A day after it announced its worst-ever quarterly loss of Rs 998 crore (consolidated figure for Q2 FY14), the top management of India's second-largest airline, Jet Airways, said one-time aircraft maintenance costs and extraneous factors completely outside its control - such as rupee depreciation, increased airport and navigation charges and high aviation jet fuel prices - made their losses mount.
"On the face of it a loss of Rs 891 crore looks big," said Ravishankar G, CFO, Jet Airways in an earnings call with analysts on Thursday. (He did not quote the consolidated loss figure.) But he explained the various factors beyond the airline's control that added up to hurt it badly. He said that Rs 699 crore out of the total loss posted by the airline was due to the factors Jet could not do anything about.
"Jet incurred a loss of Rs 123 crore in the quarter because of the aircraft being on ground, Rs 213 crore as one-time maintenance costs as some of the engines went to the shop (Indian accounting methods do not allow it to be viewed as an investment), Rs 94 crore due to the fuel rates hike, Rs 38 crore due to increased navigation charges and Rs 231 crore due to the devaluation of the Indian rupee against the dollar," Ravishankar said.
The airline said it was hopeful of getting the last regulatory approval needed to consummate its $600 deal with Abu Dhabi-based carrier Etihad from the Competition Commission of India "soon and definitely by the end of this quarter".
Read news in full 24/10/13 Manisha Singhal/Business Today
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