16 Aug 2015 07:30
The strategic investment of Etihad Airways into Jet Airways is delivering strong results for both airlines across areas including network growth, revenue enhancement and operational and cost improvements, senior executives from the airlines said today.
- Jet Airways and Etihad Airways now the number one operators out of
- Collaboration has grown strongly, bringing greater passenger
number significant expansion of networks, flight connections increase access to
and from India
- Synergies across the business significantly helping Jet Airways’
Speaking at a media conference in Mumbai, Naresh Goyal, Jet
Airways’ Chairman; James Hogan, Etihad Airways’ President and Chief Executive;
and Cramer Ball, Jet Airways’ Chief Executive also gave other details of the
significantly improved results for the Indian carrier.
The two airlines together now offer more flights to and from India
than any other airline, with a 21 per cent share of the country’s booming international
air travel market.
Since Etihad Airways’ 24 per cent investment in Jet Airways was
finalised in November 2013, the two airlines have increased from nine to 15 the
number of direct routes between India and Abu Dhabi, introduced wide-bodied
aircraft on key routes, and increased to multiple daily flights in some
Addressing the media Mr Goyal, Mr Hogan and Mr Ball said that the
airlines now offer a combined total of 40,000 seats each way, each week between
India and Abu Dhabi. This has resulted in more choice and better connectivity
for guests travelling out and into India from across the world.
Naresh Goyal said: “Our
strategic collaboration with Etihad Airways includes network integration, joint
sales effort, sharing of resources, collaborated procurement and knowledge
transfer. All of these have enabled us to leverage cost advantages and economies
of scale to the eventual benefit of our guests, as well as our employees.”
with Etihad Airways, we now operate over 4,300 international flights a month,
more flights to/from India than any other airline and provide our guests with
an unparalleled global and domestic network, with perhaps the best and most
In terms of the combined network, Jet Airways now has its 9W code
on Etihad Airways flights to 33 destinations across the world, while Etihad
Airways now places its EY code on 60 Jet Airways routes, mostly within India.
The airlines have also aligned their schedules between Abu Dhabi
and India to improve flight connectivity between their networks, substantially
increasing choice for passengers on both airlines.
James Hogan said: “Before our equity deal with Jet Airways, we had
two per cent of the international traffic out of India. Today, with Jet
Airways, we have 21 per cent of the market, and combined, we are the dominant carriers
out of India.
“Jet Airways is now our number one equity partner for revenue and
passenger contribution on Etihad Airways. India is now Abu Dhabi’s number one
source market for international visitors.”
He added that the first year of the partnership had delivered
significant benefits for Jet Airways, for consumers, and for the Indian economy.
“Jet Airways is a perfect partner for us. It is a strong,
recognisable brand in India, has an established network and infrastructure, a
skilled workforce and a large customer base.
“Etihad Airways is an active investor and a strategic partner. We
provided fresh capital and financial stability for Jet Airways, assisted global
network growth, increased flight connectivity, and delivered efficiencies
through activities including joint procurement and resource sharing.”
In the first six months of 2015 Etihad Airways transferred more
than 235,000 guests onto Jet Airways’ network into India through its codeshare
partnership, with Jet Airways providing 182,000 guests onto the Etihad Airways
The improved Jet Airways performance followed a number of other
key strategic moves that had been taken, including the airline’s return to
being a single brand with a full service offering, the standardization of its
Boeing 737-800 fleet and a refreshing and reconfiguring of cabins on its Airbus
A330 and Boeing 777 aircraft.
Cramer Ball said that Jet Airways’ return to single brand full
service product strategy has been successful: “In an increasingly competitive
environment we are adding value through our consistent full service product
supported by the ‘Guest First’ service philosophy.”
“Our overall value proposition that includes complimentary lounge
access at airports for frequent fliers, quality inflight catering across all
flights and an award winning loyalty programme is receiving very positive
acceptance in the market,” he added.
Further benefits accrued to Jet Airways through membership of
Etihad Airways Partners, a new coalition of like-minded airlines, working
together to align their networks, schedules, and loyalty rewards programs, and
seeking opportunities to cooperate on activities which reduce costs and
Other members of Etihad Airways Partners are Etihad Airways,
Alitalia, airberlin, NIKI, Air Serbia, Air Seychelles and Etihad Regional.
Mr. Goyal said: “The
benefits of our alliance with Etihad Airways will continue to emerge,
highlighting the significance of this strategic relationship. We will continue
to work towards building a stronger base for the future by taking decisions
that are in the long term interest of all our shareholders.”
Mr. Hogan concluded: “Our partnership strategy has provided value
to Jet Airways in excess of USD2.5 billion and is delivering lower operating
costs and greater efficiency for our two airlines, and contributing strongly to
the Indian economy.
“Most importantly we are delivering more choice to consumers
flying to, from and within India,” he said. “In just over one year, our
partnership has made significant progress - but there are still many challenges
to tackle, but also exciting opportunities ahead.”