Jet Airways, which racked up losses of Rs. 4,130 crores in the previous fiscal, on Wednesday outlined plans to become profitable in the next three years. The India-based airline expressed optimism on the strength of a 24 per cent stake picked up by the Gulf carrier Etihad Airways.
The timeline outlined at the first joint conference addressed by Jet chairman Naresh Goyal and Etihad president and CEO James Hogan envisages paring losses in 2015, consolidating the next year and turning the corner in 2017.
“We are already on track as our international business has turned profitable. We now have to take our business forward,” said the Jet CEO-designate Cramer Ball at a news conference in New Delhi.
Mr. Ball will remain CEO-designate as being a foreign citizen as he is yet to get statutory Government clearances. In addition, Jet announced the appointment of Subodh Karnik as Chief Operating Officer-designate.
“We are in the process of finalising new products, restructuring the balance sheet, working with banks and making payments to creditors,” said Mr. Goel, indicating a tough and long haul ahead. The 24 per cent equity will fetch over Rs. 2,000 crores for Jet.
Mr. Ball projected a rise in destinations for Jet from the current 312 destinations to 1,200 by 2018.
In addition, Jet hopes to gain from Etihad picking up equity in at least half a dozen airlines such as Virgin Australia, Airberlin, Air Seychelles, Aer Lingus and Air Serbia. Talks are also on with Alitalia.
Combined this would mean leveraging the advantage of a combines fleet of over 700 aircraft which reach destinations in most parts of the globe. “If we complete our talks with Alitalia, we will be the fifth largest airline group in the world,” said Mr. Hogan.
In the immediate future, the partnership will help Jet launch flights to Vietnam, Malaysia, Myanmar and Seychelles.
The announcement of the turnaround plan led to a rise in stock price by three per cent.
