MIRA INFORM REPORT
|
Report
Date : |
28th
November, 2006 |
IDENTIFICATION
DETAILS
|
Name : |
JET AIRWAYS (INDIA) LIMITED |
|
|
|
|
Registered
Office : |
SM Centre, Near Marol Naka, Andheri Kurla Road, Andheri
(East) Mumbai – 400 059, Maharashtra, India |
|
|
|
|
Country
: |
India |
|
|
|
|
Financials
(as on) : |
31.03.2006 |
|
|
|
|
Date
of Incorporation : |
01.04.1992 |
|
|
|
|
Com.
Reg. No.: |
11-66213 |
|
|
|
|
CIN
No.: |
U99999MH1992PTC066213 |
|
|
|
|
TAN
No.: (Tax
Deduction & Collection Account No.) |
MUMJ00366C / MUMJ06594A / MUMJ05793ES |
|
|
|
|
Legal
Form : |
A Public
Limited Liability Company. The company’s shares are listed on the Stock
Exchanges. At
present, it is quoted below offer price to the public. |
|
|
|
|
Line
of Business : |
Domestic Airline operations in India on main Trunk routes. |
RATING & COMMENTS
|
MIRA’s
Rating : |
B |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
Maximum
Credit Limit : |
-- |
|
|
|
|
Status
: |
Moderate |
|
|
|
|
Payment
Behaviour : |
Slow but
correct |
|
|
|
|
Litigation
: |
Exist |
|
|
|
|
Comments
: |
Subject
is an established company in aviation industry. It’s proposed merger with
another private airlines Sahara failed and subject incurred substantial loss
and invited a lot of litigation. Due to fierce competition, the company’s
profit margin is under severe pressure. The
company can be considered normal for business dealings at usual trade terms
and conditions with slight caution. |
LOCATIONS
|
Registered
Office : |
SM Centre, Near Marol Naka, Andheri Kurla Road, Andheri
(East) Mumbai – 400 059, Maharashtra, India |
|
Tel.
No.: |
91-22-28505080 |
|
Fax
No.: |
91-22-28560622 |
|
E-Mail
: |
|
|
Website
: |
|
|
|
|
|
Head
Office : |
S. M.
Centre, Andheri – Kurla Road, Andheri (East), Mumbai – 400 059, Maharashtra |
|
Tel.
No.: |
91-22-28505080/4271/5627/5628/5629 |
|
Fax
No.: |
91-22-28560622 |
|
E-Mail
: |
|
|
|
|
|
Branches
: |
Located
at:- Y
Mumbai,
Maharashtra Y
Ahmedabad,
Gujarat Y
Goa Y
Kochi,
Kerala Y
Kolkata,
West Bengal Y
Mangalore,
Kerala Y
Bangalore,
Karnataka Y
Hyderabad,
Andhra Pradesh Y
Chennai,
Tamilnadu Y
Coimbatore
Y
Delhi |
DIRECTORS
|
Name : |
Mr.
Naresh Goyal |
|
Designation
: |
Chairman |
|
|
|
|
Name : |
Mr. Ali
Ghandour |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr.
Victoriano P. Dungca |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr.
Charles A. Adams |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. J.
R. Gagrat |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr.
Javed Akhtar |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. I.
M. Kadri |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. P.
R. S. Oberoi |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. Aman
Mehta |
|
Designation
: |
Director |
|
|
|
|
Name : |
Dr.
Vijay L Kelkar |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. S.
