Mounting losses: Jet blames pilots’ strike
JET AIRWAYS, India’s second-biggest domestic airline, reported yesterday a second-quarter net loss blamed on low air traffic, a strike by pilots and overcapacity.
The airline posted a net loss of Rs4.06bn ($88m/£54m) for the quarter ending September, from a loss of Rs3.84bn ($81m/£50m) a year earlier.
Jet shares fell by 9.05 per cent to Rs365.8 ($7.7/£4.74) on the Mumbai stock exchange yesterday.
“The company suffered losses mainly from lower yields, due to intense competition and overcapacity,” Jet executive director Saroj Dutta said in a statement to the Mumbai stock exchange.
Revenues for the quarter fell 25 per cent to Rs23.2bn ($49m/£30m).
Jet said disruptions in September due to a pilots' strike also contributed to the losses.
Jet's pilots went on a five-day walk-out, taking mass sick leave after the management sacked two senior pilots for setting up an unrecognised trade union.
Thousands of Jet customers were forced to change their travel plans in one of the biggest aviation disruptions in India in recent years, affecting hundreds of domestic and international services.
In October last year, Jet struck an alliance with fierce rival Kingfisher Airlines to help both carriers battle slowing passenger growth and high fuel costs which have pushed up fares.
Higher fares have travellers back to India's extensive and less expensive train network or cars.
Private carrier Jet, which flies to London, New York, Toronto, Singapore and other international destinations as well as to most Indian cities, operates 365 domestic and 74 international flights daily.
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