Jet Airways

Not to be confused with Jetway, Airway (aviation), Jat Airways, or Jetstar Airways.
Jet Airways
IATA
9W		 ICAO
JAI		 Callsign
JET AIRWAYS
Founded 1 April 1992
Commenced operations 5 May 1993
Hubs Chhatrapati Shivaji International Airport (Mumbai)
Secondary hubs
Focus cities
Frequent-flyer program JetPrivilege
Airport lounge Jet Lounge
Subsidiaries
  • Jet Lite
Fleet size 116
Destinations 73[1]
Company slogan The Joy of Flying
Parent company Tailwinds Private Limited
Headquarters Mumbai, India[2]
Key people
Revenue Increase INR173 billion (US$2.7 billion) (2012)[5]
Profit Decrease INR-14.20 billion (US$−230 million) (2012)
Employees 13,945 (2012)
Website www.jetairways.com
www.jetkonnect.com
Airbus A330-202 VT-JWL in Hong Kong

Jet Airways is a major Indian airline based in Mumbai. It is the second largest airline in India, both in terms of market share[6] and passengers carried, after IndiGo.[7] It operates over 300 flights daily to 74 destinations worldwide. Its main hub is Mumbai, with secondary hubs at Delhi, Kolkata, Chennai, Bengaluru.[8]

History

1992-2009: Inception and growth

SM Centre, the former head office

Jet Airways was incorporated as an air taxi operator on 1 April 1992. It started commercial operations on 5 May 1993 with a fleet of four leased Boeing 737-300 aircraft from Malaysia Airlines. In January 1994 a change in the law enabled Jet Airways to apply for scheduled airline status, which was granted on 4 January 1995. 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 to compete against 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providers were nationalised under the Air Corporations Act (1953), and January 1994, when the Air Corporations Act was repealed, following which Jet Airways received scheduled airline status.

Jet began international operations from Chennai to Colombo in March 2004. The company is listed on the Bombay Stock Exchange, but 80% of its stock is controlled by Naresh Goyal (through his ownership of Jet's parent company, Tailwinds). It has 13,177 employees (as at 31 March 2011).[9] In January 2006 Jet Airways announced that it would buy Air Sahara for US$500 million in an all-cash deal, making it the biggest takeover in Indian aviation history. It would have resulted in the country's largest airline but the deal fell through in June 2006. On 12 April 2007 Jet Airways agreed to buy out Air Sahara for INR14.5 billion (US$340 million). Air Sahara was renamed JetLite, and was marketed between a low-cost carrier and a full service airline. In August 2008 Jet Airways announced its plans to completely integrate JetLite into Jet Airways.[10] In October 2008, Jet Airways laid off 1,900 of its employees, resulting in the largest lay-off in the history of Indian aviation.[11]

However the employees were later asked to return to work; Civil Aviation Minister Praful Patel said that the management reviewed its decision after he analysed the decision with them.[12][13] Jet Airways and their rival Kingfisher Airlines announced an alliance which primarily includes an agreement on code-sharing on both domestic and international flights, joint fuel management to reduce expenses, common ground handling, joint utilisation of crew and sharing of similar frequent flier programmes.[14] On 8 May 2009 Jet Airways launched its low-cost brand, Jet Konnect. The decision to launch a new brand instead of expanding the JetLite network was taken after considering the regulatory delays involved in transferring aircraft from Jet Airways to JetLite, as the two have different operator codes. The brand was launched on sectors that had 50% or less load factor with the aim of increasing it to 70% and above. Jet officials said that the brand would cease to exist once the demand for the regular Jet Airways increases.

