Jet Airways' Naresh Goyal would like to pick up another domestic carrier
05 Apr 2008
Mumbai: Naresh Goyal, chairman, Jet Airways, the country's largest private airline, expressed his willingness to acquire smaller domestic carriers that might be on offer in order to consolidate his business further.
Speaking at a press conference, he also said that Jet was working on setting up a separate company that would launch the airline's cargo business in the next six months. Jet's expansion plans for international operations were announced at the press conference.
''The markets do not remain the same forever but still, anything that makes sense to Jet Airways' shareholders will make sense for the promoters as well,'' Goyal said.
Currently, Jet holds 29 per cent of the domestic Indian market, along with subsidiary JetLite, formerly Air Sahara, which it bought last year. Air Sahara was Goyal's first acquisition.
Jet's strategy for the cargo business includes acquiring five to six aircraft and focusing on express cargo, which guarantees delivery time. So far, there are no players in this segment.
Jet says that the business may account for 15 per cent of total revenues in the next six to twelve months, compared to the current eight per cent. The cargo business will also use aircraft operating on the domestic circuit for belly cargo apart from new purchases.
It will also tie up with regional carriers to pick up loose cargo, which it would then transfer to bigger aircraft. The logistics involved in a seamless transfer are being worked out.
Jet Airways plans to go ahead with its twice-delayed rights issue when market conditions are favourable, Naresh Goyal said.
