The Hindu : Business : Jet Airways net more than doubles; pays 30 p.c.

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Wednesday, May 18, 2005

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Business

Jet Airways net more than doubles; pays 30 p.c.

Staff Correspondent

No threat from low-cost carriers, says Managing Director

MUMBAI: Jet Airways has reported a net profit of Rs. 391.99 crores for 2004-05 against Rs. 163.11 crores in the previous year. Revenues for the year, during which the company made its first public issue of capital, were up 24 per cent at Rs. 4,420.10 crores (Rs. 3,565.74 crores) and the board has recommended a dividend of 30 per cent.

For the fourth quarter ended March 2005, it reported a net profit of Rs. 133 crores (Rs. 82.87 crores) on revenues of Rs. 1222.61 crores (Rs. 961.13 crores).

Wolfgang Prock-Schauer, Managing Director, Jet Airways, said, "Like in our domestic operations where we have been profitable from our first year of operations except in 2001-02 and 2002-03, we expect to be profitable in our international operations from the first year itself.''

Saroj Dutta, Executive Director, said, "In our first year of international operations, we expect to get around $22 million from the Mumbai-Singapore operations, $18 million from Chennai-Kuala Lumpur operations, $75 million from Mumbai-London operations and $100-110 million from Mumbai-Newark operations.

"In international operations, although the margins are lower, the advantage is that input costs like fuel prices, landing and navigation charges are lower and therefore, break-even load factor is more manageable."

On competition from low cost airlines, Mr. Prock-Schauer said, "the scope of these start-up carriers is low because they have to bear the same high airport costs, fuel costs and infrastructure problems."

Jet operates a fleet of 44 aircraft with 36 Boeing 737s and eight ATRs.

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