Lowering operational costs to stay alive

India’s Jet Airway has announced its plans to cut operational expenses to help keep the companies bottom line out of the red. The plan includes lowering its administrative costs as well as increasing its efficiency from its current work force. In addition to cutting costs, the company which is India’s largest private airline is hoping to increase its online bookings up to twenty five percent of its share within the next two years. The company is also looking at other costs such as adding a hanger to be able to support maintaince of their planes as well as taking a hard look at their need for pilot training programs.

Naresh Goyal who is the Chairman for Jet Airways commented that the company is involved currently at taking cost cutting measures in the areas of administrative roles. In addition, he commented, “We are looking into a pilot training school and a final decision will be taken soon.” As a major airline in the private market, Jet Airway controls roughly twenty five percent of the Indian airline market and analysts expect the company to receive even greater growth as the domestic economy is continuing to grow. In 2007 alone, domestic air travel had increased thirty percent and is setting the trend to increase twenty percent over the next five years. In fact, 60% of the company’s total revenue is from domestic flights.

The company Jet airway has routes to more than fifty domestic locations as well as popular international destinations.