Jet and the Star Alliance. Will they / Won't they?
Aug 19, 2013, 7:43 pm
#226
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Aug 20, 2013, 1:58 am
#227
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Aug 21, 2013, 2:44 am
#228
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EY also has stake in Air Berlin and they have let Air Berlin stay with OW... i think they are taking pragmatic approach by letting each of their investments dictate whats best for them as long as its not competitive for EY..
Aug 21, 2013, 2:53 am
#229
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True. Still does not change the fact that Jet don't see any benefits in a Alliance. Look at their airline partners right now. Why would they need a alliance when they all ready have the best of the three alliances giving them business.
Aug 21, 2013, 4:07 am
#230
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Ajit Singh raised the issue of OS & LX being 100% owned by LH again...
So that must mean they talking about *A stuff at the DGCA.
So that must mean they talking about *A stuff at the DGCA.
Aug 21, 2013, 5:16 am
#231
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Talking about Star Alliance has never really ended at DGCA.
I am not sure how much better success they had from not being in one of the big 3 global airline alliances. 9W had gotten pretty desperate for outside infusions of equity and liquidity resources despite being involved in some ways with a bunch of the big players across all the three major global airline alliances.
As one executive elsewhere said: "not a complete slut, so compensated so".
As one executive elsewhere said: "not a complete slut, so compensated so".
Aug 21, 2013, 5:25 am
#232
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Talking about Star Alliance has never really ended at DGCA.
I am not sure how much better success they had from not being in one of the big 3 global airline alliances. 9W had gotten pretty desperate for outside infusions of equity and liquidity resources despite being involved in some ways with a bunch of the big players across all the three major global airline alliances.
As one executive elsewhere said: "not a complete slut, so compensated so".
I am not sure how much better success they had from not being in one of the big 3 global airline alliances. 9W had gotten pretty desperate for outside infusions of equity and liquidity resources despite being involved in some ways with a bunch of the big players across all the three major global airline alliances.
As one executive elsewhere said: "not a complete slut, so compensated so".
Aug 21, 2013, 5:42 am
#233
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What is killing any business in India is the high Interest costs. 14% is the average lending rate. Jet must pay Cr's every month in this only. Yes they are desperate for outside investment and looks like they have found it but don't you think if it will get less business if it moves over to one alliance rather then servicing most of the airlines that fly into India.
From what little I see, most of the ticketed PNRs that include 9W flights within India but non-9W flights internationally seem to have relatively cheap booking codes on 9W flights and not be any more expensive than if the 9W flights were booked separately. And when the 9W flights are on a single ticketed PNR with partner airlines, 9W is losing out on some baggage fee revenue. This isn't to say that 9W hasn't chosen the margin-maximizing strategy, just that I don't see how it has.
Aug 21, 2013, 6:14 am
#234
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I'm not sure that Jet's servicing other airlines flying into or out of India is a great strategy for being in business and staying in business, especially when debt-servicing costs are so high. It probably comes down to whether most of that servicing of other airlines is providing it with sufficiently higher margin business than it would get via alliance membership.
From what little I see, most of the ticketed PNRs that include 9W flights within India but non-9W flights internationally seem to have relatively cheap booking codes on 9W flights and not be any more expensive than if the 9W flights were booked separately. And when the 9W flights are on a single ticketed PNR with partner airlines, 9W is losing out on some baggage fee revenue. This isn't to say that 9W hasn't chosen the margin-maximizing strategy, just that I don't see how it has.
From what little I see, most of the ticketed PNRs that include 9W flights within India but non-9W flights internationally seem to have relatively cheap booking codes on 9W flights and not be any more expensive than if the 9W flights were booked separately. And when the 9W flights are on a single ticketed PNR with partner airlines, 9W is losing out on some baggage fee revenue. This isn't to say that 9W hasn't chosen the margin-maximizing strategy, just that I don't see how it has.
Aug 21, 2013, 6:32 am
#235
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Aug 29, 2014, 8:37 am
#237
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For Jet, they have partners with almost every major airline. But do they get any benefit ? Why would a MP or AA or EK member want to go an a Jet operated flight unless it is within India or may be from Middle east. You get no elite qualifying miles and often the actual miles are 50% on most fares. So only very few book on Jet.
It is best for Jet to join an alliance. There may not be immediate benefits, but long term it could turn out to be good, especially now that Vistara is starting up, they need a good marketing strategy to keep flyers from defecting. Star is now out of question, perhaps Oneworld or Sky Team. Between the two Sky Team is virtually non existent in India, OW has a decent presence. Joining Sky Team, they can leverage their presence better than joining OW.
It is best for Jet to join an alliance. There may not be immediate benefits, but long term it could turn out to be good, especially now that Vistara is starting up, they need a good marketing strategy to keep flyers from defecting. Star is now out of question, perhaps Oneworld or Sky Team. Between the two Sky Team is virtually non existent in India, OW has a decent presence. Joining Sky Team, they can leverage their presence better than joining OW.
Aug 29, 2014, 9:44 am
#238
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Jet and the Star Alliance. Will they / Won't they?
If news of jet pilots not being paid is true, I think they would be more worried about getting their house in order rather than courting an alliance. Not everyone can afford the luxury of AI where operations can be a mess however they have the comfort of tax payers to focus on joining an alliance.