Jet Airways, a private carrier is planning to increase domestic low-fare capacity to 80 percent of the total fleet from present 72 percent. The airline company may also launch more budget flights for short-haul international routes. In order to do this, the airline is considering the possibility of merging its low-fare service brands called Jet Konnect and JetLite.
On the financial front, the airline has already converted about Rs 2,500 crore of local currency loans to dollar-denominated debt from last October, which would help it save about Rs 175 crore in interest costs in FY12. The airline is also in the process of converting a Rs 500-crore loan into US dollar denominated debt in the current fiscal and plans to repay about Rs 1,500 crore of debt this year. The company also plans to aggressively cut down on costs to improve profit margins.
At present the two leading players keep raising prices as there is almost a monopoly situation in the global distribution system market. So the airline company may explore the possibility of going with new global distribution system players or even adopt Internet-based methods which low-fare carriers have evolved.
Company Name | CMP |
---|---|
Interglobe Aviation | 4608.45 |
SpiceJet | 57.20 |
Global Vectra Helico | 286.95 |
Taneja Aerospace | 437.50 |
TAAL Enterprises | 2884.45 |
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