 "Jet Airways optimises fleet utilisation, expands Abu Dhabi flights")
Jet Airways is improving its aircraft utilisation and expanding services to Abu Dhabi and within India as a part of its network optimisation efforts.
These measures helped it increase revenue and cut down full-year standalone loss by half to Rs 1813 crore by March 2015. The fleet size grew to 107 in March (up from 101 in March 2014) and it flew its narrow-body Boeing 737s for 11.6 hours day from 11 hours in FY14.
“We are continuously improving aircraft utilisation by adding more red-eye flights (wee-hour flights) and early-hour departures. The utilisation of the narrow-body fleet grew 5.4 per cent in FY15,” the airline said in its latest annual report. It added that the capacity on international routes increased 15 per cent while capacity on domestic routes reduced by six per cent.
Abu Dhabi-based Etihad acquired 24 per cent in Jet in April 2013 and the partnership is taking shape. Jet Airways owes the service tax department over Rs 109 crore in dues, the airline’s auditors observed in the annual report.
“Passengers and revenues delivered by Etihad Airways and Etihad Airways Partners rose by 427 per cent and 363 per cent, respectively, in FY14-15 compared to FY13-14,” the airline added.
It is continuously looking at cost reduction initiatives. “We are confident that these measures will help us to bring down costs that are the key to overall turnaround,” the airline said. Last May, it unveiled a three-year business plan and said it will return to profit in 18 months.
These measures helped it increase revenue and cut down full-year standalone loss by half to Rs 1813 crore by March 2015. The fleet size grew to 107 in March (up from 101 in March 2014) and it flew its narrow-body Boeing 737s for 11.6 hours day from 11 hours in FY14.
“We are continuously improving aircraft utilisation by adding more red-eye flights (wee-hour flights) and early-hour departures. The utilisation of the narrow-body fleet grew 5.4 per cent in FY15,” the airline said in its latest annual report. It added that the capacity on international routes increased 15 per cent while capacity on domestic routes reduced by six per cent.
Abu Dhabi-based Etihad acquired 24 per cent in Jet in April 2013 and the partnership is taking shape. Jet Airways owes the service tax department over Rs 109 crore in dues, the airline’s auditors observed in the annual report.
“Passengers and revenues delivered by Etihad Airways and Etihad Airways Partners rose by 427 per cent and 363 per cent, respectively, in FY14-15 compared to FY13-14,” the airline added.
It is continuously looking at cost reduction initiatives. “We are confident that these measures will help us to bring down costs that are the key to overall turnaround,” the airline said. Last May, it unveiled a three-year business plan and said it will return to profit in 18 months.
Jet owes over Rs 100 crore in service tax
Jet Airways owes the service tax department over Rs 109 crore in dues, the airline's auditors observed in their report which is a part of the annual report. Sources said these dues pertain to tax on computer reservation systems which the airline had contested but has now decided to pay.
The airline denied it has defaulted on payment and has agreed to discharge tax dues.
“As of 31st March 2015, the Company has discharged all its tax obligations except certain debatable service tax dues, which the Company has voluntarily agreed to discharge as a responsible corporate citizen. This has already been communicated to the Tax Department and part payment of the dues has already been made. The outstanding as on 31st March, 2015 is appropriately disclosed in the Financial Statements,” a Jet Airways spokesperson said.
In their report the auditors said as on March end there were no undisputed statutory dues pending for more than six months since due date except service tax due (including interest) of Rs 184 crore. Subsequently the airline paid Rs 75 crore in service tax.