Jet Airways confident of growth, despite reports of financial issues

Jet Airways clarifies the recent news regarding financial issues in the airline company. As per a tweet in the name of Vinay Dube, CEO of Jet Airways, it denies the statement came in the media that Jet Airways is in a conjecture of a stake sale.

The tweet says Jet Airways is well placed to be part of the growth of the Indian Aviation industry. The airline is going to add 225 fuel efficient aircrafts to the fleet over the next decade; 11 being inducted this fiscal year.

“In line with 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,” states the tweet message.

“Despite the high growth environment, the aviation industry in India is currently passing through a tough phase due to the depreciating rupee and mismatch between high fuel prices and low fares. Jet Airways has been in existence for over 25 years and thought the years has been successful in combating such business volatility”, continues the message.

The tweet clarifies the recent dialogues with its stake holders, including the employees, were part of the various measures to reduce costs and to generate more revenue. It states the dialogue with employees were to apprise them of the challenges being faced by the aviation sector in India and by the Company in particular, with intent to enlist their full support and cooperation for realizing necessary savings across all business functions.

“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”, concludes the tweet.

In another letter issued to the Corporate Relationship Office, BSE; Kuldeep Sharma, Vice President, Global Compliance & Company Secretary of Jet Airways stated that “Jet Airways can’t fly beyond 60 days” as appeared in the media is incorrect and malicious. The company also denies any talks of stake sales. The letter concludes with an assurance of disclosure of any required information as applicable, as per SEBI requirements.