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After
being with the airline industry for the past 35 years, Peter
Leuthi, chief operating officer, is all set to take on Jet
Airways with gusto. In conversation with Charmaine Fernz,
he talks about the future strategies to be adopted for the
airline. Excerpts
What are
the business strategies lined up for the coming year?
At the outset, a business plan has to be established for the
airline. This plan would encompass a three-fold strategy -
current business year, medium and long term plans. Regulatory
work with regards to the feasibility of the annual budgets
and streamlining processes would be next. We are contemplating
going international. We are also aware of rules pertinent
to domestic carriers but government policies need to be liberalised
as they stifle the industry of progress. There is tremendous
drive in Jet as a carrier and India has to recognise this
potential. We are also looking at optimising our routes and
fleets.
Are there
expansion plans with regards to fleet or new destinations?
At present, we are analysing all our fleet and gauging their
potential. We are conducting a research on the capability
and connectivity of all the destinations we fly. This is being
done to bring about perfection in our network module.
How does
Jet deal with competition?
Competition is inevitable in the airline industry. However,
we are watchful over our competitors. One also has to realise
that besides the promotional fares and schemes, it is the
market share that needs to be gauged. Jet so far has had a
decent market share. We make sure we have control on our systems
and even though, we have launched promotional campaigns, it
is in careful consideration of the customer and trade. The
tariff schemes need to give the customer a feeling of progression
and that is where our targets lie.
Would a
low cost carrier work in the Indian market? Comment
Indian customers expectation for the standard of service is
very high. To bring in a low cost carrier would need a lot
of consideration and survey of the markets one want to serve.
The proposition sounds difficult at this point of time for
India. In India, there are a number of factors like high fuel
costs, aircraft leasing, expensive engineering parts and a
lot more that do not work in favour of introducing a low cost
carrier. But one need not rule out the possibility.
What are
your views on Jet going international and the proposed ground
handling at the airports? Comment
We did make a presentation to the government for the ground
handling. But we are still awaiting the answer. Jet certainly
has the capacity to provide convenient and better facilities.
This does not disregard the fact that Indian companies are
doing justice to ground handling. But internationally, it
is fact that if a carrier does five per cent of the traffic,
they should conduct the ground handling operations.
On the international scene, Jet has
the capability to serve India in the long run, as India will
play an increasing important role globally. So, eventually
the government should realise this potential and open up.
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