Jet eyes low-cost management to stay afloat

The country’s largest private airline, Jet Airways, plans to reduce administrative overhead and improve its manpower efficiency. The company is also evaluating the need for a pilot-training school and setting up a maintenance hanger, a source said. It further hopes to raise its online booking share to 25% in two years, the source added.
When contacted, Jet Airways chairman Naresh Goyal said, “We are looking into a pilot training school and a final decision will be taken soon.” About reduction in administrative overhead, he said that company constantly looks into cost-cutting exercise.
The airline has around 25% share of the Indian market and will be a key beneficiary of the strong ongoing domestic growth.
Jet operates flights to over 50 domestic and popular international destinations, including the US. The company provides scheduled services to over 50 domestic airports and on international routes to Colombo, Kathmandu, London, Kuala Lumpur, Singapore, NewYork and Toronto. At present, the airline earns close to 40% of its revenues from international operations, which is slated to go up to 50% in three years.
Jet has started working on its $400-million rights issue, delayed from 2007 by turbulent financial markets. It will raise a further $400 million from a private placement of up to 10% of Goyal’s stake in the carrier but it waiting for a stabilised market condition.
12/06/08 Mithun Roy/Economic Times

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Categories: Jet Airways Jun 2008