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Monday, August 23, 1999

Jet disapproves fare war, but keeps options open 

Amitabha Roychowdhury  
Pune, Aug 22: Jet Airways on Sunday opposed the ongoing fare war in the aviation industry saying it was hurting the economics of operations, but kept its options open to remain competitive.

The major private carrier has already announced its intentions not to match the Indian Airlines' decision to introduce special promotional fares from Mumbai to Ahmedabad, Calicut, Mangalore, Kochi and Vadodara sectors at 25 per cent discount till September 18.

``We have no intentions as of now,'' to spread the fare war and the private airline ``will wait and watch'' keeping in mind the passenger load factor, chief executive officer Saroj K Dutta said here.

``We will continue to be pro-active about quality and services where the consumers get the most... We don't want to see it (fare war) continue as it is impacting on us,'' he told reporters in reply to questions.

Stating that Jet's reaction to the fare war has ``always been reactive,'' Dutta said ``economic sense says we should not have discounting in Indianmarket because of high cost of operations.''

However, he said the discounted fares could be offered only if operation costs and breakeven load factor was low enough ``but not in this situation.''Announcing the induction of five new ATR 72-500 aircraft into its 25-plane fleet for the new domestic feeder network, Dutta said while the first two aircraft would be delivered by the French producer, Avions de Transport Regional, next month, the airline would start regional services by October 15.

The third aircraft will start operations by mid-November while the remaining two would be delivered in March and April next year, Dutta said, denying reports about delay in delivery of the ATRs.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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