Jet Air may slash capacity further

Jet Airways, having already slashed 18-20 per cent of its fleet capacity in the winter schedule (October-February), is likely to further reduce capacity, especially if air traffic slips further. 

The airline may also consider leasing out some of its narrow-bodied - Boeing 737 aircraft if the current market situation does not improve, according to chief commercial officer Sudheer Raghavan. The airline currently owns 52 B-737s. 

The development came even as group chief executive officer Ravi Chaturvedi quit the company ahead of his scheduled departure. The airline told the Bombay Stock Exchange on Monday that "Ravi Chaturvedi has ceased to be the Group CEO of the company with effect from 25 March 2009, instead of 1 June 2009 as communicated earlier."

The carrier also told the BSE that well-known technocrat Satyan ('Sam') G Pitroda has ceased to be a director of the company from March 21, 2009.

Jet Air has already taken out nine of its wide-bodied aircraft from its fleet and leased them to foreign airlines. Raghavan said slipping traffic and ''irrational'' fares were hurting the airline. He added that the airline was not looking at re-launching any of the routes that have been taken off the network.

"We are currently consolidating our network. Any new routes will further put pressure on our operations. It would be foolhardy to launch new routes," Raghavan said on the sidelines of The Asian Route Development Forum hosted by the infrastructure development group GMR in Hyderabad on Sunday. 

Asked if his airline would report losses in the current quarter again, he replied, "We have not coped well. In all probability, yes."