: Jet Airways, India's second-largest airline, has come out with a plan to reduce costs by 20 billion rupees (US$285.9 million) over the next two years.
The full-service carrier, which swung to a net loss of 13.23 billion rupees in the April-June quarter from a 580 million rupee profit a year earlier, is battling high fuel prices, a weakening rupee and intense competition that has pushed down fares.
"The two significant proposals considered by the board of directors recently, i.e., infusion of capital and the monetisation of the airline's stake in its loyalty programme, bode well for the long-term financial health and sustainability of the airline," Jet Airways founder and Chairman Naresh Goyal said.
As part of the turnaround strategy, the company plans to adopt fuel- and cost-efficient Boeing 737 MAX aircraft, deliver 3-4 per cent growth in revenue per average seat kilometre, restructure its balance sheet to lower interest payments and lease out excess aircraft complete with crew and maintenance services.
Etihad Airways, which owns around 24 per cent of Jet Airways, so far seems to be standing with the struggling airline. Reports had surfaced in the local media indicating that the Abu Dhabi-based vairline might exit Jet Airways.