Jet Airways chairman Naresh Goyal says will restructure debt, talking to bankers

Jul 23 2014, 14:39 IST
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The airline, which has not reported an annual profit since 2007, set out a three-year restructuring plan in May centred on cutting costs and boosting efficiency. The airline, which has not reported an annual profit since 2007, set out a three-year restructuring plan in May centred on cutting costs and boosting efficiency.
SummaryJet Airways' Naresh Goyal said country's No. 2 airline by market share will look at selling planes...

Jet Airways' Chairman Naresh Goyal said the country's No. 2 airline by market share will look at selling planes and restructuring its debts as it tries to find ways to end the losses that have plagued it for years.

"Jet Airways is looking at a lot of consolidation (of our fleet)," Naresh Goyal said at a press event in India's capital on Wednesday.

Naresh Goyal said the carrier is talking to its bankers without giving details of the discussions.

Like all but one of India's major airlines, Jet is losing money fast, beset by high costs, low fares and cut-throat competition in its domestic market.

The airline, which has not reported an annual profit since 2007, set out a three-year restructuring plan in May centred on cutting costs and boosting efficiency. As the carrier struggles to turn around its fortunes, it also named Cramer Ball as its fourth chief executive within the space of a year, pending regulatory approvals.

FULL REPORT: JET AIRWAYS AND ETIHAD AIRWAYS REINFORCE COMMITMENT TO GROWTH OF INDIA’S AVIATION INDUSTRY AND ECONOMY

Jet Airways, India’s premier international airline, and Etihad Airways, the national airline of the United Arab Emirates, have outlined plans to reinforce their long-term commitment to the growth of India’s economy and aviation industry, including a major new turnaround strategy for Jet Airways to return to profitability in three years.

The two airlines have been codeshare partners since 2008 and their relationship was strengthened in November 2013, after Etihad Airways received approvals to acquire a 24 per cent stake in Jet Airways, marking it the first investment by a foreign carrier in India’s airline industry.

The wide-ranging partnership has numerous advantages for travellers, including enhanced connections across the world through an expanded codeshare agreement, and reciprocal ‘earn and burn’ rights and tier level recognition on the JetPrivilege and Etihad Guest frequent flyer programs.

Jet Airways and Etihad Airways also stand to benefit from cost savings and synergies in areas such as fleet acquisition, maintenance, product development and training, and continue to explore collaborative purchasing opportunities for fuel, spare parts, insurance and technology support.

Supporting the partnership, the Jet Airways Board recently approved a three-year business plan to reshape the airline and secure its long-term future. The plan incorporates a series of critical measures that lay the foundations for a return to profitability, such as long-term network, fleet and product developments to optimise the airline’s domestic and international operations.

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