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Jet Airways (India) Ltd.

BSE: 532617 Sector: Services
NSE: JETAIRWAYS ISIN Code: INE802G01018
BSE 15:24 | 12 Aug 102.60 -1.40
(-1.35%)
OPEN

102.95

HIGH

104.00

LOW

102.05

NSE 15:09 | 12 Aug 102.70 -1.15
(-1.11%)
OPEN

104.00

HIGH

104.00

LOW

102.40

OPEN 102.95
PREVIOUS CLOSE 104.00
VOLUME 18328
52-Week high 137.60
52-Week low 72.00
P/E
Mkt Cap.(Rs cr) 1,166
Buy Price 102.65
Buy Qty 5.00
Sell Price 103.00
Sell Qty 1418.00
OPEN 102.95
CLOSE 104.00
VOLUME 18328
52-Week high 137.60
52-Week low 72.00
P/E
Mkt Cap.(Rs cr) 1,166
Buy Price 102.65
Buy Qty 5.00
Sell Price 103.00
Sell Qty 1418.00

Jet Airways (India) Ltd. (JETAIRWAYS) - Chairman Speech

Company chairman speech

MY DEAR FELLOW SHAREHOLDERS

On behalf of our Board members my Management team and the entire Jet Airways family Iwould like to share with you our pride and gratitude at having attained your Company'slandmark Silver Anniversary this year coinciding with the occasion of which I amdelighted to present to you the latest Annual Report of your Company.

Our 25th Anniversary in our exciting journey so far is also an occasion torecall milestones achieved and celebrate each and every one of those path-breaking eventsof the past 25 years that have set Jet Airways on the road to success.

It has been our constant endeavour to infuse our Indian ethos of warm hospitality intoevery aspect of our operations and it has been this tireless effort that has set JetAirways apart and enabled us to become and remain the carrier of choice for our guestsglobally.

I would like to take this opportunity to thank each and every one of you for standingby your airline for all these years and enabling us to grow from strength to strength aswe look forward to our journey ahead.

As you know not too long ago we had laid out a three-year roadmap to return yourcompany to profitability. We hit that target a year early and followed it up with anotherprofitable year in FY 2016-17.

In fiscal 2018 although our overall revenue increased from Rs.24175 Crores in FY 17to Rs.25177 Crores in FY 18 your company reported a consolidated loss of Rs.636.45Crores due to increase in costs beyond our control which has impacted our results.

Key external factors that slowed down our momentum were weakening of the Indian rupeearound 16% increase in Brent rates with consequent rise in fuel costs industry'sinability to pass on increased costs to the consumer and no corresponding increase inticket fares. In addition there was a considerable increase in Maintenance Landing &Navigation costs during the year.

Operationally we took every step possible to maintain a sharp focus on costs and workedto reduce our net debt. Our non-fuel Cost per Available Seat-Kilometer (CASK) fell by1.8%. Fleet utilisation went up. Our Boeing 737s especially logged 13.52 hours in serviceevery day. This ranks among the highest utilisation rates for any 737 aircraft fleet inthe world.

Our available seat kilometres (ASKMs) which is a measure of a flight's passengercarrying capacity increased by 8.9% to 58228 million in FY 18 compared with 53476million in FY 17 which led to a rise in passenger numbers from 27.15 million in FY 17 to29.95 million in FY 18. Load factors too grew by 2.3% points to 83.6%.

We have completed 12 successful months of operations from our new Gateway at Amsterdam.Amsterdam has witnessed strong growth within a year of its operation enabling us to deployB777-300ER services on the route between India and

Amsterdam offering first class service as well as facilitating record cargo uplift.

To gain out of our partnership with Air France KLM Delta we have launched two newservices into Europe Bangalore-Amsterdam & Chennai–Paris. Most crucially thoughthis agreement complements Air France-KLM and Delta Air Lines' transatlantic partnershipbetween Europe and North America. This allows us to offer guests multiple options andseamless access to 106 destinations in Europe and over 200 in North America alone. Yourairline also expanded codeshare with Virgin

Atlantic to 9 points in the US via London Heathrow and with Delta 30 additionaldomestic US codeshare destinations were added.

We have also introduced a third daily frequency to London from Mumbai. Introduction of4 weekly non-stop flights between Mumbai-Manchester in the near future is also on theanvil. With this addition of our 5th non-stop service to/from the UK

Jet Airways will also become the largest non-stop carrier between Mumbai and the UK.

During the year as part of our network expansion plan we have increased our capacitybetween our metros and emerging cities such as Indore Jaipur Dehradun SilcharBagdogra Madurai Mangaluru adding 30 new flights a week. We now operate 184 flightsevery week enabling our guests from the emerging cities to connect conveniently with therest of India and with our international network. We have also announced the commencementof operations on three of the four routes your airline has been awarded as part of theGovernment's landmark ‘UDAN' Regional Connectivity Scheme.

On the international side of the business our highly successful and renownedJet-Etihad alliance once again carried more passengers on the key Indo-Gulf route than anyother airline in the world.

Your airline has also added frequencies between India and Nepal providing guests withgreater choice while doubling its capacity on the sector. New international flights fromBengaluru to Singapore and Colombo were also launched during the year enhancingconnectivity as well as capacity to ASEAN and SAARC regions including deployment of B777from Mumbai to Singapore. Additionally your airline enabled guests to connect to Shanghai& Kunming in China through codeshare with China Eastern Airlines.

