Jet re-working profitability plan

Private carrier Jet Airways is re-working a comprehensive profitability plan sought by its foreign partner, Etihad Airways, which completed a 24 per cent stake purchase in the Naresh Goyal-led carrier recently. The development comes on the heels of the market regulator Securities and Exchange Board of India (Sebi) exempting the UAE carrier from making an open offer to the public shareholders of Jet. Had Sebi insisted on making an open offer, Etihad would have automatically become the controlling partner of Jet with 50 per cent stake, which would have been one per cent more than what the sectoral FDI norms permit. Reportedly, Etihad skirted the open offer scare following which both partners reworked some of their joint venture terms.

"Etihad had sought a comprehensive plan from Jet on how it plans to achieve profitability during a recent meeting held in Abu Dhabi. The plan was almost ready. However, after the Sebi's ruling this plan is being reworked now," Jet Airways sources told PTI.

Attempts to reach Jet spokesperson did not yield any response. As part of the profitability drive "some flights from the non-metro routes are being taken off to add more aircraft in the international operations," sources said.

The airline has also pruned the budget across departments, besides the airline has already handed over pink slips to some of its employees in Delhi, they said.

"Travel plans of most of the executives have also been cut and they have been told to undertake only when it is unavoidable," said a source.