India: Jet losing money but expects to top Air India

Jet Airway CEO Wolfgang Prock-Schauer is expecting another loss in the current financial year but believes the carrier will pass Air India in terms of revenue for the 12 months ending 31 March, 2009, to become India’s leadingairline. Jet, which lost US$100 million on US$2.3 billion in revenue for the yearended 31 March, does not […]


Air India Jet Airway loss Wolfgang Prock-Schauer


Jet Airway CEO Wolfgang Prock-Schauer is expecting another loss in the current financial year but believes the carrier will pass Air India in terms of revenue for the 12 months ending 31 March, 2009, to become India’s leadingairline.

Jet, which lost US$100 million on US$2.3 billion in revenue for the yearended 31 March, does not expect to be profitable in the current fiscal year.

All of India’s carriers are under pressure owing to overcapacity and farecutting as well as high fuel prices. Th ey collectively lost an estimated US$1 billion for the financial year ended 31 March. Prock-Schauer said that India’s airlines have reduced capacity by 15 per cent this year. “I believe just three big carriers, Jet, Air India and Kingfisher, and maybe two LCCs will survive,” he said.

Jet has reached its target of a 50/50 split between its domestic and international routes and will start a new Bangalore- Brussels service in October.

“With its second batch of new widebodies, five 777-300ERs and five A330-200s being delivered between 2009 and 2011, the carrier is aiming to extend its presence in Europe which includes establishing a second hub. Besides its current European hub in Brussels, it is considering a second hub in Germany, northern Italy or Austria.