Jet Airways (India) has reported a record net loss of Rs.3,667.80 crore for the year ended March 31, 2014, as compared to a net loss of Rs.485.50 crore in the previous year. During the year, Jet Airways group, on a consolidated basis, posted a net loss of Rs.4,129.70 crore as compared to a net loss of Rs.779.70 crore in the previous year.
For the quarter ended March 31, 2014, the airline has posted a record net loss of Rs.2,153.50 crore as compared to a net loss of Rs.495.50 crore for the same period last year.
Following the disastrous financial performance, Jet Airways on Tuesday approved a three-year business plan to reshape the airline and return it to profitability. The airline’s board, which met here, agreed to a series of critical measures to rebuild the business.
“We need to take stringent measures to ensure our success in this challenging and competitive aviation industry. There can be no short-term solutions. The changes required will take time to implement,” Naresh Goyal, Chairman, Jet Airways said.
As a first step, the board and the management team decided to clean up the balance sheet, which includes writing down overvalued non-cash assets.
Etihad Airways President and Chief Executive Officer James Hogan and the airline’s Chief Financial Officer, James Rigney, attended the board meeting for the first time. Etihad had picked up 24 per cent stake in Jet Airways for Rs.2,057.66 crore and the record losses had wiped out all the financial gains.
Mr. James Hogan said: “We are a long-term strategic investor and committed to supporting Jet Airways as it re-engineers its business to achieve sustainable profitability.”
Now Jet Airways has established a taskforce to implement a major restructuring of the business.Cramer Ball, new CEO
Meanwhile, Jet Airways has announced the appointment of Cramer Ball as the Chief Executive Officer (CEO) of the company. He was CEO of Air Seychelles and led a major restructuring.