Jet to double revenues from global operations

After Delhi, Mumbai and Chennai, Jet Airways is all set to connect Bangalore and Hyderabad to destinations in the United States, which will help double revenues to $1.5 billion from international operations in three years.

"We expect our revenues to double to $3 billion (about Rs 12,000 crore) from $1.4 billion (about Rs 5,600 crore) over the next three years. Of that, 50 per cent will be generated from our international operations. We will add 15 per cent new capacity year on year for the next three years," said Naresh Goyal, chairman, Jet Airways.

Interestingly, Goyal made it clear that he did not see a future for long-haul, low-cost flights. "Frankly, I do not see such flights happening. No one can fly cooped up in 29-inch seats and fly 17-18 hours. It is very difficult. It is the same aircraft, same airport, same costs and therefore not feasible," he said.

Goyal was replying to a question about long-haul, low-cost flights to Europe and the US by Munir Majid, chairman of Malaysia Airlines, at the Fortune Global Forum in the national capital today.

Jet Airways recently acquired Air Sahara and converted it into a 'value carrier' - positioned between a low-cost and full-service carrier - and rechristened it JetLite. JetLite operates low-cost flights to South-East Asia and the Gulf states.

Earlier this year, Jet Airways started flights from Delhi to Toronto and Newark and Mumbai and New York and added one more from Chennai to Toronto on Sunday. The airline is also looking at flights to San Francisco, Los Angeles and Washington DC. These flights will be connected through the hub in Brussels. The carrier is also looking to start operations to Dubai, Abu Dhabi and Muscat early next year.

Currently, Jet Airways has flights to eight international destinations (New York, Newark, Toronto, London, Brussels, Bangkok, Kuala Lumpur and Colombo) from Delhi, Mumbai, Chennai, Kolkata, Ahmedabad and Amritsar.

The carrier plans to expand operations to Brussels, adding significantly to its capacity to that destination.

Goyal said that once the India-Belgium treaty on civil aviation rights is formalised, flight frequency between the two counties would increase to 56 services a week from the current 21, strengthening it as a hub for Jet's continental ambitions.

Apart from its US flights through Brussels, Jet Airways also connects to 54 European destinations via Brussels through its codeshare with various airlines, Goyal said.