Naresh Goyal-controlled Jet Airways has posted a net profit of Rs 3.52 crore for the three months ended June 30, while Vijay Mallya’s Kingfisher Airlines has suffered a net loss of Rs 186 crore during the same period.

The contrasting fortunes of the two rivals underscored the fact that Jet Airways has been able to pull out faster from last year’s downturn. Analysts expect the private airlines to post robust growth this fiscal with the airline business growing over 22 per cent.

Jet reported a total income of Rs 2,965 crore. In the corresponding quarter of the last year, it had suffered a net loss of Rs 225.3 crore on a much lower income from operations of Rs 2,398 crore. Jet has clocked three straight quarters of profits though profit in the first quarter is lower than the previous two quarters. The airline’s net profit was Rs 58 crore in the three months ended March 31 and Rs 100 crore in the preceding quarter.

“I am a little disappointed by Jet’s performance. I expected them to post a net profit of at least $7-8 million as this has been a phenomenal three months for them,” said Kapil Kaul, CEO of the Centre for Asia Pacific Aviation.

Kingfisher Airlines Booking total revenues stood at Rs 1,685 crore in the first quarter against Rs 1,398 crore in the year-ago period.

Analysts attributed three reasons for the contrasting fortunes of the two rivals.

“Jet launched its international operations in 2005 and has done very well recently. Kingfisher Airlines Booking only bolstered its global presence in March and still has to catch up,” Kaul said.

Kingfisher is also saddled with high interest payouts that translate into a structural burden, said an analyst with a Mumbai-based brokerage. The third reason for the lower income and profit posted by Kingfisher is the size of their respective fleets.While Jet Airways has 89 aircraft, Kingfisher has 66 planes.

“Till that is sorted out, the airline will suffer,” he added. Kingfisher paid out interest of Rs 321 in the first quarter of this year compared with Rs 212 crore in the corresponding quarter of the last year.

Jet’s interest burden was not insignificant either. The airline recorded interest and finance charges of Rs 274 crore in the three months ended June 30.

The third reason for the lower income and profit posted by Kingfisher compared to Jet is the size of the respective fleets of the two rival airlines. While Jet Airways has a fleet of 89 aircraft, Kingfisher has 66 planes.

Kaul, however, expects Kingfisher to be back in the black by the end of the current fiscal as its domestic operations gain traction and its international routes stabilise.

This growth has been achieved through the integration of operational efficiencies network planning, strategic code shares, marketing initiatives and on-time performance, all of which has helped the airline stay a step ahead, said Nikos Kardassis, CEO, Jet Airways.

Though the industry is not raking in huge profits, they are nevertheless reducing losses significantly, writes B S Arun

After seeing their earnings touch rock-bottom owing to a series of issues including the recent worldwide recession, there seems to a faint light at the end of the tunnel for the airlines industry both in India and around the globe. Not that the industry is raking in huge profits but losses are being reduced significantly. And that includes the crisis-ridden Air India!

Read full story at Deccanherald

JetLite, the wholly owned subsidiary of Jet Airways India Ltd, has also posted good seat factors of 85.3 per cent carrying over 4.02 lakh passengers in the month of May 2010. JetLite’s code share with Jet Airways has enabled the airline to enhance its penetration of the travelling market.

According to Nikos Kardassis, CEO, Jet Airways, “A record breaking eight months of consecutive growth ratifies the fact that Jet Airways has been able to capitalise on the upswing in domestic and global air traffic. This is largely due to the effective network planning and strategic marketing initiatives implemented in the past year which have enabled us to stay a step ahead of the growth curve in the Indian aviation sector. Our enhanced domestic and international network capabilities, coupled with strategic code-shares, have further helped us deliver seamless travel solutions to our discerning guests. Most importantly, the unwavering dedication and commitment displayed by the Jet Airways team has played a decisive role in Jet Airways consolidating its leadership position. A marked increase in demand for our premiere segment and growing popularity of the recently launched Konnect Select offering, further exemplifies our understanding of the dynamic needs of the Indian consumer.”

News Source – travelbizmonitor.com

According to Patna airport director Arvind Dubey: “Introduction of low-cost carriers, an increasing number of well-to-do Biharis settled outside Bihar who are fly to their native state and an improved law and order condition are the main contributors to this success story.”

There appears logic in his claim as low-cost carriers like Kingfisher Red, Jet Airways Konnect and IndiGo are offering daily flights to major destinations like Delhi, Mumbai, Bangalore and Kolkata making things easy for those opting for aerial routes.

Aviation industry sources said increased economic activities in Bihar and investment opportunities too have contributed in a big way to this success story as many non-Biharis who earlier hesitated visiting the state are now coming here to explore business opportunities.

Reports filtering in on Sunday said key members of ministerial panel under FM Pranab Mukherjee — Indian railway minister Mamata Banerjee and agriculture minister Sharad Pawar — were opposed to the idea of allowing oil companies to set pump prices in line with global markets or raise fuel prices substantially. Fertiliser minister M K Alagiri is unlikely to support any steep rise in prices, as TN goes for assembly polls next year.

read full story at – Times of India

Fifty passengers began praying fervently, when the aircraft they were travelling in, started shuddering in bad weather, soon after it took off from Kochi airport yesterday.

Seven days after the Mangalore air crash that killed 158 persons, the memory returned to haunt passengers of a Jet Konnect flight 2734 that was headed towards Chennai from Kochi.

Jet Airways Konnect flight 2734 takes off from Kochi and heads towards Chennai. ILLUSTRATIONS/SAMEER PAWAR

Twenty minutes into the journey, due to rain and bad weather, the flight starts shaking

Panic-stricken passengers pray, hoping that the Mangalore crash would not be repeated

The ATR aircraft, small in size with 50 passengers, two crew members and pilot on board had just taken off, when it started raining and the airplane started shaking.

Eyewitnesses said almost all the panic-stricken passengers were praying, hoping that the Mangalore crash would not be repeated. Some of the passengers started reciting the verses from their prayer books.

“Twenty minutes into the journey, and the flight suddenly started shaking. The cabin crew asked us to tie our seat belts. The memories of the recent Mangalore air crash suddenly came to my mind and I got scared. I observed a lady passenger, who was reading the Bible and was in tears,” said Shriprada, a passenger.

“The situation was tense in the flight. After 15-20 minutes the turbulence stopped and the flight landed safely at the Chennai airport by 9.20 pm,” Shriprada added.

Sources in the Chennai Air Traffic Control (ATC) explained that the climate was bad and the pilot was unable to control the flight movement initially.

When contacted Jet Airways spokesperson did not respond to our calls.

Jet Airways saw the best month ever for flights to India from the UK in March 2010, with seven months of consecutive growth since October 2009. The airline has been sustaining its seat factor for its international operations at over 75% reflecting continued high demand for Jet Airways’ award-winning product. Despite the turbulent economic climate, the carrier has continued to woo business guests onboard with ultra-high levels of service, making improvements in business class such as becoming the first airline to offer complimentary Dom Perignon Champagne.

The Indian market leader is now predicting that demand for business travel and front end traffic will help drive Jet Airways’ expansion in Europe.

Key priorities for 2010 for Jet include increasing expanding connectivity in the Middle East to match demand. A new daily flight to Doha, Qatar, from Delhi started in January 2010. Jet’s first daily direct service from Mumbai to Johannesburg launched on 14 April 2010, in time for the World Cup.