It has also purchased new aircrafts that have been designed for greater maneuverability, ensuring lesser fuel consumption. Jet hopes to bring down its distribution costs incurred by ticket sales which eats nearly 7 per cent of their revenues on international routes and 14 per cent into its domestic routes.
Despite these measures however, airlines are continuing to feel the heat. SpiceJet, which expected to break even in FY’09, now says it would be difficult given the surge in fuel prices. “We now expect to break even only in FY’10,” said Basu.