Jet Airways cuts capacity on international operations
11 Aug 2008
India's largest private carrier, Jet Airways, says it will slow down its international expansion programme until the end of 2009 in an attempt to reduce high operating costs. The carrier said it will ground aircraft and cut capacity on some of its international routes.
According to Jet CEO, Prock-Schauer, "In the lean season and in a high-fuel-cost environment, the savings on variable costs on operations will significantly outweigh the fixed cost on the ground. We will have some aircraft capacity on the ground in the short term".
Last month, the carrier switched aircraft on its Brussels services, replacing B777s with A330s. The carrier now plans to cut capacity on services to Kuala Lumpur, replacing A330s with smaller B737 aircraft.
Earlier, the airline's chief commercial officer, Sudheer Raghavan, speaking at the launch of the carrier's Dubai and Saudi Arabia services, had said that the carrier had completed its "first phase of international expansion", and that it would now focus on consolidating its international operations until the end of 2009. This is when it is scheduled to get "a fresh batch of wide-bodied aircraft".