Jet Airways re-planning U.S. strategy after FAA downgrade

Jet AirwaysJet Airways said it was in the process of re-planning its strategy for the U. S. market in wake of the recent downgrade of India's aviation sector by the United States' Federal Aviation Administration (FAA).

The U. S. FAA recently downgraded its safety rating for Indian aviation sector from Category 1 to Category 2. The move barred Indian carriers from making an increase in number of flights to the U. S. Jet Airways and state-run Air India are the only two Indian carriers that operate flights to the U. S.

Raj Sivakumar, senior vice-president (alliances & planning) at Jet Airways, admitted in an earnings call that the carrier would not be allowed to increase its flights to the U. S., but he added that the downgrade would not have do not have any impact on the carrier's revenues.

Speaking on the topic, "We do not expect any reduction in revenue due to the downgrade. Our operations in the US will continue as they are. However, we are in the process of replanning our strategies for the US market."

In the December quarter, seat factor to the U. S. accounted for 83 per cent of Jet Airways' various international operations. Late last year, the airline sold off its two wide-body Airbus A330. In addition, it is pursuing talks for leasing the rest three aircraft, which would help its save $17 million.

The Indian carrier has plans to add nine narrow-body aircrafts within the next financial year, most of which would be utilized for international operations. Over the past couple of years, Jet's revenue from global operations increased from 55 per cent to 58 per cent of its total revenue.

Advancing with its network expansion plan, Jet also announced that it would launch Mumbai-Paris services by May this year.