2010-present

A Jet Airways ATR 72-500

According to a PTI report, for the third quarter of 2010, Jet Airways (Jet+JetLite) had a market share of 22.6%[15] in terms of passengers carried, thus making it a market leader in India, followed by Kingfisher Airlines with 19.9%. In July 2012, Jet Airways officially sought government approval to join Star Alliance.[16] In June 2011, Jet Airways was the first domestic airline to ban carrying fish, crab, meat, poultry products and liquid items as check-in baggage.[17] Early in 2013, Etihad Airways, one of the flag carriers of the United Arab Emirates based in Abu Dhabi, planned to buy a stake in Jet Airways. On 24 April 2013, Jet announced that they were ready to sell a 24% stake to Etihad for US$379 million.[18] Earlier, in September 2012, the government of India announced that foreign airlines could take a stake of up to 49% in Indian airlines, thereby making this deal possible. Etihad, which had already purchased stakes in four other loss-making airlines, said they were "concentrating on future potential rather than past performance", and were ready to take the stake in Jet.[19] Initially, Jet announced that they were likely to sign the stake sale deal with Etihad between 22 January and 3 February,[20] which they later confirmed to as 25 January.[21] However, that date passed and the deal was further postponed.[22]

Meanwhile, Jet Airways concentrated well on revenues, costs and network side, which resulted in the airline making profits for the first time since the rupee depreciation. Nikos Kardassis, the Chief Executive Officer of Jet Airways, said "The combined impact of higher yields and lower costs (ex-fuel) have resulted in significantly lowering the breakeven seat factor levels in the business."[23] The airline announced a sale on its website, which offered two million seats for travel within India, till 31 December 2013. This sale was announced a little over one month after rival low-cost carrier SpiceJet announced a sale, which was expected to have triggered a fare war.[24] High airfares throughout 2012 due to grounding of Kingfisher Airlines caused passengers to opt out of air travel, leading to negative growth in traffic for the first time since 2009. Jet Airways planned to attract more passengers by subsequently lowering the fares, which was followed by SpiceJet again. With two airlines offering cheaper travel, India's flag carrier started losing passengers and it too offered cheaper tickets. This was followed by IndiGo and GoAir, resulting in a full-fledged fare war.[25]

Jet had introduced four different slabs of discounts depending upon the distance to destination. Under the offer, the fare up to 750 kilometres was priced at INR2250 (US$36), while for 750–1000 kilometres it was INR2850 (US$45). For air travel over a distance ranging from 1000 to 1400 kilometres, tickets were sold for INR3300 (US$52) and for travel beyond 1400 kilometres, tickets were sold for a maximum of INR3800 (US$60).[26] Based on a calculation by The Economic Times, on average, Jet Airways was selling 6400 tickets per day, or 14 tickets per flight, at those discounted rates. According to the news agency, several Indian travel sites started experiencing severe issues following a sudden increase in bookings. MakeMyTrip chief operating officer Keyur Joshi said that this move would help airlines increase aircraft occupancy from 75% to 85%.[27] However, soon after the sale, the airline's market value started going down.[28] This drop in market value was considered to have happened because of the indefinitely postponed Etihad deal. The stock had fallen by 18% in a period of one week. Economic Times reported that "The froth that developed around Jet stock was largely deal driven and has now fizzled away."[29]

In August 2014, Jet Airways announced that it is discontinuing its low fare arm JetKonnect and JetLite making Jet Airways 3rd full service airline in India besides Air India and Vistara.

Jet Airways Boeing 777-300ER at San Francisco International Airport

Corporate affairs and Identity

Jet Airways's head office is located in the Siroya Centre in Andheri, Mumbai.[30] Jet Airways's head office was previously located in the S.M. Centre, a rented, unmarked six-storey building in Andheri.[31][32] In 2008 Robyn Meredith of Forbes stated that the complex was "as shabby as [Jet Airways] CEO Naresh Goyal's home is posh" and that the complex was "In need of a fresh coat of paint". The complex was 15 minutes driving time from Chhatrapati Shivaji International Airport.[32] In 2013, it was announced that Etihad Airways would buy a 24% stake in the airline through preferential allotment of shares.[33]

Subsidiaries

JetLite

JetLite was a wholly owned subsidiary of Jet Airways. It was established as Sahara Airlines on 20 September 1991 and began operations on 3 December 1993 with two Boeing 737-200 aircraft. Initially services were primarily concentrated in the northern sectors of India, keeping Delhi as its base, and then operations were extended to cover all the country. Sahara Airlines was rebranded as Air Sahara on 2 October 2000. On 12 April 2007 Jet Airways took over Air Sahara and on 16 April 2007 Air Sahara was renamed as JetLite. JetLite operated a fleet of mixed owned–leased Boeing 737 Next Generation aircraft and Bombardier CRJ-200ER. JetLite ceased operations on 25 March 2012 after merger with Jet Konnect.[34] The Bombardier jets were phased out but the Boeings remained in service and operated for JetKonnect. JetLite offered a buy on board service called JetCafé,[35] offering food for purchase.