G. Pitroda |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr.
Saroj K. Datta |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. Yash Raj Chopra |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. Shah Rukh Khan |
|
Designation
: |
Director |
|
|
|
|
Name : |
Dr. Pierre J. Jeanniot |
|
Designation
: |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Naresh Goyal |
|
Designation
: |
Chairman (Non Resident Indian) |
|
Date
of Birth/Age : |
64 years |
|
Experience
: |
32 years |
|
|
|
|
Name : |
Mr. Steve Forte |
|
Designation
: |
Chief Executive Officer |
|
|
|
|
Name : |
Mr. Narendra Mehra |
|
Designation
: |
Company Secretary |
|
|
|
|
|
|
|
MANAGEMENT
: |
|
|
|
|
|
Name : |
Mr. Wolfgang Prock-Schauer |
|
Designation
: |
Chief Executive Officer |
|
|
|
|
Name : |
Mr. Saroj K. Datta |
|
Designation
: |
Executive Officer |
|
|
|
|
Name : |
Mr. Dale Moss |
|
Designation
: |
Chief Operating Officer |
|
|
|
|
Name : |
Mr. Garry Kingshott |
|
Designation
: |
Chief Commercial Officer |
|
|
|
|
Name : |
Mr. Carl Saldanha |
|
Designation
: |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Raja Parthasarathy |
|
Designation
: |
Executive Vice President –
Finance |
|
|
|
|
Name : |
Ms. Anita Goyal |
|
Designation
: |
Executive Vice President –
Marketing and Sales |
|
|
|
|
Name : |
Capt. Werner Borchert |
|
Designation
: |
Vice President – Flight
Operations |
|
|
|
|
Name : |
Mr. Sepp Heinrich |
|
Designation
: |
Vice President – Technical |
|
|
|
|
Name : |
Mr. Sitham Nadarajah |
|
Designation
: |
Vice President – Technical
(Projects) |
|
|
|
|
Name : |
Capt. Ray Heiniger |
|
Designation
: |
Vice President – Flight
Operations |
|
|
|
|
Name : |
Capt. Gustav Baldauf |
|
Designation
: |
Vice President – Flight
Operations |
|
|
|
|
Name : |
Mr. B. P. Baliga |
|
Designation
: |
Vice President – Support
Services |
|
|
|
|
Name : |
Capt. K. Mohan |
|
Designation
: |
Vice President – Flight
Operations (Special Projects) |
|
|
|
|
Name : |
Mr. P. K. Sinha |
|
Designation
: |
Vice President – Passenger
Sales |
|
|
|
|
Name : |
Dato' K. Jeyakanthan |
|
Designation
: |
Vice President – Engineering
Services |
|
|
|
|
Name : |
Mr. Poh Leong Choo |
|
Designation
: |
Vice President – Inflight and
Catering Services |
|
|
|
|
Name : |
Mr. Prasun Sengupta |
|
Designation
: |
Vice President – Corporate
Administration |
|
|
|
|
Name : |
Ms. Nandini Verma |
|
Designation
: |
Vice President – Corporate
Affairs and Public Relations |
|
|
|
|
Name : |
Mr. N. Hariharan |
|
Designation
: |
Vice President – Office of the
Chairman |
|
|
|
|
Name : |
Mr. Rajesh Sharma |
|
Designation
: |
Vice President – Controller |
|
|
|
|
Name : |
Mr. Ashok Barimar |
|
Designation
: |
General Counsel and Vice President
– Legal |
|
|
|
|
Name : |
Ms. Ragini Chopra |
|
Designation
: |
Vice President – North
India |
|
|
|
|
Name : |
Mr. Gaurang Shetty |
|
Designation
: |
Vice President – Marketing |
|
|
|
|
Name : |
Ms. Sonu Kripalani |
|
Designation
: |
Vice President – Passenger
Sales (India) |
|
|
|
|
Name : |
Mr. Sarat Chandran |
|
Designation
: |
Vice President – Human
