Jet Airways devises new plan to turn profitable

Jet Airways Wednesday said it has initiated a new plan to focus on the domestic sector to turn its financial position around in the next three years.

"Our international operations are already profitable and contribute 45 percent to our total revenue. We will continue to build on this strong foundation as part of our three-year turnaround plan and increase the contribution to 63 percent by 2015," said Naresh Goyal, chairman, Jet Airways, at a news event here.

"At the same time, we will address challenges in the domestic market with a model that removes complexity in our fleet, product and brand. This is not a short-term strategy, but we are optimistic about the future and confident about achieving the intended results."

According to the airline, it will consolidate its financial position by various means like hiving off access capacity in terms of aircraft and debt restructuring.

Jet Airways had earlier reported a net loss of Rs.2,153.57 crore for the quarter ended March 31, 2014, due to high fuel and interest costs. The company had reported a net loss of Rs.495.53 crore for the corresponding period of last fiscal.

The company said that it was hopeful that the new government will initiate further reforms in the sector and help reduce tax burden on the airlines.

The airline also introduced its new chief executive Cramer Ball and Subodh Karnik as as chief operating officer, pending regulatory approvals.

Ball will come in the place of Ravishankar Gopalakrishnan, who was the acting CEO and chief financial officer till May 2.