Thursday, June 27, 2013

Loss-making domestic ops a challenge for new Jet Airways team

New Delhi: The biggest challenge facing the new management at Jet Airways, including its recently appointed chief executive officer Gary Kenneth Toomey, will be to ensure that the carrier's domestic operations turn profitable.
The Naresh Goyal promoted airline, where the Abu Dhabi-based Etihad Airways has picked up a minority stake, makes money on international routes but is heavily bleeding when it comes to domestic operation. In 2012-13, the losses of the airline from domestic operations has been over Rs 1,100 crore, whereas, the international operations fetched them a profit of over Rs 350 crore.
"The new management would urgently need to work towards making its domestic operations profitable. Making Jet Airways' domestic operations profitable is necessary for the airline and for the domestic aviation industry," said Kapil Kaul, CEO of Centre for Asia Pacific Aviation, an aviation consultancy firm. Kaul further said that Jet needs to put a business model in place for the domestic operations and put a right framework in place to support it.
27/06/13 Mihir Mishra/Indian Express