Jet Airways, Etihad roll out strategic turn-around plans

TD Guest Writer

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L-R: Cramer Ball, Jet Airways chief executive officer designate, Naresh Goyal, Jet Airways chairman along with James Hogan, president and chief executive officer of Etihad Airways
L-R: Cramer Ball, Jet Airways chief executive officer designate, Naresh Goyal, Jet Airways chairman along with James Hogan, president and chief executive officer of Etihad Airways

In a bid to strengthen its financial positioning, Etihad Airways and Jet Airways have outlined plans for a major new turnaround strategy. This will look to ensure that Jet Airways returns to profitability in three years, as per a statement from the airline.

Both airlines also stand to benefit from cost savings and synergies in areas such as fleet acquisition, maintenance, product development and training, and continue to explore collaborative purchasing opportunities for fuel, spare parts, insurance and technology support.

Supporting the partnership, the Jet Airways Board recently approved a three-year business plan to reshape the airline. The plan incorporates a series of critical measures that lay foundations for a return to profitability, such as long-term network, fleet and product developments to optimise the airline’s domestic and international operations.

Focus areas for international operations will include network developments, including new services to markets such as Europe, China, Australia and Southeast Asia, expanded frequencies to existing routes and additional code-shares.

In addition, the domestic business model will improve connectivity across India and worldwide, while removing complexity in product and fleet, including standardisation and reconfiguration of the Boeing 737 fleet.

James Hogan, president and chief executive officer of Etihad Airways , said, “India represents a considerable opportunity for airlines worldwide, with more than 42 million international travellers reported last year and impressive future growth rates predicted by IATA. The challenge is ensuring that our industry is efficiently catering to rising demand, not only in India’s major destinations, but also smaller cities that remain largely unconnected and underserved.”

During the first half of 2014, more than 621,000 people travelled on Etihad Airways’ India services, representing an impressive growth rate of 51% in comparison to the same period last year.

The two airlines will commence a new marketing campaign this week, with the tag line – Flying India Forward- highlighting their collaborative offering for Indian travellers.

Klook.com

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