 "Reduce loss in 2015, consolidate in 2016, turn profitable in 2017: Jet Airways' revival plan")
New Delhi: Jet Airways, which suffered aloss of Rs 4,130 crore in 2013-14, today said it aims to turnprofitable in the next three years and was planning a majoroverhaul of its fleet and products, months after Gulf carrier
Etihad Airways picked up 24 per cent stake in it.
“We plan to reduce losses in 2015, consolidate in 2016and turn profitable in 2017…. We are already on track as ourinternational business has turned profitable. We now have totake our business forward,” Jet’s CEO designate Cramer Balltold a press conference here. Ball is yet to get necessaryclearances to formally take over his position.
The press conference was the first jointly addressed byJet Chairman Naresh Goyal and Etihad President and CEO JamesHogan after the Abu Dhabi carrier bought 24 per cent stakeworth about Rs 2,060 crore in the Indian airline, marking thefirst FDI by a foreign carrier.
Both Hogan and Goyal focussed on Jet-Etihad partnership,saying it would mark Jet’s progressive expansion to North andSouth Americas, Europe and Africa and lowering of operationalcosts due to combining of their fleet and routes of the twoairlines, among other things.
Terming the Indian aviation market as “fiercelycompetitive”, Ball said the next 12 months would see major
changes being implemented to enhance Jet’s domestic andinternational operations.
Goyal said, “We are in the process of finalising our newproducts, restructuring our financial balance sheet, workingwith banks and making payments to our creditors.”
On whether restructuring of Jet fleet was also on theanvil and would its ATR turboprop fleet be transferred to its
low-cost subsidiary JetLite, he said, “We are looking at it.We may sell our surplus aircraft or return them to lessors. Wefinding out what is the most economical way to go forward. Wewill be announcing all this soon.”
Asked whether Etihad would consider increasing its equitystake in Jet from the current 24 per cent, Hogan said, “Wehave just completed the process (acquiring equity). We aredelighted with our investment….We have stepped in as apartner.”
PTI