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Etihad’s proposed acquisition of Italian carrier Alitalia will help Jet Airways expand its European operations, said aviation experts.
At present, Jet Airways has direct flights from India to London, Brussels and Paris. It has a code-sharing alliance with Air France and Brussels Airlines for destinations in Europe.
Jet Airways pulled out Delhi-Milan service in February last year due to losses but has now signed a code-sharing pact with Alitalia, allowing it to sell seats on domestic Italian flights via Rome. Air India is the only airline with a direct flight between the two countries.
The proposed alliance between Etihad and Alitalia gives the Gulf carrier an opportunity to access Alitalia's network in Europe and Americas, while Alitalia will be able to expand its presence in Asia. Currently, the Italian airline flies only to Japan.
Currently, there have been no discussions regarding Jet Airways or Alitalia restoring direct service between India and Italy but analysts expect Jet Airways would get bigger traffic feed on the route if it resumes the service. The other option for airlines is additional flights between Abu Dhabi and Italy, currently served by Alitalia and Etihad.
Etihad, like a majority of non-European airlines, flies to Milan Malpensa airport, one of the two serving the city. Linate airport, which is closer to Milan, is used for regional and intra-Europe flights.
About one lakh Italian tourists visit India each year, making it the fourth largest contributor of tourists from West Europe. "Jet Airways would be shielded from capacity and load issues with a dual end-to-end support with Etihad. Air India (which operates a direct flight to Italy) would not be able to sustain traffic declines when Jet-Etihad-Alitalia would provide far better passenger flight and connection options,'' said aviation expert Saj Ahmad.
"Etihad continues to consolidate its position and with Alitalia, its network becomes larger and more competitive. The development is positive for Jet Airways as well,'' said Kapil Kaul of Centre for Asia Pacific Aviation.
"The agreement with Alitalia is a further step in Jet Airways’ strategy of growing on the global marketplace,'' said Gaurang Shetty, senior vice-president (commercial) Jet Airways in a statement.
An Air India executive said, "Our loads on the route are increasing. Initially, the loads were about 60 per cent but the flight is a just a month old. We have an advantage, as we offer direct connection between Delhi-Milan and Rome. We do not see much impact on our flight but it is too early to comment about Etihad's Alitalia acquisition."
