• Home
• /
• Aviation

Jet eyes profit 
by 2017

Jet Airways, India’s second-biggest carrier, forecast on Wednesday a return to profit in three years through cost-cuts, route-sharing with new partner Etihad Airways and restructuring of hefty debt.

The publicly traded airline, which has not posted an annual profit since 2007, has been struggling in an overcrowded market beset by cut-throat fare wars, high fuel costs and shoddy infrastructure.

“The game plan is in place, it’s now about delivery,” Jet Airways’ new chief executive Cramer Ball told reporters in New Delhi.

“It’s a three-year plan — 2015 we will reduce losses, 2016 we will consolidate and 2017 we’ll have profitability,” he said.

Ball was speaking at the airline’s first news conference with Etihad since India cleared in May the fast-growing Abu Dhabi airline’s purchase of a 24-per cent stake in the Indian carrier for Rs21 billion ($330 million).

Jet’s shares jumped nearly six per cent on the turnaround plan before finishing up 3.5 per cent at 264.95 rupees.

Ball, an Australian, said Jet was already profitable on international routes which contribute 43 per cent of revenues, a figure he projected would rise to 63 per cent by 2015.

Ball said Jet would look at disposing of some planes to staunch losses.