Jet Airways’ fleet to remain unchanged for three years
Yields are under pressure due to price wars and the airline will increase capacity by only 10%, chief finance officer Ravichandran Narayan said
Mumbai: Jet Airways (India) Ltd, India’s second-largest airline by passengers carried, said its fleet will remain unchanged for one to three years as yields are under pressure due to price wars.
The airline will increase capacity by only 10%, acting chief finance officer Ravichandran Narayan said.
Addressing shareholders at the company’s 22nd annual general meeting, Narayan said yields are under pressure due to price wars, adding that revenue growth will be in line with capacity growth.
The airline will receive Boeing Dreamliners or B787s by the end of 2017, he said.
In 2013, Etihad Airways had picked up a 24% stake in Jet Airways for Rs.2,057 crore.
The total debt of Jet Airways stands at Rs.11,902 crore. He said out of the total, 76% is dollar denominated while the balance is in rupees.
“Aircraft interest loans have sub-3% interest while working capital loans have a sub-10% interest rate,” Narayan said. “The airline is current in all its payments to banks and vendors.”
Separately, James Hogan, chief executive officer of Etihad Airways, was appointed vice-chairman of Jet Airways. Jet Airways founder Naresh Goyal is chairman of the airline.
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