Airlines Deals

Farnborough International 2006 — Jet Airways has selected Goodrich Corporation (NYSE: GR - News) to supply wheels and brakes for its new fleet of Boeing 777-300ER aircraft. First deliveries of the fleet of 10 firm/10 option Boeing 777-300ER aircraft are expected to begin in March 2007.
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According to Jim Wharton, Vice President, Commercial Aircraft Wheels & Brakes, “We appreciate the confidence Jet Airways has in Goodrich and are pleased to have the opportunity to expand our long standing relationship as we support this important new fleet. Jet Airways identified both our willingness to find flexible solutions and the support that our team has provided to their fleet of Boeing 737NG aircraft as key factors in the selection of our team in this highly competitive market.”

Dato’ K. Jeyakanthan, V.P. Engineering Services at Jet Airways stated, “Goodrich has been working with Jet Airways since the airline’s inception in 1993. Our entire Boeing 737 fleet is fitted with Goodrich wheels and brakes. We are satisfied with both their product performance and support. In view of the cordial working relationship between our two companies, Jet Airways has selected Goodrich wheels and brakes for the newest addition to our fleet, 10 Boeing 777-300ER aircraft.”

In addition to wheels and brakes, Goodrich supplies a wide variety of products and systems as original equipment on the 777-300ER ranging from landing gear to interior lighting.

Goodrich’s Aircraft Wheels & Brakes team has been a world leader in the design, development and manufacturing of commercial, military, regional and business aircraft wheels and brakes for more than 50 years. The business also provides aftermarket service and critical spares to the world’s major airlines. It has created innovative braking systems for over 200 types of aircraft during this half century and has many more technological improvements in development.

Goodrich Corporation, a Fortune 500 company, is a global supplier of systems and services to aerospace, defense and homeland security markets. With one of the most strategically diversified portfolios of products in the industry, Goodrich serves a global customer base with significant worldwide manufacturing and service facilities. For more information visit http://www.goodrich.com.

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Jet Airways signs on an agreement with Swiss International Airlines

Indian private airline operator Jet Airways has announced that they have signed on a reciprocal flyer programme alliance with Swiss International Airlines.

This deal would allow the flyers on these two airline companies to earn and redeem miles.

This is just another one of the many similar deals signed on between Indian and international airline companies operating in the domestic market.

This deal between Jet Airways and Swiss International Airlines would enable the Jet Privilege (frequent flyer programme) members to accrue and redeem JPMiles on all Swiss operated flights.

Jet CEO Wolfgang Prock-Schauer spoke on this new development: “With Switzerland increasingly becoming a favored holiday destination, we are confident that Jet Privilege members will benefit from the synergies created by this partnership”.

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Jet Airways and SWISS (Swiss International Air Lines) have entered into a reciprocal Frequent Flyer Programme alliance which will benefit frequent flyers of both airlines. Effective July 15, 2006, all Jet Privilege members will be able to accrue and redeem JPMiles on all SWISS operated flights. This partnership will also allow members of Miles & More Frequent Flyer programme (managed by Lufthansa), of which SWISS is a fully integrated partner, to earn and burn Miles & More miles on Jet Airways.

The new partnership aims to serve the frequent travelers of both airlines by way of extending the opportunity of earning frequent flyer miles while traveling across the network of both airlines. So while Jet Privilege members can enjoy the convenience and luxury of SWISS’ global connectivity to 69 of their worldwide destinations; Members of Miles & More can also accrue and redeem miles on all Jet Airways flights, availing of better connectivity and excellence in service across Jet Airways’ 48 domestic and international destinations.

As a special launch promotion exclusively for Jet Privilege members, from July 15 - August 15, 2006, all Jet Privilege members on qualifying SWISS flights will earn double JPMiles on the basis of their class of travel on SWISS.

Commenting on the partnership, Mr. Wolfgang Prock-Schauer, Chief Executive Officer, Jet Airways said, “At Jet Airways it has been our constant endeavor to provide our travelers with high value propositions. Our Frequent Flyer Programme partnership with SWISS will allow Jet Privilege members more mileage accrual and redemption opportunities. Moreover, with Switzerland increasingly becoming a favoured holiday destination, we are confident that Jet Privilege members will benefit from the synergies created by this partnership.”

Mr. Marcel Biedermann, Vice President Intercontinental Markets, Swiss International Air Lines said “India is a very strategic and important market for us and we are happy to enter into this frequent flyer partnership with India’s foremost airline. While Jet Privilege members can now avail of SWISS’ worldwide connectivity, our customers will benefit greatly from Jet Airways’ international & domestic network.”

