Thursday, August 23, 2018

Jet mulls austerity steps

Mumbai: The board of crisis-ridden Jet Airways will consider cost reduction measures and a turnaround plan along with the June-quarter results at its meeting on August 27, the airline said on Wednesday.
The full service carrier, which is grappling with financial woes, has been looking at ways to reduce costs amid high oil prices and intense competition.
Jet Airways, which suffered a loss of more than Rs 1,000 crore in the fourth quarter ended March 31, 2018, was earlier understood to have mooted salary cuts of 5-25 per cent for its employees. However, the airline had reportedly scrapped that plan.
The airline was also in discussion with TruJet to sublease up to seven of its ATR planes to the regional carrier. The wet lease is part of its plans to reduce costs and raise additional revenues.
A wet lease is an arrangement under which an airline provides an aircraft, its entire crew, maintenance and insurance to another airline. At present, Jet Airways has 15 ATRs in its fleet. The carrier is also said to be looking at offering some stake in its frequent flyer programme to a private equity firm.
23/08/18 Telegraph