Jet Airways 2.0 likely to take off by next quarter: CEO Sanjiv Kapoor

New Delhi: Jet Airways 2.0, under new developers, hopes to start operations by the July-September quarter, the airline’s chief executive, Sanjiv Kapoor, has said. mint Friday. The airline also hopes to operate test flights by the end of April, using a leased Boeing 737, Kapoor said, adding that he hoped to obtain AOC (air operator certificate) revalidation in early May. . Edited excerpts from the interview.

What is your fleet plan?

Our fleet at least for the first year will be leased. But, there are enough planes available from lessors, whether new or older. There are many planes we can consider. We will decide what works best for us given our needs and cost advantages. I don’t want to give a specific number, but we know it’s important to get to scale quickly because it’s a very scale-driven business. Of course, when we place an aircraft order, it will be for modern, fuel-efficient aircraft.

Are you considering a single fleet or a mixed fleet?

We start with domestic operations. It is therefore safe to assume that we will start with a single fleet (planes).

Your tweets indicate that Jet Airways 2.0 will have a hybrid model. Can you elaborate?

There seems to be a lot of misunderstanding about the hybrid model. That doesn’t mean it will be without frills. By hybrid, we mean a model that is not a traditional FSC model, which has lost its usefulness. Virtually all FSCs use a hybrid model. We intend to have a product that meets current customer needs and also reflects changing customer preferences. The simple fact of having bought on board, or no meal is not the only definition of the hybrid.

Has Jet Airways 2.0 solved slot issues at Mumbai and Delhi airports?

I did not participate in the NCLT process. But, my assumption and hope is that we will get a fair set of slots as we grow.

Is it the right time for a new airline to enter the market?

The flippant answer is that the timing of an airline’s entry is like buying stock. For every buyer of stocks, there are sellers and people making opposite bets. But, more seriously, if investors, anyone entering a market, are able to enter at a low level, they can rise in time to reach the high level. Markets and businesses seem to be cyclical for a variety of reasons. We hope that our timing will work in our favour.

How do you plan to keep your costs under control, which Jet Airways couldn’t do before being grounded in 2019?

Although fuel costs are beyond our control, other costs that can really determine competitive advantage or failure are the costs of the large contracts we will enter into. These are not just aircraft maintenance and engine maintenance contracts, but also other contracts such as IT, ground handling, contracts with external service providers, call center contracts, distribution, etc. Each of these costs must be controlled.

What about developer funding?

We have significant funding from new promoters. There is a liability of $60 million (as part of the NCLT process) passed on to new promoters, which has been accounted for. Our promoters have committed $180 million in seed funding. Of this amount, $120 million will fund the airline, which is actually quite a large sum. And that doesn’t include SLB (proceeds from the sale and leaseback of aircraft). We will have access to SLB’s cash flow over a period of time in addition to developer funding. We also have assets from the former Jet Airways which can be sold to generate funds.

What are your plans with former Jet Airways planes?

Much of the remaining fleet is made up of jumbo jets, which we won’t be using anytime soon as we restart as a national airline. There are a few narrow bodies left, which are old. It is therefore unlikely that we will use them.

What are your international projects?

Regulations require us to fly 20 aircraft on domestic routes before applying for international flights. So when we reach 20 planes, we plan to apply for international flights.

Are you preparing for a price war when you enter the market?

Price is a factor of demand and supply. We have plans and ideas that will allow us to differentiate ourselves from the competition and hopefully carry passengers.

To subscribe to Mint Bulletins

* Enter a valid email

* Thank you for subscribing to our newsletter.

Download the app to get 14 days of unlimited access to Mint Premium absolutely free!

Comments are closed.