Jet Airways reduced its losses by 26 per cent to Rs.258 crore during the first quarter ended June 30, 2014, from Rs.348 crore in the year-ago period, following control on costs and reduction in its debt.
Jet Group’s combined revenue increased by 13 per cent to Rs.5,040 crore from Rs.4,469 crore. Seat load factor increased by 2.3 per cent and international operations improved 86 per cent and was profitable. Cargo revenue during the quarter increased by 10 per cent, the airline said. During the quarter, the airline renegotiated its maintenance contracts and will save Rs.270 crore. Its debt was reduced by 21 per cent.
Following the improved performances, Jet Airways Chairman Naresh Goyal vowed to bounce back by the year-end and initiate concrete steps to regain Jet Airways’ lost glory. Etihad Airways also reiterated its strong commitment to help Jet Airways to turn profitable in three years and reduce its debt by working with the airline’s banks.
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Jet Airways, on Monday, announced its decision to go in for a single master brand to get rid of confusion in the minds of its customers and will have a uniform full service product but will compete with low fare airlines by working on its cost structure.
By the end of this year, there will be no JetLite and Jet Konnect brands and all the aircraft will have business class and economy class seats.
“The publication of our first quarter results shows we have made demonstrable progress in the implementation of our three-year turnaround strategy to return Jet Airways to profitability. However, there are still challenges in the very competitive market in which we operate. Our next critical step will be re-establishing Jet Airways as a master brand in India,” Mr. Goyal said.
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“Over the next few months, you will see this brand reflected across our entire business. I give you my commitment, that by the end of the year, Jet Airways will have the best domestic full-service product in India. We will always be competitive to ensure our customers get the best value for their money,” he said.
Subject to government approvals, the Jet Airways master brand will cover the whole fleet, including services currently operated by JetLite. The Jet Airways master brand will provide operational flexibility across the airline’s domestic fleet.
Etihad Airways President and CEO James Hogan said that Etihad would stand by Jet Airways to turn around. “We are there to support and we are here to rebuild Jet Airways,” he said.
Speaking on the occasion Mr. Goyal welcomed the new airline Vistara which would be launched by the Tata- Singapore Airlines joint venture.
“It (their entry) will make us strong. I am very happy that they are coming,” Mr. Goyal said.