will cancel around 40 flights a week on seven Gulf routes from Wednesday, as it struggles to raise funds and stay afloat. The airline will cut flights to Doha, Muscat, Abu Dhabi and Dubai from various domestic cities, including Doha-Kochi; Kozhikode-Thiruvananthapuram; Abu Dhabi-Lucknow; Abu Dhabi-Mangalore; Mangalore-Dubai and Delhi-Muscat
Jet Airways suspends services for economy class
Cash-starved Jet Airways has temporarily suspended its complimentary lounge services to JetPrivilege platinum and gold members travelling in economy class. The revised complimentary lounge access policy, which is not applicable for flights operated by its codeshare partner carrier, will come in effect from Dec 1.
A Jet Airways spokesperson said the airline “has undertaken a comprehensive review of its network, whereby it will move from uneconomical routes to more profitable ones, to be more closely related to the specific markets of demand characteristics. , Gulf operations are being optimized to focus on connectivity at our hubs in Mumbai and Delhi instead of point-to-point connectivity.
Timeline: The Turbulent journey of Jet Airways
While intense pricing competition, weak rupee and rising fuel costs have hurt Indian airlines like IndiGo owned by InterGlobe Aviation Ltd and SpiceJet Ltd, Jet Airways is a league of its own.
Concentrating capacity over Jet Airways’ hubs will increase frequencies to offer greater choice to guests, while improving our asset utilization and resource productivity. ”
“The airline launched its first daily direct service effective from December 1 to Pune to Singapore and hosted enhanced frequencies on Delhi to Bangkok, Doha, Singapore, Kathmandu and Mumbai to Doha, Singapore and Dubai during the winter schedule,” he added.
The airline says pulling out of some Gulf routes will not affect its operations of scale. “We also acknowledge the interim inconvenience the above changes may cause the travel itineraries of our guests. We would like to reassure them that we will take all measures, including proactive communication and re-accommodations, to minimize such inconvenience,” the spokesperson said .
Jet has been facing a serious cash crunch due to which is delayed salary payment to pilots, aircraft maintenance engineers and senior management. The airline’s founder-promoter
is the most successful investor – Tata Group; Etihad and Air France-Delta-KLM
“Jet is too big to shut down. Goyal has held discussions with the potential investors,” said a source. While selling to Tata means the substantial ownership and effective control (SOEC) remains with an Indian entity, the sale of the foreign airlines will mean that a clause that satisfies an Indian entity.
Etihad has 24 percent stake in Jet and talks are going to see under what conditions would it be to 49 percent. In June 2016, NDA had allowed 100% FDI in airlines with a cap that foreign airlines’ stake should not be beyond 49 percent and rest is owned by a non-airline foreign entity. But the SOEC of such airlines should be the Indian partners, like it is the Tatas in Vistara where
has 49 percent stake
Jet has not commented on this issue as it speculation
Some potential investors want to go For now, it looks like the Tatas – who were reportedly keen that Goyal exit the airline – have taken a back seat and talks with Etihad being more vigourously