JetKonnect

JetKonnect, formerly Jet Airways Konnect, the low-cost brand of Jet Airways, was launched on 8 May 2009.[36] It operated a fleet of Boeing 737 Next Generation aircraft. The rationale for launching Jet Konnect was to close down loss-making routes and divert the planes to more profitable routes with higher passenger load factors. Jet already ran a low-cost airline named JetLite. According to Jet Airways, the decision to launch a low-cost brand instead of expanding the existing JetLite was taken to avoid the regulatory delays associated with moving excess aircraft and assets from Jet Airways to JetLite, which have separate operating codes. Jet Konnect offers a no frills flight where meals and other refreshments have to be purchased on board. To identify if the flight is a full service or Konnect the flight numbers for Konnect are in the series 9W 2000-2999.[37] Jet Airways merged the JetLite brand into Jet Konnect on 25 March 2012.[34] Jet Airways offered eight business class seats in Konnect to cash in on Kingfisher Airlines' woes.[38] In December 2012, Jet Airways placed an order for 5 ATR 72-600 aircraft to "enhance regional connectivity." The first aircraft was delivered the same month, leased from GECAS and was operated for JetKonnect.[39]

Jet Airways announced on 11 August 2014 that it would phase out Jet Konnect by the end of the year as part of plans to reposition itself as a uniform full-service operator.[40] On 1 December 2014, Jet Konnect was fully merged with Jet Airways with complementary meal services to take on the competition from the new airline Vistara which was then to start it operations.[41]

Destinations

Jet Airways serves 47 domestic destinations and 22 international destinations, a total of 69[42] in 19 countries across Asia, Europe and North America. Short-haul destinations are served using Boeing 737 Next Generation. ATR 72-500s are used only on domestic regional routes, while long-haul routes are served using its Airbus A330-200 and Boeing 777-300ER aircraft. London, England was the airline's first long-haul destination and was launched in 2005. Since 2007 Jet Airways has had a scissors hub at Brussels Airport in Belgium for onward trans-atlantic connections to Canada and the United States.

The recession forced Jet Airways to discontinue the following routes: Ahmedabad–London, Birmingham-Brussels, Amritsar–London, Bangalore–Brussels, Mumbai–Shanghai–San Francisco and Brussels-New York City.[43] It also had to put an indefinite delay on its expansion plans. Jet Airways was forced to lease out seven of its ten Boeing 777-300ERs to survive the financial crunch. Due to the recession all flights to North America were operated on an Airbus A330-200 replacing the Boeing 777-300ERs. It also had to sell a brand-new, yet-to-be-delivered Boeing 777-300ER in 2009 and had to defer all new aircraft deliveries by at least two years. The airline planned to restore the Mumbai-Shanghai route by the end of 2011 but never went through with it.[44] As the economic crisis in the eurozone countries worsened, Jet also closed the Delhi-Milan route.[45] Jet Airways relaunched service to New York's JFK International Airport and San Francisco via Abu Dhabi on May 1, 2014, and November 18, 2014, respectively, using its joint venture relationship with Etihad Airways.[46]

Jet Airways Airbus A340-300 at London Heathrow Airport in 2005 with the 1993-2007 livery

Also, Jet Airways will introduce the Mumbai-Paris route using the Airbus A330 aircraft from Mid May 2014 - a mid-day departure from Mumbai to reach evening in Paris CDG and Leaving CDG Paris in night arriving next morning in Mumbai similar to Air India's schedule on Delhi-Paris route.

