Jet, FedEx reportedly in talks on venture
Indian airline Jet Airways is reportedly in talks with FedEx to develop a joint venture cargo airline in India, according to a report Tuesday in Mint.
The report said the deal could either be structured as an outright joint venture or as an operational alliance. Jet, India’s largest private airline, was in talks up until 2009 with Lufthansa to develop a cargo entity, but those fell through when the global economy collapsed, taking India’s aviation sector with it. Neither Jet nor FedEx would comment on the issue, the newspaper reported.
Last week, Jet rival Kingfisher launched its own express cargo service, Kingfisher Xpress, at an air cargo conference in Mumbai. Other domestic airlines, including low-cost carriers Go Air and SpiceJet are either operating or plan to ramp up cargo operations.
India’s GDP is now forecast to rise more than 7 percent in 2010, buoying an aviation industry that saw huge losses in 2008 and 2009. Of late, Jet and domestic airlines have started recording quarterly profits, based largely on increased passenger revenue.