Jet Airways plans low-fare flights overseas
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Jet Airways plans to introduce low-fare flights to short-haul overseas destinations, a move that will likely help India’s biggest carrier by market share take on increasing competition from the low-fare carriers such as SpiceJet Ltd. and Indigo that have recently started flights on international routes.”Low-cost aviation is a reality globally and we have to be ready to face any such demand,” Sudheer Raghavan, Jet Airways’ chief commercial officer, was quoted saying toreporters, Asian Wall Street Journal reported.Raghavan also didn’t disclose the possible overseas destinations, but said the flights would cater to destinations that are less than five hours’ flying time from India, AWSJ said.Operating short-haul international flights will help Jet Airways increase yields as such routes are more profitable. A large number of Indians are travelling to neighbouring countries because of higher disposable incomes and cheaper tickets offered by low-fare carriers SpiceJet and Indigo.While SpiceJet started overseas operations last year, IndiGo got approval to fly on international routes by India’s federal government earlier this year, with flights starting from Sept. 1.Jet Airways currently operates full-services flights to 24 overseas destinations such as London, Singapore, New York and Brussels.Separately, Raghavan had said the carrier plans to increase its local low-fare capacity to 80%-85% of total domestic flights from 72% currently. The company also plans to reduce its non-fuel related costs by 20% to 25% in the current financial year through March to boost profitability.
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