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The latest news of the downward spiral of Jet Airways is giving up its landing slots at London Heathrow, one of the world's most coveted airports. Jet Airways experienced operational problems and flight cancellations resulted in a definitive cessation of operations in London.
Jet Airways abandons the slot machines at London Heathrow Airport and will no longer fly to the city. Photo: Jet Airways.
Slots at London Heathrow Airport
London Heathrow Airport is one of the busiest airports in the world. As a result, the airport organizes its traffic by giving airlines the privilege of booking slots from the airport. Many other busy airports operate in the same way, but London Heathrow slots are the most popular.
The slots for the airport can be acquired in two ways. The first is to obtain special permission from the authorities to manage traffic flows in the public interest. Airlines are allocated slots according to the operational efficiency of the airport.
The second way to get a place in London Heathrow is to buy them. Airlines are allowed to purchase slots for takeoff and landing. Slots at the airport cost the airlines tens of millions of dollars, the highest paid being $ 75 million for a single slot.
London is one of the major international hubs to travel to and from Europe, so it is essential to maintain a position at London Heathrow Airport. Jet Airways was fortunate to have a seat at the airport, but problems with the airline changed their flight capabilities.
Jet Airways leaves London
Jet Airways recently announced the stopping of international flights, including to London. While the previous announcement appeared to be a temporary solution to readjust operations, the move seems much more permanent now that they no longer have the right to operate from London Heathrow Airport.
Jet Airways had three niches at London Heathrow Airport. The slot machines originally belonged to Jet Airways, but they were eventually sold to Etihad Airways for $ 70 million under an investment agreement between the airlines. The slots were then rented to Jet Airways. Jet Airways took advantage of this agreement by allowing them to generate the necessary capital.
Jet Airways has now relinquished its position in London, currently operating only in India.
Jet Airways has canceled all international flights and immobilized 90% of its fleet. Photo: Jet Airways.
State of the company
Jet Airways has gone through difficult times and the reduction of airline activities is the only solution if they hope to stay longer. The Bombay-based airline has immobilized 90% of its fleet, including all international flights. Jet Airways' debt has exceeded one billion dollars.
Flights were already booked on Jet Airways for flights to London. Now that the airline no longer serves London Heathrow, pbadengers will have to request that their tickets be re-issued to another airline.
The slots belonging to Jet Airways were transferred to Etihad, the owner who rented the slots to the airline. Etihad currently has four slots at London Heathrow Airport. Additional slots could open potential new flights to London or lease them to another airline.
Jet Airways seems to have permanently transferred its 3 pairs of daily slots to Heathrow to Etihad, which holds a minority stake in the airline. This is taken from the Airport Coordination website: pic.twitter.com/mqLqLCKxxH
– LondonAirTravel (@LondonAirTravel) April 12, 2019
Will Jet Airways finish? And what should Etihad Airways do with the extra slots?
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