Codeshare agreements

Jet Airways has codeshare agreements with the following airlines (as of April 2015):[47]

Jet Airways also has a codesharing agreement with Thalys European rail service.[54]

Effective 1 February 2014, the U.S. Federal Aviation Administration lowered India's aviation safety rating to a Category 2. As a result of the FAA action, all U.S.-based airlines are required to suspend all codeshare cooperation with any India-based airlines. This FAA decision is country specific for India, not airline specific. [55] [56]

On April 13, 2015, The FAA announced its revised safety rankings in which India was promoted to Grade A countries with respect to aviation.[57]

Fleet

4 Airbus A330s parked at Delhi Airport
Jet Airways Boeing 777-300ER with the present livery
Jet Airways Boeing 737-800

As of March 2015, the Jet Airways fleet consists of the following aircraft:[58][59][60][61]

Jet Airways Fleet
Aircraft In Service Orders Passengers Notes
F J Y Total
Airbus A330-200 8 —
— 30 196 226 2 Dry Leased to Turkish Airlines and 3 dry leased to Etihad Airways
Airbus A330-300 4 — — 34 259 293
ATR 72-500 15 — — — 62 62
——6868
ATR 72-600 3 — — — 68 68
Boeing 737-700 10 — — 8 126 134
Boeing 737-800 60 8 — 16 138 154 One (VT-JGA) stored following landing gear incident [62]
—8162170
Boeing 737-900 2 — — 28 138 166
Boeing 737-900ER 4 – — 8 178 184
Boeing 737 MAX 8 — 50[63] TBA Entering service in 2017
Boeing 777-300ER 10 — 8 30 274 312 5 Dry Leased to Etihad Airways
830312350
Boeing 787-9 — 10 TBA Deliveries starting 2017-2018[64]
Total 116 68

Livery

1993–2007

Jet Airways' original livery was Navy Blue, Light Grey and Chrome Yellow. The top and bottom of the aircraft were painted in light grey and had the flying sun logo in the navy blue background.

2007–present

Jet Airways' current livery was introduced in 2007.[65] The design retained the dark blue and gold-accented colour scheme of Jet Airways' previous corporate identity, along with the airline's "flying sun" logo.[65] The new livery, created with Landor Associates, added yellow and gold ribbons. A new yellow uniform was simultaneously introduced, created by Italian designer Roberto Capucci.[65] Jet Airways introduced its new identity in conjunction with a global brand re-launch which included new aircraft and seating.[65] Jet Airways unveiled India's first Disney branded Boeing 737 on 9 July 2012.[66]

Services

Cabin

International long haul

First Class on board the Boeing 777-300ER

With the arrival of its new Airbus A330-200 and Boeing 777-300ER aircraft, Jet Airways has introduced a new cabin with upgraded seats in all classes. The Airbus A330-200 aircraft have two classes: Première and Economy. The Boeing 777-300ER aircraft has three classes of service: First, Première (Business), and Economy. Being a Full Service Airline, meals are served on all classes of travel.

First Class

First class private suites are available on all Boeing 777-300ER aircraft. All seats convert to a fully flat bed, similar to Emirates or Etihad first class seat. It was the second airline in the world to have private suites. All seats in First have a 23-inch widescreen LCD monitor with audio-video on-demand systems (AVOD), BOSE noise cancelling headphones, in seat power supply, and USB ports etc. Jet Airways is the first Indian airline to offer fully enclosed suites on its aircraft; each suite has a closable door, making for a private compartment.

Première
Première on board the Boeing 777-300ER

Première (Business Class) on the Airbus A330-200 and Boeing 777-300ER international fleet has a fully flat bed with AVOD entertainment. Seats are configured in a herringbone pattern (1-2-1 on the Boeing 777-300ER, and 1-1-1 on the Airbus A330-200), with each seat offering direct access to the aisle. Première seats on the A330-200s leased from ILFC are configured differently in a 2-2-2 non-herringbone pattern. Each Première Seat has a 15.4-inch flat screen LCD TV with AVOD. USB ports and in-seat laptop power are provided. All seats are standard recliner business-class seats with a few newer aircraft with electronic recline and massager.

Economy Class

Economy class on Jet's A330-200/777-300ER aircraft has 32-inch seat pitch. Seats on the A330-200/777-300ER have a "hammock-style" net footrest. The cabin is configured in 2-4-2 abreast on the Airbus A330-200, and was recently changed to 3-4-3 on the Boeing 777-300ER from 3-3-3 to increase revenue. Each Economy seat on the A330-200/777-300ER has a personal 10.6-inch touch screen LCD TV with AVOD.

