Board of Jet Airways considers fund raising measures and accelerates turnaround strategy

At meeting held on 27 August 2018

The Board of Directors of Jet Airways (India) at its meeting held on 27 August 2018 has considered various cost cutting measures, debt reduction and funding options, including infusion of capital, monetization of assets including the Company's stake in its Loyalty programme. The management has been tasked to take this forward and accomplish it in a time-bound manner.

Given the challenging business environment, Jet Airways has been implementing additional measures to reduce costs and achieve greater efficiencies of operations.

Key decisions of Turnaround strategy
1. Comprehensive cost reduction programme: Will result in an excess of Rs 2,000 crore of cost reduction over the next two years. The cost reduction programme covers various facets of the company's operations including Maintenance costs, Selling and Distribution costs, Fuel rate and optimization, Debt and Interest cost reduction and enhancement of Crew and manpower productivity.
2. Induction of fuel and cost-efficient B737 MAX aircraft: Contributing to the stated 8-10% growth plan.
3. Revenue enhancement programme: Delivering 3-4% growth in RASK through tactical and strategic initiatives around network, pricing, inventory management and sales.
4. Product and service improvements: Provide choice and flexibility to guests in line with global best practices and standards.
5. Leveraging the well-established 8.5m member JetPrivilege programme
6. Balance sheet restructuring: Capital infusion and debt reduction to result in significant reduction in the interest cost.
7. Fleet simplification: Wet lease of excess ATR aircraft and simplification of sub-fleet complexity of B737s to result in further improvements to the bottom line.