Complementing our efforts to deliver exceptional value to our guests your airline hasattempted to redefine its classic in-flight duty free offering ‘Jet Boutique' bytaking it online and introducing a unique pre-order facility. We were also the firstIndian airline to forge an industry-first partnership with Airbnb - the world's leadingcommunity-driven hospitality company.

Through our partnership we can now offer our guests a wide spectrum of rapidlygrowing global hospitality choices from India thereby establishing a deeper connect withthe new-age Indian traveller.

Also in line with our Guest First philosophy we continue to work towards enhancingcustomer satisfaction through continued focus on OTP on which we continue to lay greatemphasis and importance and accord highest priority to safety.

We have always taken pride on being at the forefront of technological innovation. Tothat end we have placed an order for cutting-edge super-efficient Boeing 737 MAXaircraft which will not only replace older aircraft but also expand the size of yourcompany's fleet. The new aircraft will further drive cost and operational efficiencieswhile offering guests an enhanced travel experience allowing your Company to take greatstrides down the path laid out in our turnaround plan.

"Jet Screen" our pioneering wireless streaming service now covers 80% ofyour airlines' Boeing 737 fleet which provides our guests with 300+ hours ofentertainment through this system ranging from Hollywood Bollywood and Regional movies invarious genres. Meanwhile initiatives like #JetAdvance Fare Choices Baggage Drop theunique Global Pass Seat Select Priority Advantage Fare Lock and the recently launchedJetUpgrade are initiatives that offer both convenience and add an additional stream ofancillary revenue for your Company.

Our award-winning JetPrivilege loyalty program continues to grow. Last year wesurpassed the landmark 5 million-member milestone. This year membership grew 30% to 8million as we added new digital platforms and introduced new benefits for our valued JetPrivilege members by welcoming 2 airline partners and 41 non-airline partners into theprogramme. Little wonder then that Jet Privilege has also won as many as 9 awards acrossdifferent categories at "Customer Loyalty Awards and Customer Experience Awards"These awards are part of "The Customer Fest Show 2018."

For the second consecutive year your airline was the official Airline Travel Sponsorfor one of India's leading sports events - the Tata Mumbai Marathon 2018 which sawattendance swell to over 40000 runners from across the country including 162 membersfrom our Jet Airways family. Your airline was also the official Airline Partner of theAirtel Delhi Half Marathon 2017 At Jet Airways we take our commitment to society veryseriously. We continue to work with several NGOs in an effort to drive positive societalchange and do our part to support community initiatives related to education and thedevelopment of children and women. Our ‘Magic Box' in-flight donation programme inassociation with Save the Children turned 21 this past year. The popular ‘Flight ofFantasy' initiative supported by various NGOs celebrated its 20th anniversary.For yet another year the programme gave over 100 underprivileged children who have neverflown before the thrill and the joy of their first-ever flight.

Despite the headwinds posed by the high Brent crude prices and the longer termchallenges of escalating airport levies surcharges and taxation I am quite optimisticabout the prospect of aviation in India.

The outlook remains bright. More and more Indians are taking to the skies each year. Infact IATA has predicted that by 2025 India will overtake the UK as the world's thirdlargest aviation market behind only China and the USA.

With unparalleled 25 years' worth of experience navigating the aviation space yourCompany has become adept at turning challenges into opportunities: opportunities toinnovate to push boundaries to reflect on what we do well continuously and then improveupon it. Your Company is absolutely focused on executing many key initiatives that willallow us to build a healthy and sustainable enterprise.

Before I end I must express my sincere thanks to the various ministries of theGovernment of India including the Ministry of Civil Aviation Ministry of Finance andMinistry of Commerce & Industry and also the Director General of Civil Aviation theBureau of Civil Aviation Security the Airports Authority of India Delhi InternationalAirport Limited Mumbai International Airport Limited GMR Hyderabad International AirportLimited Bangalore International Airport Limited and Cochin International Airport Limited& other airports companies for their continued support.

I would also like to express my gratefulness to all lenders aircraft and enginelessors the US EXIM Bank the European ECAs various national and international banksfuel supplies spare parts suppliers who have been there to support us in difficulttimes.

My sincere thanks also go out warmly to the Boeing Company Airbus Industries ATRGeneral Electric Rolls Royce and Pratt & Whitney for their contribution andpartnership through these past 25 years.

The vote of thanks would be incomplete if I do not thank our esteemed Board Members whohave continued to provide us with their guidance and strategic advice.

It would be remiss of me not to convey my deep appreciation and thanks to all ourShareholders for their unstinted support and encouragement. I look forward to working withyou to ensure that your airline retains pride of place amongst the top internationalairlines of the world.

My immense gratitude to our staff and each and every member of our Management team forall their efforts to sustain your Company's recognised gold standard in serviceexcellence on ground and in the air and the support they have consistently extended tothe Company with their diligence dedication hard work and loyalty.

And finally special thanks to our valued guests who have supported us at every step ofthe way. Thank you for believing in us as we continue to strive to bring you the highestlevel of service excellence in the skies and on the ground.

With kind regards

Naresh Goyal Chairman

.