Priority for fleet strength - Jet Airways chief

The domestic sky is not the limit for the seven-year-old Jet Airways. After capturing a sizable share of the regional market, the airline has now set its sights on becoming a sub-continental carrier.

Winner of many national and international awards since its inception in May 1993, the Mumbai-based Jet Airways has carved out a niche for itself in the domestic travel segment. The statistics speak for themselves. Between May 5, 1993 and June-end 2000, it has flown 19.35 million passengers. Flying to 39 destinations, the `premier' private carrier operates 195 flights within the country.

Jet Airways is now keen on extending its operations to neighbouring countries. Against this backdrop, its Chairman, Mr. Naresh Goyal, an NRI, revealed his business strategy to T. S. Shankar at his plush Central London residence recently. Excerpts from the interview:

QUESTION: Could you explain Jet Airways' growth since its inception to the present times when it is waiting to fly to global destinations?

ANSWER: From a modest beginning with four aircraft in May 1993, Jet Airways now commands a fleet of 30 aircraft, including 25 new generation Boeing-737-400, 700, and 800 series, with an average age of 2.7 years. There are plans to add two more Boeing-737s before the end of the year. In tune with our master business plan, we have ordered 10 more modern jets, all of which will be inducted between 2001 and 2003. This will take the fleet strength of new generation carriers to 20 in three years. The deal, estimated to cost $1 billion, would be routed through the U.S. Exim Bank.

Our objective is to provide air links to all tourist destinations, especially the lesser known ones, in the country within the next two to three years. In other words, it means linking the length and breadth of the country.

Our plans to fly outside India will materialise only if the Government changes its attitude. We want to capitalise on our brand equity and customer loyalty in India to extend our operations to neighbouring regions.

Q: Surviving in the highly competitive airline sector is difficult, especially with players like Indian Airlines. What is your success strategy?

A: The driving force in any service industry is always the customers. Basically, it is the management and the teamwork that make a difference. Moreover, we attach a lot of importance to our human resources. It is a combination of all these factors that has helped us attain our present status of the ``Best Domestic Airline''.

This is a continuing process and we feel we still have to improve our services. There is no room for complacency. We have to set new goals to achieve our ultimate objective of being known as the world's best airline, making every Indian proud.

Q: Are you happy with the existing Civil Aviation policy and what are your suggestions to make it more pragmatic, especially towards offering a level-playing field for all operators?

A: The Jet Airways plan of connecting destinations in the sub- continent such as Colombo and Bangkok largely depends on the proposed changes in the policy. Allowing private domestic air operators to fly across the national boundary means foreign exchange earnings for the country.

Q: What are your comments on the prevailing imbalance in the air fare scenario, especially in the domestic sector vis-a-vis the international sector?

A: Imbalance is the right word to describe the prevailing for air fares. On our part, we have been discussing with the Government for several years the aviation turbine fuel (ATF) price. We pay over $2.10 per gallon as compared to foreign carriers. The difference is not only huge but makes a discrimination against the country's own domestic operators, be it Indian Airlines or Jet Airways. There is very little that the private domestic carriers could do since all their other costs are fixed.

My only appeal to the Government is to price ATF at the same level as it is for foreign carriers, if not at par with international rates. Reduction in the ATF cost would help us in reducing fares and correcting the prevailing imbalance in the domestic air fare structure. I assure you that ours will be the first airline to pass on the benefit.

Q: What are your future plans and how do you propose to raise your market share?

A: Everything in our airways is planned meticulously and organised properly. Since the emphasis is on transparency in all our operations, we stick to the plans. This also helps us gain the confidence of our investors and merchant bankers.

Our first business plan was for 1993-1998, which was reviewed and followed up with another for 1998-2003. The focus of the present plan is to acquire new generation aircraft. In addition, we have drawn up the next business plan, up to 2008. Our market share is about 36 per cent and we hope to increase it to 40 per cent in one year.

Q: What is the status of Jet Airways' proposed modern aviation academy in Mumbai?

A: We are in the process of putting up a simulator to train our pilots and will be the first private domestic airline to create such a state-of-the-art training facility. We will also be the first airline to have a simulator training centre in Mumbai for the new generation fleet of aircraft in the whole of Southeast Asia. Further, as part of the aviation academy, we will soon start training our workforce in all the departments. We are negotiating with the IATA and reputed educational institutions to offer MBA courses on the aviation sector.

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