Jet aims to improve financials via better aircraft use, cost savings

Jet Airways is aiming to improve its operating results through better aircraft use and cost savings, after its tie-up with Abu Dhabi's Etihad Airways.

The airline is working on debt restructuring. It has reduced its debt from Rs 10,500 crore in March to Rs 9,790 crore.

On an operating level, the airline continues to lose money. It posted Rs 266-crore operating loss on a stand-alone basis. This is 60 per cent lower than a year ago's.

A reason for the reduction in losses is the lease of nine of its wide-body planes to Turkish Airlines and Etihad. The lease income amounted to Rs 246 crore and is treated as other operating income.

Jet's stock rose seven per cent to close at Rs 268.6 on the BSE on Monday.

Subsidiary JetLite posted a loss of Rs 112 crore.

Senior executives of the airline told analysts in a post-result conference call that the airline is expecting efficiencies through joint procurement with Etihad and other partner airlines.

"We will improve our aircraft utilisation and fly on those routes which are most profitable," said the airline's chief executive officer Cramer Ball.

Jet will complete reconfiguration of its Boeing 737 fleet by next January. After that all its aircraft will have 12 business and 156 economy seats. "The reconfiguration will gives us operational flexibility," said the airline vice-president (network planning) Abhijit Das Gupta.

The airline did not give out specific details on proposed new routes via Abu Dhabi but executives said foreign earnings now contribute over 60 per cent of all revenue.