Jet Airways (India) Ltd has posted its highest-ever net loss of Rs 2,154 crore in the fourth quarter ended March 31, impacted by higher operating expenditure and exceptional costs. The country’s second largest carrier had reported a net loss of Rs 496 crore during the same quarter a year ago.
The private carrier, part-owned by Abu Dhabi's Etihad, took a charge of Rs 700 crore on investment in its loss-making unit Jetlite.
The carrier also posted a non-cash extraordinary write down of Rs 936 crore and aircraft-on-ground (AOG) impact of Rs 417.6 crore, the company said in statement.
AOG is an aviation maintenance issue that is prevents an aircraft from operating.
“We need to take stringent measures to ensure our success in this challenging and competitive aviation industry. There can be no short-term solutions. The changes required will take time to implement,” Jet Airways’ Chairman Naresh Goyal said.
The airline’s revenue for the quarter under review was flat at Rs 4,566 crore (Rs 4,536 crore) even as consolidated net loss for FY14 increased to Rs 4,129 crore (Rs 780 crore).
Following the losses, the carrier has set up a taskforce to undertake a major restructuring exercise, while it hired airline advisors Seabury APG to formalise a long-term network and fleet plan. The airline will also put in steps to “delineate” individual brands - Jet Airways and JetKonnect - in the domestic market.
The company has also appointed Cramer Ball – former Chief Executive Officer of Air Seychelles – as its CEO, subject to regulatory approvals and security clearances.
Gaurang Shetty, Director and Manager, will continue to head Jet Airways till the approvals are obtained.
Earlier this month, Jet Airways' chief financial officer and acting CEO Ravishankar Gopalakrishnan had resigned. The company, however, did not provide a reason for the resignation.
Shares in Jet Airways closed down 3.53 per cent to Rs 268.15 apiece on a weak BSE, which ended down 0.68 per cent on Tuesday.