9883 - Jet Airways (P) Ltd.

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Environmental Review Summary

Project Number

9883

Company Name

JET AIRWAYS (INDIA) LIMITED

Date ERS Disclosed

Apr 6, 2001

Country

India

Region

South Asia

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Sep 7, 2000
Signed : Feb 8, 2001
Invested : Feb 14, 2001

Sector

Air Transportation

Industry

Infrastructure

Department

Regional Industry - INF Asia & Pac

Project Description

Jet Airways (India) Ltd. is a leading private domestic airline in India that commenced operations in 1994 and currently provides scheduled services to over 30 cities within the country. Over the next five years Jet Airways plans to substitute some of its existing operating leases with owned aircraft and expand its fleet by buying New Generation Boeing B737s. These will include purchase of ten new B737-800s and lease of four new 737-700s over the five years, while retiring leases on seven older 737’s. On completion, Jet Airways would have thirty-two B737s and five French made ATR-72s suitable for short haul operations in the interior regions of the country.

The proposed acquisition is part of Jet Airways’ strategy to fly a modern, young fleet with low operating and maintenance costs. It will enable Jet Airways to meet the growing air traffic demand in India, strengthen its existing routes by offering more flights at conveniently scheduled times, expand its reach into routes not being serviced currently within the country, and capture additional traffic flows created by its recently introduced ATR-72 feeder flights.

Jet Airways is evaluating all of its support services for potential service, efficiency and cost improvements. Currently the company contracts out a number of services, including engine maintenance, sales, some station operations, and catering. The project includes upgrading in-house maintenance facilities and establishing a technical training school complete with simulator equipment. Jet Airways currently performs routine maintenance in rented hanger space at Mumbai and contracts the remainder. The company plans to expand its maintenance capabilities at a site to be leased from Air India in Delhi. Fueling services will continue to be provided under contract.

Environmental and Social

The sponsor has presented plans to address these issues and demonstrate that the proposed project will comply with applicable governmental and World Bank Group requirements. The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.

- Aircraft Operations Safety:

Jet Airways’ Flight Safety Manual has been reviewed and approved by the Government of India, Civil Aviation Department. The Manual includes Jet Airways’ corporate safety organization, safety procedures for regular operations, and procedures for incidents such as unsafe conditions, bird strikes, accidents, and hijackings. Internal safety audit and training requirements are also detailed. Jet Airways has a good safety record.

The airline has its existing ground school in leased space in Mumbai. As part of the project the company will upgrade its training facilities to include a flight school, a B-737-800 simulator, a B737-400 flight training device, and a cabin mock-up for cabin crew training. Various options for locating and sharing these facilities are currently being investigated. Jet Airways will consult with IFC prior to any land acquisitions.

Quality of service at Jet airways is monitored through inputs such as customer questionnaires, quality audit checks, feedback forms, and analysis of complaint letters. Performance is reviewed for check-in services, reservations, in-flight services, catering, cabin interiors, and cockpit crew announcements, and adjustments are made to training programs as required.

- Aircraft Maintenance and Servicing:

Jet Airways carries out all its maintenance work at third party hangars at the international airports in Mumbai and Delhi, and does not directly operate maintenance facilities. The company performs most airframe maintenance in-house, up to and including C checks, which are annual checks requiring 7 to 10 days. Higher level checks such as D checks, which occur every seven to eight years, are performed offsite. Inventories of spares are maintained at Mumbai and Delhi, and parts and components removed from service are sent to offsite contractors for repair and testing. The company has an active occupational health and safety program for its workers that is controlled by a corporate safety committee with representatives from operations, engineering, aircraft services, security, in-flight services, and medical. The committee meets at a minimum every three months.

- Environmental Protection at Ground Sites:

Maintenance work performed by Jet Airways staff is currently conducted in subleased space at major airports. Work is conducted in accordance with established solid and liquid waste disposal, recycling, and other programs established at each airport. As part of this project Jet Airways plans to develop its own airport-based maintenance facilities in leased space. All facilities will be constructed and operated in accordance with local requirements and World Bank guidelines, and Jet Airways will consult with IFC prior to construction.

- Compliance with Noise and Air Emissions Requirements

Jet Airways confirms that its existing aircraft to be retained and planned aircraft meet current industry guidelines and standards for noise levels and air emissions. The Classic (B737-400s) as well as Next Generation aircraft (B737-700s and 800s) both comply with stage 3 noise limits.

- Cargo Handling Policy:

Jet Airways carries all types of cargo, except for dangerous cargo as specified by the International Air Transport Association (IATA). Such cargoes (e.g., hazardous materials, flammable solids and liquids) require special handling. The company has confirmed that these will not be carried on any Jet Airways flight and has necessary procedures in place to ensure that such goods are not accepted for transportation.

Conclusion & Monitoring

This Environmental Review Summary (ERS) is prepared and distributed in advance of the IFC Board of Directors' consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Any documentation that is attached to this ERS has been prepared by the project sponsor or in conjunction with the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content. The following ERS is disclosed in accordance with IFC's Disclosure of Information Policy that went into effect September 1998.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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