The recent economic downturn
took a heavy toll on the Indian
aviation industry; many major airlines bore the brunt of it, and Jet
Airways was no exception. As the economic slowdown took hold, losses piled
up even in the country's second largest private carrier. As a result, Jet
Airways suffered a net loss of Rs 225 cr for the quarter ended June 30, 2009, on a
total income of Rs 2,428 cr. It posted the highest ever loss of Rs 961 cr in the
year ended March 31, 2009.
Needless to say, the management made its first big gamble by eyeing
Air Sahara in 2006. Acquiring Sahara came as a huge drain on Jet's
resources, both on the financial and management fronts. Adding to its woes, its
alliance with Kingfisher also has not yet reaped the desired benefits. Nevertheless,
the private entrepreneur, thriving in an economy dominated by the public
sector airlines, is now all set to recapture its lost luster. Jet has left no
stone unturned in its efforts to drive down the costs. The airline came up with a
$600-mn improvement plan on three fronts like wastage reduction, network
restructuring and cost saving and cash conservation. "The going has been very
tough, but there is a lot of fighting spirit in
Jet," says Sudheer Raghavan, Chief Commercial Officer, Jet Airways.
Jet Airways has also adjusted its route network and implemented several internal
measures to trim costs across the organization.
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