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aviation | IST

Jet Airways Q1 results: Key decisions of turnaround strategy

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The airline's board also considered various cost-cutting steps, debt reduction and funding options, including an infusion of capital, monetisation of assets, including the company's stake in its "Loyalty programme" to shore up its financial position.

Airline major Jet Airways on Monday reported a net loss of Rs 1,323 crore for the quarter ended June, hurt by rising fuel prices and a depreciation of the rupee.
The airline had reported a net profit of Rs 53.5 crore in the same period a year ago.
Revenue from operations rose 6.4 percent to Rs 6,010.5 crore for the quarter compared to the same period last year.
The airline's board also considered various cost-cutting steps, debt reduction and funding options, including infusion of capital, monetisation of assets, including the company's stake in its "Loyalty programme" to shore up its financial position.
Here are the seven key decisions of the turnaround strategy:
  1. Comprehensive cost reduction programme:
  2. 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 optimisation, debt and interest cost reduction and enhancement of crew and manpower productivity.
  3. Induction of fuel and cost-efficient B737 MAX aircraft: Contributing to the stated 8-10 percent growth plan.
  4. Revenue enhancement programme: Delivering 3-4 percent growth in RASK  (revenue per seat km) through tactical and strategic initiatives around the network, pricing, inventory management and sales.
  5. Product and service improvements: Provide choice and flexibility to guests in line with global best practices and standards.
  6. Leveraging the well-established 8.5 million member JetPrivilege programme
  7. Balance sheet restructuring: Capital infusion and debt reduction to result in significant reduction in the interest cost.
  8. 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.