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Corporate Jul 9, 2012

Jet to focus on non-ticket revenues to boost earnings

Mumbai: With competition making it difficult to hike fares, Naresh Goyal-owned private carrier Jet Airways is looking at increasing revenues from ancillary activities to help it in the face of mounting losses, a senior official said today.

"Currently, ancillary revenue or the non-ticket revenue accounts for only 3 percent of our total revenues. We are aiming to enhance it to a sizeable proportion," Jet Airways vice-president (marketing) Manish Dureja told reporters on the sidelines of an event in Mumbai.

Earning more. Reuters

He said the ancillary revenue business world-over across airlines stands at $33.5 billion but in India, it is almost negligible.

Dureja said currently, Jet Airways receives $3.5 to $4 revenue per passenger from ancillary activities, but if efforts are put in, this may go up to $10 per passenger.

He said the airline has recently taken several steps to boost the non-ticket revenues, such as charging for second baggage, levying of convenience fee, charging for printing tickets at Jet kiosks, increasing on-board meal charges and going for tie-ups with various companies interested in co-branding.

Meanwhile, it tied up with Disney Channel India, as part of which, it unveiled a Disney-themed aircraft wrapped with images of Disney's Mickey Mouse, Minnie Mouse, Donald Duck, Daisy, Goofy and Pluto.

Dureja said the airline is in talks with seven more players from various sectors for similar co-branding opportunities, but declined to name the companies.

Jet Airways had posted a Rs 298 crore loss for the January-March period, its fifth straight quarter of ending in the red.

PTI