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The Supreme Court on Friday made it clear that an interim order passed by a Lucknow court restraining Jet Airways from demanding and/or receiving Rs. 1,500 crores, deposited in the escrow account in the ICICI Bank and an injunction restraining the bank from releasing the said amount would continue until further orders.

A three-judge Bench comprising Chief Justice Y.K. Sabharwal, Justice C.K. Thakker and Justice R.V. Raveendran passed this order on transfer petitions filed by Jet Airways and others seeking transfer of an arbitration petition filed by Sahara India Commercial Corporation before a District Court in Lucknow to the Bombay High Court.

The petition before the Lucknow court was filed after the Rs. 2,300 crore takeover deal failed. The Bench, however, stayed all further proceedings pending before the Lucknow court and the Bombay High Court. The Bench issued notice to Sahara and others asking them to file counter in two weeks, rejoinder a week thereafter and directing listing of the cases for further hearing after three weeks.

Transfer petition

In the transfer petition Jet said that it had filed an arbitration petition in the Bombay High Court on June 20 and on the same day Sahara filed an application in a Lucknow district court. On June 21, the District Judge passed an interim order restraining Jet from demanding and/or receiving Rs. 1,500 crores, deposited in the escrow account in ICICI Bank and an injunction restraining the bank from releasing the said amount. On June 23, the District Judge passed another interim order restraining Jet from enforcing the pledge agreement.

Jet maintained that it had initiated the first proceedings in Mumbai. Further the Lucknow court did not have any jurisdiction to entertain the matter. Even otherwise as per the agreement the place of arbitration was in Mumbai. They raised the plea of jurisdiction in the Lucknow court but the Judge without deciding the question of jurisdiction had passed the two interim orders.

The petition said the purported exercise of jurisdiction by the District Judge had resulted in serious miscarriage of justice and the petitioner would continue to suffer grave and irreparable harm, loss and prejudice if the case was not transferred to Mumbai. While seeking a transfer of the case to the Bombay High Court, the petitioner sought stay of the operation of the two interim orders passed by the Lucknow District Judge.

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The Supreme Court has stayed all proceedings on separate petitions filed by Jet Airways and Air Sahara against each other in the Mumbai and Lucknow courts following the failed Rs2,300 crore ($500 million) acquisition deal.

A three-judge bench headed by Chief Justice Y K Sabharwal issued notice to Air Sahara on Jet’s petition to transfer all suits filed in a Lucknow court to the Bombay High Court. The apex court directed Air Sahara to file its reply within two weeks and asked Jet Airways to file its reply within another week. The court deferred hearing on the matter for three weeks.

The interim order of the Lucknow district court to freeze the escrow account opened for the acquisition would continue till further orders.

Jet Airways had, in January, agreed to buy Air Sahara for Rs2,300 crore in cash. But, the deal collapsed in June for want of regulatory approvals, including security clearance for Jet chief Naresh Goyal to join Air Sahara’s board.

Air Sahara moved the Lucknow district court seeking to stop Jet from operating the escrow account opened for the purpose, even before expiry of the June 21-midnight deadline for completing the share purchase agreement. Jet, too, filed a petition in the Bombay High Court.

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Indian-owned airline Jet Airways has learned that its planned flights between Newark, Brussels in Belgium, and Mumbai will not be launched until at least the second quarter of 2007.

The proposed flights have run into problems after a Maryland airline, also called Jet Airways, filed an objection with the Department of Transportation (DOT) claiming trademark infringement.

Maryland Jet Airways’ complaint also alleges that the Indian airline’s chairman has ties to terrorist groups, including al-Qaida, and organized crime – a complaint that the DOT appears to be taking seriously.

The application was initially submitted in May 2005 and is still awaiting approval, a timescale that industry analysts agree is unusually long.

However, despite the accusations, the Port Authority of New York and New Jersey is in support of the Mumbai-based carrier’s proposed route addition, saying that another airline would increase competition on routes from the New York area to India and Belgium.

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Jet Airways revises free baggage allowance for students travelling to London from India between July 01, 2006 and September 30, 2006. Students can now avail 46 kgs as total free baggage allowance, against existing 40 kg free baggage allowance. Revised baggage allowance is applicable only up to London on outbound journeys.

Due to sizeable number of students travelling to London from India, Jet Airways has revised free baggage to facilitate students to carry extra baggage.

To avail this free baggage allowance, passengers must present their student visa at the time of check-in. The revised free baggage allowance is offered to students on sale and purchase of tickets between July 01, 2006 and September 30, 2006 (both the days inclusive).

