Jet Airways has denied reports of stake sale and questions raised against its sustainable operations.

Vinay Dube, CEO, Jet Airways said ," Jet Airways (India) Limited would like to clarify that recent media reports about the sustainability of the airline are not only factually incorrect, but also malicious. The airline would also like to deny any conjecture of a stake sale."

"Indian aviation is experiencing strong growth and Jet Airways is well placed to be a part of this growth story. The company is committed to create a growth-oriented, sustainable future and a revitalized experience armed with the addition of 225 B737-MAX fuel efficient aircraft, which will be inducted in its fleet over the next decade, with 11 being inducted this fiscal. This envisioned growth will in fact, require additional human capital," he added.

Cost saving

Economic Times had reported that the airline may have to stop operations if it is not able to carry out the ongoing cost cutting measures within 60 days. Mint had a report stating that the airline has approached bankers to revive stake sale talks.

Jet Airways said that the Company’s stated focus of creating a healthier and more resilient business, it has been implementing several measures to reduce costs as well as realize higher revenues, for desired business efficiencies. Some of these areas amongst others include, sales and distribution, payroll, maintenance and fleet simplification.

As part of these measures, the Company has been in dialogue with all its key stakeholders – internal and external. "The dialogue with employees, has been to apprise them of the challenges being faced by the aviation sector in India and by the Company in particular, with an intent to enlist their full support and cooperation for realizing necessary savings across all business functions," Dube said.

High growth

Despite the high growth environment, the aviation industry is currently passing through a tough phase given a depreciating rupee and the mismatch between high fuel prices and low fares.

"While continuing with cost saving and revenue enhancement measures to create a growth-oriented sustainable future, Jet Airways will continue to accord highest priority to safety and will ensure that safe operations continue to be resourced as required under regulatory compliances," he added.

"We are confident that the various transformation initiatives identified and under implementation by the Company will help in addressing the current issues faced by us and the industry. In fact, several transformation initiatives have already started to deliver positive results," the statement said.

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