Private domestic carrier Jet Airways, which has already declared its intentions to fly on international routes, is aiming at a profit of $60 million in the next two years.
"Our immediate agenda is to achieve a profitability of around $60 million. In the first year, we intend to increase our profitability and then expand into international sector if the government allows us to do so," Jet's newly appointed CEO Wolfgang Prock-Schauer said in New Delhi on Tuesday.
Taking a cue from his chief Naresh Goyal's announcement that the airline favoured flying to foreign destinations if the government permits, he said that while only 30 per cent of the bilateral air traffic rights was utilised by Indian Airlines and Air-India, there was room for three to four airlines sharing the remaining bilateral rights.
"We want to operate on international routes not in a confrontationist manner, but to complement each other," Prock-Schauer said.
He was accompanied by the airline's chief operating officer Peter Luethi.
Asked whether Jet Airways wanted to sell its stake to public and issue initial public offers, the CEO said the carrier would first aim to attain profitability by coming out of the adverse impact of 9/11.
"We should be prepared for it and whenever the situation is ready in India, the policies are in place, we would go ahead."
Prock-Schauer, a former chairman of the global 'Star Alliance' of premier international airlines, said Jet Airways, which had already established links with top carriers like KLM-Northwest, British Airways and Lufthansa, would like to firm up such bilateral alliances with other carriers too, especially those in South-East Asia.
"We are very much looking forward to intensifying our cooperation with Thai Airways in which we can have through check-ins, joint frequent flyer programmes, sell each other's product from one network to another and cooperate on the technical side," the Jet CEO said.
Replying to questions, he ruled out participating in the on-going process of airport privatization, saying: "We intend to concentrate on our core business of being a domestic airline."
"But this doesn't mean we don't need a good terminal which is compatible with the services we provide on board and the attitude of the airport owner towards the airlines should not be that of a landlord."
He said the airline had leased two of its Boeing 737-400s to a Japanese firm.
"We are in the process of renegotiating out contracts tougher with our vendors -- aircraft manufacturers, to leasing firms and hotels. We have to take advantage of the situation in the aircraft market as the lease rentals are down by almost 50 per cent after the 9/11 shock," Prock-Schauer said, adding that the airline was planning to outsource some airport activities like those on the ramp-side.
On Jet Airways' fleet expansion plans, COO Peter Luethi said that while there was no plan to expand fleet-size for now, "we will place a new fleet strategy before our board for approval."
He said the induction of Brazilian Embraer aircraft was 'on hold' till a study, to optimise revenue per flight to fill up about 37 per cent of the vacant seats through apex fares, was concluded.
However, there would be no dilution in the business class product. The airline was also reviewing the fare structure to enable upgrades for economy passengers after paying some additional premium.
"While we have noted that there has been no change in seat load factor for the business class, we have to think of changing the seat configuration if required. This is a testing phase," Luethi said.
The two top officials of Jet Airways hoped that taxes on aviation turbine fuel would be lowered and the route dispersal guidelines of the government reviewed.
The two officials, who met Civil Aviation Minister Rajiv Pratap Rudy in New Delhi, were also optimistic about the new civil aviation policy which is on the anvil.
