Though Jet Airways' losses widened to Rs 267 crore in the December 2013 quarter against a profit of Rs 85 crore a year ago, its growing focus on international operations could be earnings-per-share accretive for investors in the long term.
Over the last two years, the contribution of Jet AirwaysBSE -0.11 % India's international operations to its overall revenues has increased from about 55% to 58%, helped by the Jet-Etihad deal, superior operational performance overseas and higher yiield. The sale of 24% stake to the Abu Dhabi-based Etihad Airways offers Jet Airways not only access to the Middle East but also to Europe and North America.
Its international operations have been better than domestic services, which have been hit by high fuels costs, competition and price-sensitive travellers. Thanks to its performance overseas, the airline's yield or revenue passenger per kilometre is on the rise. For Jet Airways, the breakeven seat factor for its international operations is 86.1%; it is 80% for domestic operations.
10/02/14 Rajesh Naidu/Economic Times
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Over the last two years, the contribution of Jet AirwaysBSE -0.11 % India's international operations to its overall revenues has increased from about 55% to 58%, helped by the Jet-Etihad deal, superior operational performance overseas and higher yiield. The sale of 24% stake to the Abu Dhabi-based Etihad Airways offers Jet Airways not only access to the Middle East but also to Europe and North America.
Its international operations have been better than domestic services, which have been hit by high fuels costs, competition and price-sensitive travellers. Thanks to its performance overseas, the airline's yield or revenue passenger per kilometre is on the rise. For Jet Airways, the breakeven seat factor for its international operations is 86.1%; it is 80% for domestic operations.
10/02/14 Rajesh Naidu/Economic Times
