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Wednesday, December 22, 2010

Jet Airways seeks rail service deals in Europe to expand its presence

In a first for any Indian carrier, Jet Airways (India) Ltd plans to strike deals with European railway operators to let passengers reach destinations its air network doesn't cover.
Foreign airlines such as Lufthansa, Air France SA, Emirates and Continental Airlines Inc. already have such arrangements with railway firms, allowing passengers to carry on with their journey by train after a flight, or vice versa, on a single ticket. The concept is particularly popular in Europe.
Jet Airways has sought the civil aviation ministry's approval to sign such agreements before it approaches European governments for similar clearances, said a government official, requesting anonymity.
“It's a first, so no one really knows how they will run it”, the official said. The approval is yet to be given.
A senior Jet Airways executive confirmed the airline was looking “at that option,“ but declined to give details.
An analyst said the move will benefit the airline.
“It helps expand the airline's network into suburban and outlying towns that are not served by air, and is sold as an add-on to the flight”, said Vikram Krishnan, associate partner with New York-based consulting firm Oliver Wyman Group. Krishnan said Continental Airlines in the US has a similar tie-up with the rail ser- vice Amtrak to take passengers from its Newark hub to cities such as Philadelphia.
“I don't think the airline and train company try to actively align schedules but the trains often run at enough frequency that these connections occur without much effort on either end,“ he said, Naresh Goyal led Jet Airways serves 24 foreign cities through its European hub in Brussels. This month, it has started daily non-stop flights from Delhi to Milan, Italy.
The airline has also requested the aviation ministry for permission to fly to more European cities ahead of expanding its fleet of 112 aircraft next summer, Mint reported on 22 October.
Four long-haul Boeing 777 aircraft leased to Turkish Air- lines during the downturn of 2008-09 are expected return to Jet Airways between July and October 2011.
Paris is one of the cities the carrier plans to start flights to from next year. The government official mentioned above said Jet Airways may also link to Paris from Brussels through the planned agreements with regional railway firms.
This would mean passengers who book a Chennai-Brussels- Paris ticket would fly to Brussels from Chennai and then take a 100-minute train to the French capital. Air France al- ready links Brussels and Paris through the French national railways SNCF.
Lufthansa's tie-up with Ger- man railways Deutsche Bahn AG allows its passengers to go by train to any airport inside Germany. Dubai-based Emirtes, too, has an arrangement with Deutsche Bahn that lets its passengers at Munich, Düsseldorf, Hamburg and Frankfurt travel further by rail inside Germany, with a free transfer between airports and train stations.