JET Airways has announced a three-year turnaround plan to return to profitability through fleet consolidation by selling or leasing surplus aircraft, debt restructuring and expansion of profitable international operations.
Speaking at a news conference yesterday, Naresh Goyal, founder of the airline, said: “Jet Airways’ international operations are already profitable and contribute 45 per cent to total revenue. As part of our three-year turnaround plan we plan to increase this contribution to 63 per cent by 2015.”
Also present was James Hogan, CEO of Etihad Airways, which holds a 24 per cent stake in Jet Airways. "This is not an overnight turnaround plan but a structured rebuilding process. We are committed to return the airline back to profitability," said Hogan, amid rising speculations that Etihad could raise its stake in the Indian carrier.
Focus areas for international operations will include network development to markets such as Europe, China, Australia and South-east Asia.
Domestically, Jet Airways will also reconfigure its fleet and boost connections to India’s smaller cities.
The two airlines today launched a new marketing campaign, Flying India Forward, across all media platforms, and have appointed Cramer Ball as Jet Airways’ new CEO and Subodh Karnik as COO.
Jet Airways has not been solvent since 2007, and reported a loss of US$689 million for the financial year ending March 2014.