Free baggage allowance can be availed on any Jet Airways published carrier fare and cannot be availed on discounted group fares. Any one piece of baggage should not exceed 32 kgs in total weight. For example - Passenger travelling from Delhi to London Heathrow cannot carry one bag of 46 kgs.

Passengers are requested to visit Jet Airways website www.jetairways.com, contact Jet Airways’ Call Centres or the nearest Jet Airways office for any further details.

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Talk about a delayed flight.

Jet Airways Ltd., which initially planned on starting a daily Newark-Brussels-Bombay (also known as Mumbai) route last year, is now hoping to launch the flights in the second quarter of 2007.

The Indian airline applied to the U.S. Department of Transportation in May 2005 for permission to fly to Newark. But the application has been on the slow track, amid concerns about the airline’s possible links to terrorism.

“We are still waiting for the U.S. DOT approval,” wrote S.K. Datta, executive director of the Indian carrier, in an e-mail to The Record on Tuesday.

Jet Airways initially hoped to launch the daily route last year, around the same time that Continental Airlines and American Airlines launched routes to the Indian city of Delhi after an “open skies” pact between the two countries lifted decades-old restrictions on routes.

But a Maryland company with a nearly identical name, Jet Airways Inc., filed an objection to the Indian airline’s application. The Maryland company complained of trademark infringement and — more seriously — alleged that the Indian company’s chairman had ties to al-Qaida and organized crime.

The Indian airline has maintained that the accusations are untrue, but the U.S. government has apparently taken them seriously. Airways Ltd.’s application is still under review, a spokeswoman for the DOT said Tuesday, declining to comment further.

“This is taking absurdly long,” said Jay Sorenson, an airline consultant in Wisconsin and one of several industry observers who have questioned the credibility of the Maryland company’s CEO, Nancy M. Heckerman, who filed the complaint with the DOT.

Sorenson said the Maryland company is not an operating airline and has no airplanes. “It’s some woman who has bought a mailbox. It appears to be a completely illegitimate claim,” he said.

Attempts to reach Heckerman Tuesday were unsuccessful. The phone number she used on the legal papers produced no ring, and the company has no listed number. An executive for a Jet Airways Inc. based in California said her company has no connection to the Jet Airways Inc. in Maryland.

Meanwhile, the Port Authority of New York and New Jersey continues to support the Bombay carrier’s application to fly out of Newark, saying it will increase competition on routes between the New York-area airports, Brussels and Bombay.

“Our position hasn’t changed,” said Pasquale Difulco, spokesman for the Port Authority.

“We’re just waiting for a decision,” he said.

Currently, travelers leaving Newark can reach Bombay on a dozen airlines in one-stop journeys, with prices ranging from about $1,300 to more than $5,000 round trip. The stops are in cities from London to Frankfurt, Germany, to Delhi.

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Jet Airways announces Tele-Check-in facility from any city on Jet Airways network for its passengers with immediate effect. For example, Jet Airways’ Ahmedabad office can Tele-Check-in for a passenger travelling on the Mumbai - Delhi - Mumbai route. However, the return Tele-Check-in must be for the same day.

This facility can be availed by Club Premier passengers and Jet Privilege (JP) members travelling on the domestic routes. Club Premiere passengers, Platinum and Gold Card JP members can Tele-Check-in 48 hours in advance while Silver and Blue Plus Card JP members can Tele-Check-in 24 hours in advance.

Tele-Check-in can be done upto one hour prior to departure. Club Premiere passengers and Platinum, Gold and Silver JP members need to collect their boarding passes from the airport 30 minutes prior to departure whereas Blue Plus JP members need to collect their boarding passes 45 minutes prior to departure.

Passengers are requested to visit Jet Airways website www.jetairways.com, contact Jet Airways’ Call Centres or the nearest Jet Airways office for any further details.

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Sajiv Dhawan of JV Capital Services is of the view that one can keep a stoploss at Rs 525 in Jet Airways. If it goes up by Rs 50 then book profits.

Dhawan told CNBC-TV18, “I have been negative on the aviation sector. It is a very difficult sector. After this merger had been called off with Sahara, one might see some bottom fishing in Jet Airways but again I don’t see any reason to take those sort of calls. I still won’t buy it based on fundamentals because I just don’t like that sector as a whole.”

He further added, “At Rs 550, one can go ahead for short term trading call and buy it but keep a stoploss at Rs 525 and if one gets Rs 50 on the upside then take the profits but it is purely a speculators call at the moment.”

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