Since Etihad took a 24% stake in Jet Airways in November 2013, improvements have been achieved in the areas of network growth, revenue enhancement, and operational and cost rationalization.
The two airlines said they now offer more flights to and from India than any other airline, boasting a 21% share of the country’s international air travel market, and increasing from nine to 15 the number of direct routes between India and Abu Dhabi.
Jet Airways’ chairman Naresh Goyal said: “Our strategic collaboration with Etihad Airways includes network integration, joint sales effort, sharing of resources, collaborated procurement and knowledge transfer. All of these have enabled us to leverage cost advantages and economies of scale to the eventual benefit of our guests, as well as our employees.
The benefits of our alliance with Etihad Airways will continue to emerge, highlighting the significance of this strategic relationship. We will continue to work toward building a stronger base for the future by taking decisions that are in the long term interest of all our shareholders.”
A codeshare partnership between the two airlines means the Jet Airways 9W code is now included on Etihad Airways flights to 33 destinations, with Etihad’s EY code included on 60 predominantly domestic Jet Airways routes. In the first six months of 2015, Etihad transferred more than 235,000 guests onto Jet Airways’ network into India, with Jet Airways transferring 182,000 guests onto the Etihad network.
The airlines have also aligned their schedules between Abu Dhabi and India to improve flight connectivity between their networks.
Etihad president and CEO James Hogan said: “Before our equity deal with Jet Airways, we had 2% of the international traffic out of India. Today, with Jet Airways, we have 21% of the market, and combined, we are the dominant carriers out of India. Jet Airways is now our number one equity partner for revenue and passenger contribution on Etihad Airways. India is now Abu Dhabi’s number one source market for international visitors.”
He said that as an active investor and a strategic partner, Etihad had “provided fresh capital and financial stability for Jet Airways, assisted global network growth, increased flight connectivity, and delivered efficiencies through activities including joint procurement and resource sharing.”
He acknowledged there are “still many challenges to tackle, but also exciting opportunities ahead. Our partnership strategy has provided value to Jet Airways in excess of $2.5 billion and is delivering lower operating costs and greater efficiency for our two airlines, and contributing strongly to the Indian economy.”
(Anne Paylor - ATWOnline News)