One of the cornerstones of Jet Airways’ JetPrivilege revamp was the abolition of Fuel Surcharges. This change was supposed to come into effect from September 1, 2014. Fuel Surcharges are usually similar for all classes in a flight, and hence I’ve always recommended premium cabin flights because for double miles and similar fuel surcharges where applicable, you get much higher comfort.

However, it seems Jet Airways is either not doing this right yet, or they still intend to charge Fuel Surcharge for premium cabins. Have a look at this.

For instance, on BOM-LHR First Class, the number of miles required is now an astounding 127,500 for a one-way flight from the earlier 81,000 for the same segment. However, there is still INR 15,715 being applied as fuel surcharge.

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This is in contrast to the economy ticket, which is now 47,500 JPMiles as contrast to 27000 JPMiles earlier. And no Fuel Surcharges. Only applicable taxes.

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And this is similar for a lot of sectors, in premium cabins, for instance BOM-BRU next year

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And BOM-EWR

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And DEL-SIN

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And the list goes on and on… In each of these cases, there is no YQ in case of economy flights, but YQ is charged in case of Business Class and First Class flights.

What I can’t wrap my head around is the fact that it is a week into the new redemption structure, and these things should at best take a day if JP wanted to fix it. So, is this a mistake, or is this deliberately left in there??? After all, when they made this mistake the first time, they fixed it the same day.

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Posted by Ajay Awtaney | 3 Comments

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Whenever an airline makes it very easy to earn miles, they also come to a point where they devalue them, and call them adjustments. However, in the case of Jet Airways, they released the new redemption rules by mistake last week, and my determination was that the airline is slashing miles required on many a domestic routes but redemptions on international routes are going to be hit very hard.

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Today, they officially released the new redemption chart, and have given us a month to utilise the old redemption chart before they go through with the new rates for redemption. Take note, this announcement is only for Jet Airways and Jet Konnect flights on various routes. There is no mention on the requirements for partner flights.

Minimum miles for a redemption: JetPrivilege has raised the bar on redemptions. While earlier the minimum redemption requirement was a minimum of 4000 JPMiles, now the minimum miles required for a redemption are 5000 JPMiles.

Fuel Surcharges are eliminated: Jet Airways has adjusted the number of miles required on nearly all routes and knocked off fuel surcharges from the ticket prices. Henceforth, you only need to pay the statutory charges to redeem your ticket such as airport taxes.

Domestic Redemptions are getting much better: Like I mentioned in my post the last week, most redemptions for domestic flights are slightly being adjusted. While the 4000 JP Miles minimum flights are all moving to 5000 JP Miles minimum, there are a lot of routes going down in terms of redemption value as well. And that too with fuel surcharges going away. With this, Domestic redemptions become the sweet spot of Jet Airways JetPrivilege programme.

Out of the 244 routes published by Jet Airways in the domestic redemption table, 174 will now cost a lesser number of miles, and 70 will cost more number of miles. The upside is at best 25% more miles, while on the downside, there are routes which now require 50% miles less as well in some cases, such as Bhopal – Chandigarh.

International Redemptions are getting much much expensive: Like I mentioned earlier, travelling on Jet Airways’ own metal, abroad, is going to get very very bad. The fuel surcharges are going away, however, the number of miles required is going up significantly in most cases, including the premium classes.

  • Neighbouring Stations: No trends here. Kolkata-Dhaka, Colombo-Chennai, become 50% more expensive, while Delhi-Kathmandu, Abu Dhabi-Kuwait become 50% cheaper for redemptions.
  • Regional Routes: No adjustment when you fly from Delhi/Mumbai – Dhaka, Mumbai – Colombo/Muscat/Kathmandu/Dhaka/Abu Dhabi.
  • Flights between India – Middle East: Most flights between India and the Middle East are going up by 12-50% in terms of number of miles required.
  • Flights between India – South East Asia: All flights to South East Asia will now require 50% more miles across the board from September 1, 2014.
  • Transatlantic Flights: Flights between Europe and North American on Jet Airways’ network will cost almost double now using JPMiles. For instance, the business class which used to cost 40,000 miles will now be 75000 miles between Brussels and Newark.
  • India – Europe/North America Flights: India to Europe/North America will see an inflation of 57-60% in terms of number of miles required in all classes of service.

Why do I call this gutting the premium cabin charts: When I redeemed miles for an India/USA business class round trip on Jet Airways a few years back, fuel surcharges on a round trip were about INR 25,000. In today’s day and age, they are about INR 39,000.  So, a Jet Airways business class between Mumbai and New York today costs me 188000 miles + 39000 INR Fuel Surcharge + INR 6300 statutory charges. A revenue ticket costs me INR 230,000. Hence, the value of 188000 miles is worth INR 185000, so near about INR 1 in value per JPMile.

From September 1, 2014, Jet Airways wants to charge me 300000 JPMiles for the same round trip in Business Class. Which means, in mileage terms, for the same ticket of INR 230,000 they want to charge me 300000 JPMiles. Hence, the value of a mile reduces from INR 1 to INR 0.75.

Economy cabin redemptions might just work out better: Another example, for economy class this time. A BOM-HKG economy class round-trip ticket costs INR 30000. In the current redemption structure, which is anyways stupid for this kind of route, they wanted us to pay 40000 JP miles + INR 14000 Fuel Surcharge and INR 3076 as Airport taxes. Hence, the value of a JP Mile came down to a lowwwwwwwww INR 0.33.

Under the new structure, they want you to pay 60000 JP Miles + INR 3076. Which means for the same fare, you now get a value of INR 0.45.

For India – Europe, lets say a revenue ticket costs INR 53000 for a roundtrip. In the current redemption structure, with INR 25000 fuel surcharge, you end up paying 54000 JPMiles+25000 INR (YQ)+INR 5000 (airport taxes etc) to get there, bringing the value of a mile to INR 0.42.

Under the new structure, it is going to be 85000 JPMiles for a roundtrip to Europe in economy, so you at least get INR 0.56 of value.

The best part is, I have not even accounted/adjusted for the potential miles you earn on a revenue ticket to come at the valuation for international segments.

Bottomline: Jet Airways clearly wants you to redeem domestically and not on their international flights. If you like the older structure better, you could redeem miles now for your travels upto 331 days out. Else, wait for the new structure to kick in on September 1, 2014.

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Posted by Ajay Awtaney | 4 Comments

Jet Airways is upping the redemption game which they started a few years back, offering a 50% off on mileage redemption tickets across India for this quarter as of today.

For the past two years, Jet Airways offered a 20% off on mileage redemptions, if booked online, something they discontinued in April 2014. Now, for travel between July 7, 2014 to September 30, 2014, they are offering a 50% off for redemptions across their domestic sectors in economy and Premiere class if you choose to make the redemption online.

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The promotion is valid for JP redemption bookings made between July 07, 2014 to July 21, 2014, only if you issue your tickets using the online redemption engine on www.jetairways.com. So, if you issued your tickets before this date, you don’t get the discount, but if you choose to cancel and rebook the tickets, you may get the discount (one can never be 100% sure an award ticket cancelled goes back into award inventory on cancellation). If you choose to cancel and rebook, remember, it would cost you 500 JP miles for the cancellation per passenger.

The inventory looks pretty good with this sale, and I am now seeing BOM-DEL flights for 5250 miles plus taxes/surcharge and BOM-GOI flights at only 2500 miles plus taxes, which is a steal!

(h.t. to Gaurav Agarwal)

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