NEW DELHI: Indian airline Jet Airways on Wednesday announced the inking of a new, enhanced cooperation agreement with the global aviation giant Air France-KLM group, which will see it boost its reach across the domestic and international market.
According to Jet Airways’ statement, the new agreement enhances connectivity between 106 European cities and 44 domestic destinations. “This enhanced cooperation agreement between Jet, Air France-KLM Group represents the next stage of our journey of offering better connectivity across our combined global networks,” Jet Airways chairman Naresh Goyal said.
The fine print of the contract primarily effects a deepening of the earlier code-sharing relationship signed in 2017 between the two groups. Jet will see the agreement in tandem with pacts inked between the three networks and Delta Air Lines of the US, boost connectivity between India and Europe as well as between Europe and North America.
As part of the agreement, Jet passengers will be able to book a single ticket for a trip to the US and Europe, and fly Delta, Air France-KLM or Virgin Atlantic. Flights will be “metal neutral”, which means revenue will be shared regardless of whose aircraft is deployed.
Unlike interline or codeshare agreements, a joint venture follows the principle of metal neutrality in which revenue/profit is shared on a pre-determined basis on select routes and it does not matter which airline flies a passenger. The partnership, Goyal said, is expecting an incremental revenue to the tune of $1 billion.
Jet’s relationship with stakeholder Etihad (owns 24 per cent in Jet) will also continue untouched, said Goyal.
“I believe this partnership with AF-KLM will be very good for us. We’ve a great relationship with Etihad, which will continue and will not be disturbed at all,” he said, “We’ve done well with Etihad and will continue to do so. There are 70-80 lakh Indians in the Gulf. Travel demand between India and the West will be both via the Gulf route and Europe, and also direct to Europe.”