INSUBCONTINENT EXCLUSIVE:
Jet Airways said it has been implementing cost-reduction measures for "desired business efficiencies"Jet Airways chief executive officer
Vinay Dube on Friday dismissed reports about the airline's sustainability
Terming such reports "not only factually incorrect, but also malicious", he said the airline has been implementing several measures to
reduce costs and realise higher revenues "for desired business efficiencies". Comments from Jet Airways' management came after news agency
Reuters reported citing a senior company executive that the airline told its pilots that it may be grounded in 60 days unless cost-cutting
measures including pay cuts are put in place."The airline would also like to deny any conjecture of a stake sale," he said.Pointing at rupee
depreciation and "the mismatch between high fuel prices and low fares", Mr Dube stated that the dialogue with the airline's employees was
to "apprise them of the challenges being faced by the aviation sector"
( Jet Airways shares fall 7%)Here's the full text of Mr Dube's statement: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 revitalised 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.In line with the Company, stated focus of creating a healthier and
more resilient business, it has been implementing several measures to reduce costs as well as realise higher revenues, for desired business
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 realising necessary savings across all business
functions.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
let Airways has been in existence for over 25 years and through the years has been successful in combating such business volatility.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
required under regulatory compliances.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.
