New Delhi: Jet Airways, India's second-biggest carrier, forecast
Wednesday a return to profit in three years through cost-cuts,
route-sharing with new partner Etihad Airways and restructuring of hefty
debt. The publicly traded airline, which has not posted an annual
profit since 2007, has been struggling in an overcrowded market beset by
cut-throat fare wars, high fuel costs and shoddy infrastructure.
"The game plan is in place, it's now about delivery," Jet Airways' new chief executive Cramer Ball told reporters in New Delhi. "It's a three-year plan -- 2015 we will reduce losses, 2016 we will consolidate and 2017 we'll have profitability," he said.
Ball was speaking at the airline's first news conference with Etihad since India cleared in May the fast-growing Abu Dhabi airline's purchase of a 24-per cent stake in the Indian carrier for 21 billion rupees (US$330 million). Jet's shares jumped over five per cent on the turnaround plan before retreating slightly to trade up four per cent at 266.35 rupees.
Ball, an Australian, said Jet was already profitable on international routes which contribute 43 per cent of revenues, a figure he projected would rise to 63 per cent by 2015. All major Indian airlines, except leading carrier IndiGo, have been haemorrhaging money but analysts say the sector has a brighter future longer-term thanks to a fast-growing growing middle class.
Read news in full 23/07/14 Channel News Asia
"The game plan is in place, it's now about delivery," Jet Airways' new chief executive Cramer Ball told reporters in New Delhi. "It's a three-year plan -- 2015 we will reduce losses, 2016 we will consolidate and 2017 we'll have profitability," he said.
Ball was speaking at the airline's first news conference with Etihad since India cleared in May the fast-growing Abu Dhabi airline's purchase of a 24-per cent stake in the Indian carrier for 21 billion rupees (US$330 million). Jet's shares jumped over five per cent on the turnaround plan before retreating slightly to trade up four per cent at 266.35 rupees.
Ball, an Australian, said Jet was already profitable on international routes which contribute 43 per cent of revenues, a figure he projected would rise to 63 per cent by 2015. All major Indian airlines, except leading carrier IndiGo, have been haemorrhaging money but analysts say the sector has a brighter future longer-term thanks to a fast-growing growing middle class.
Read news in full 23/07/14 Channel News Asia
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