All three classes feature Mood lighting on the Airbus A330-200 and Boeing 777-300ER, with light schemes corresponding to the time of day and flight position.

JetScreen IFE in Economy class on board a Boeing 737-800

International short haul & Domestic

Boeing 737 Next Generation aircraft are configured in Première and Economy Classes. The ATR 72-500 have Economy class configuration only. The Première features 40-inch extra-wide seats with a personal Widescreen LCD attached to each seat. The Première cabin is configured in a 2-2 abreast pattern. Jet Airways Economy class on its Boeing 737 Next Generation features 30-inch seat pitch with personal Widescreen LCD behind each seat. Jet Airways was the World's first airline to introduce in-flight entertainment systems on the Boeing 737 aircraft. The Economy class cabin is configured in a 3-3 abreast pattern on the Boeing 737 Next Generation and 2-2 abreast pattern on the ATR 72-500.

In-flight entertainment

Jet Airways' Panasonic eFX IFE system on board the Boeing 737-700/800 and Panasonic eX2 IFE system on board the Airbus A330-200/Boeing 777-300ER, called "JetScreen", offers audio video on-demand programming (passengers can start, stop, rewind, and fast-forward as desired). It has over 100 movies, 80 TV programmes, 11 audio channels and a CD library of 125 titles. The system operates via individual touchscreen monitors at each seat, and is available in all classes.[67] In late 2012, Jet introduced a feature on their Airbus A330-300, called eXport. eXport allows passengers to plug-in their personal Apple devices such as iPods, iPads and iPhones through an eXport socket located just below the video screen. This would allow passengers to access their own media during the flight.[68]

Airport lounges

Jet Airways Lounges are offered to First and Première Class passengers, along with JetPrivilege Platinum & Gold card members. The international lounge at Brussels has showers, business centre, entertainment facilities and children's play areas.[69] Lounges access is offered at the following locations:[70]

Awards and achievements

According to.[71]

Incidents and accidents

Controversies

Issues with US authorities

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 15 November 2006. Jet was initially 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 US 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.[76]

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 non-resident Indian (NRI) founder and chairman.[77] 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 or own minority stakes in Indian carriers.[78]

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 Bombay Stock Exchange in 2005 to enable it to reduce the debt 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 wide-bodied 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%.[79] 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.[76]

British contractor controversy

Another controversy arose when Asmin Tariq, a contractor who was working for the airline as a security agent at 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 10 August 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 to New York, Newark and Los Angeles.[80] Asmin Tariq had been arrested along with the other 20+ suspects and is now in British police custody. In addition, he has 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.

August 2014 investigation

In August 2014, two pilots were suspended after a plane carrying 280 passengers dropped 5000 feet. Indian air regulators issued an investigation on the situation. The plane was en route from Mumbai to Brussels. The captain was in "controlled rest" which is permitted under aviation laws. The co-pilot, responsible for the flying the aircraft while the captain was sleeping, "claims she was busy on her electronic flight bag and didn't notice the plane had lost altitude."[81]

See also

References

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  71. ↑ "Awards". Jetairways.com. 19 August 1996. Retrieved 7 October 2012.
  72. ↑ "Aviation Safety Network Accident Description". Aviation Safety Network. Retrieved 5 September 2013.
  73. ↑ http://www.mirror.co.uk/news/world-news/passengers-horror-aircrafts-landing-gear-5513329
  74. ↑ http://avherald.com/h?article=484b3f02&opt=0
  75. ↑ http://aviation-safety.net/wikibase/wiki.php?id=175359
  76. ↑ 76.0 76.1 FT.com / Home UK / UK - Jet Airways denies links with al-Qaeda
  77. ↑ Jet's Goyal owns 18 firms apart from Tail Winds
  78. ↑ "Jet Airways (India) Private Limited – International Directory of Company Histories – Find Articles at BNET".
  79. ↑ Is Jet IPO a good bet?
  80. ↑ "UK seeks information on Jet- Jet Airways-'J' Companies-Companies A-Z-News By Company-News-The Economic Times". The Times of India.
  81. ↑ "Jet Airways plane plunges 1500 metres over Turkey". NEWS.com. 15 August 2014. Retrieved 16 August 2014.

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