlantic Airways
- United Airlines (STARTING ON 1st NOVEMBER)
[edit] Codeshare Agreements
Jet Airways has codeshare agreements with the following airlines:
- Air Canada (Toronto, Vancouver, Calgary, Montreal, and Edmonton)
- American Airlines (Baltimore, Boston, Cleveland, Dallas (Fort Worth), Raleigh-Durham and Washington(Reagan)
- Brussels Airlines (Birmingham, Madrid, Lyon, Vienna, Berlin and Barcelona)
- All Nippon Airways (Tokyo)
- Qantas (Sydney, Melbourne, Adelaide, Perth, Brisbane (AU-SIN flights by QF, SIN-IN flights by 9W)
- United Airlines (Chicago, Denver, San Francisco, Los Angeles, Washington (Dulles)) Starting November 1st
[edit] References
- ^ a b "Directory: World Airlines", Flight International, 2007-04-03, p. 97.
- ^ Hindu Businessline - India aviation
- ^ Indian airline Jet Airways is to buy rival carrier Air Sahara in a deal worth $500 m (£284 m).. BBC News (2006-01-19).
- ^ hindustantimes.com
- ^ http://www.tehelka.com/story_main18.asp?filename=Ne070806Networked_CS.asp
- ^ a b c Financial Times (Jet Airways denies links with al-Qaeda), UK Edition, London, 8 June 2005
- ^ [1]
- ^ Jet Airways announces India / Canada flights
- ^ domain-b.com : Jet Airways to make Shanghai hub for services to US west coast
- ^ Jet Airways Fleet Age
"JET files suit for 500Cr"Agarwal Today report
[edit] External links
- Official website
- Indian Aviation Business news report on Bloomberg
- News timeline for Jet Airways
- Jet Airways buyout of Air Sahara on BBC news
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