Jet Airways delays global expansion plans – to launch cargo operations

Shanghai: Soaring oil prices have forced India's largest private carrier, Jet Airways, to put its international expansion plans on hold until the end of next year, according to its chief commercial officer, Sudheer Raghavan.

Speaking to the media after the launch of the airline's prestigious Mumbai-Shanghai-San Francisco flight, Ragahavan said that the carrier would probably just launch the Dubai route in the near future and then focus on consolidating its international operations until the end of 2009, when it is due to take delivery of the next batch of new aircraft.

Raghavan clarified that Jet doesn't intend to slash routes or cancel aircraft orders.

As of May-end, the carrier has outstanding orders for eight Airbus 330s and 33 Boeing aircraft, including 10 787-8 Dreamliners.

The carrier, along with its JetLite low-cost subsidiary, operates a fleet of 108 aircraft, with Jet operating 84 of these aircraft.

According to Raghavan, Jet Airways intends to invest around $10-15 million to set up a cargo unit, which would likely be launched sometime in the second half of that year. He said that Jet would convert some of its passenger planes into freighters, instead of ordering new aircraft.

The cargo unit would fly at least three leased Boeing 737 converted passenger planes, which it will take from JetLite.

Raghavan said that talks with Deutsche Lufthansa AG, Germany's biggest carrier, about forming a cargo venture ``didn't work out.'

He also said that Jet is in talks with Air China, China Eastern Airlines and Shanghai Airlines on possible code-sharing deals.

According to Raghavan, the carrier is also considering plans to tap new sources of revenue, including advertising on boarding passes and charging for check-in luggage.