Wednesday, August 29, 2018

Jet Airways aims to cut costs, sell stake in loyalty programme

Troubled carrier Jet Airways India said it will sell a stake in its loyalty programme and cut as much as 20-billion rupees ($285m) in costs over the next two years as part of a turnaround plan after years of losses in a competitive market.

Announcing the biggest quarterly loss since 2015, the board of the Mumbai-based airline considered fundraising measures at a meeting to help revive the company, Jet Airways said in a filing to the stock exchange late on Monday. The management has been tasked to accomplish this in a "time-bound manner," it said.

"The air passenger traffic is extremely strong but it’s now on the incumbents how they deal with the financial problems," said Sanjiv Bhasin, executive vice-president at Mumbai-based IIFL Securities. "The good prospects of the aviation sector provide optimism that a dark knight, who can look beyond the negative rhetoric, may be willing to step in," he said.
29/08/18 Business Live
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