Jet submits plan to rationalise routes

After acquiring Air Sahara for $500 million, Jet Airways has now submitted a route network rationalisation plan to the Centre.

"In order to streamline the routes operated by the two airlines, a route network rationalisation plan has been prepared and submitted to the government for approval. It is likely to be implemented this quarter," a senior Jet executive said.

Jet has also started the process of rationalisation of market practices including common Jet Airways ticket stock, corporate and agency agreements, global distribution system (GDS) cost reduction and interline agreements.

"The integration of Jet Airways with Air Sahara is moving smoothly and Jet personnel are assisting the Sahara management as consultants in upgrading the product and improving operational efficiency and reliability," he said.

However, the Director General of Civil Aviation (DGCA) has not yet given the go ahead for the acquisition of Sahara by Jet. Sahara will be operated as a 100 per cent subsidiary, till the receipt of regulatory approvals and pending completion of the merger process, he said.

Amidst rumours that many Air Sahara pilots left to join an upcoming low-cost airline, a senior Jet executive said the airline has already drawn up a plan to absorb pilots, engineers, cabin crew, flight despatch officers, key managerial personnel and other Sahara staff.

Meanwhile, Jet has also hired Lufthansa Airlines engineering arm Lufthansa Technik to improve asset utilisation and technical reliability of the Air Sahara fleet.

"We need to ensure the Sahara fleet has the same technical reliability and safety measures that Jet has. We have already appointed a Lufthansa Technik team to provide necessary support," said a senior Jet executive.

He said various aircraft checks (C-check) for Air Sahara planes including CRJ and 737 is currently on and has assured availability of vendor support for spare parts.

Significantly, the term of the share purchase agreement and escrow account has extended by 90 days from March 23 to June 21 to enable obtaining of requisite approvals.

Jet has paid Rs 500 crore as advance to the selling shareholders against a pledge of 100 per cent of Air Sahara shares. This amount is refundable in the event of transaction not consummated.