Resources and Development |
|
|
|
|
Name : |
Mr. Anind Datta |
|
Designation
: |
Vice President – Purchase and
Properties |
|
|
|
|
Name : |
Mr. V. Raja |
|
Designation
: |
Vice President – Asia Pacific |
|
|
|
|
Name : |
Mr. Mike Johnson |
|
Designation
: |
Vice President – Engineering
and Maintenance |
|
|
|
MAJOR SHAREHOLDERS
Category |
No. of shares |
% of shareholding |
Promoters' holdings
|
|
|
|
Promoters
|
69067205 |
80.00% |
|
Persons
acting in concert |
553 |
0.00% |
|
|
|
|
Non promoter's holdings
|
|
|
Institutional Investors
|
|
|
|
Mutual
Funds and UTI |
2503189 |
2.90% |
|
Banks,
Financial Institutions and Insurance Companies |
1898779 |
2.20% |
|
FIIs |
9074567 |
10.51% |
|
|
|
|
Others
|
|
|
|
Private
Corporate Bodies |
966268 |
1.12% |
|
Indian
Public |
2632049 |
3.05% |
|
NRIs /
OCBs |
58492 |
0.07% |
|
Any Other |
132909 |
0.15% |
|
|
|
|
|
TOTAL |
86334011 |
100.00% |
BUSINESS DETAILS
|
Line
of Business : |
Domestic Airline operations in India on main Trunk routes. |
GENERAL INFORMATION
|
Suppliers
: |
|
||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
|
No. of
Employees : |
About 8815 |
||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
|
Bankers
: |
v
Abu
Dhabi Commercial Bank Limited Rehmat Manzil, 75 – B Veer Nariman Road, Mumbai –
400038 Tel : 91-22-22839509 Fax : 91-22-22870686 v
Barclays
Bank Plc 21/23 Maker Chambers VI,
Nariman Point, Mumbai – 400021 Tel : 91-22-56387114 Fax : 91-22-56387184 v
Calyon
Bank Hoechst house, 11th
Floor, Nariman Point, Mumbai – 400021 Tel : 91-22-56319000 Fax : 91-22-56351813 v
Citibank
N.A. 7th Floor, Plot C –
61, Bandra Kurla Complex, G – Block, Bandra,
Mumbai 400051. Tel : 91-22-26535029/5030 Fax : 91-22-26535861/5862 v
Corporation
Bank Veena Chambers, 21 Dalal
Street, Mumbai – 400023 Tel : 91-22-22671715 Fax : 91-22-22672101 v
Deutsche
Bank AG Kodak House, 222, Dr. D.N.
Road, Fort, Mumbai – 400001 Tel : 91-22-22061050/22070692 Fax : 91-22-22072966/22067322 v
HDFC
Bank Limited Ground Floor, Maneckji Wadia
Building (Kalpataru Heritage), Nanik Motwani Marg, Fort,
Mumbai – 400023 Tel : 91-22-24902961 Fax : 91-22-24963994 v
The
Hong Kong and Shanghai Banking Corporation 52/60, Mahatma Gandhi Road,
Mumbai – 400001 Tel : 91-22-22681020 Fax : 91-22-22653812 v
ICICI
Bank Limited Free Press House, 215, Nariman
Point, Mumbai – 400021 Tel :
91-22-22818077/26536457/35 Fax : 91-22-26531233 v
IDBI
Bank Limited Mittal Tower, ‘A’ Wing, Nariman
Point, Mumbai – 400021 Tel : 91-22-22824057/65 Fax : 91-22-22824071 v
ING
Vysya Bank Limited Mittal Tower, ‘A’ Wing, Nariman
Point, Mumbai – 400021 Tel : 91-22-22882616/ 56666419 Fax : 91-22-22818558 v
Standard
Chartered Bank 90 Mahatma Gandhi Road, Mumbai
– 400001 Tel : 91-22-22683575 Fax : 91-22-22624912 v
State
Bank of India Overseas Branch, World Trade
Centre, Cuffe Parade Mumbai – 400005 Tel : 91-22-22181518/ 22189161 Fax : 91-22-22188343/8741 v
UTI
Bank Limited 1st Floor,
Jamnabhoomi Bhavan, jamnabhoomi Marg, Fort, Mumbai – 400005 Tel :
91-22-22835782/84/86/87/88 Fax : 91-22-22844113 v
DBS
Bank Limited v
Kotak
Mahindra Bank Limited v
Dena
Bank v
Canara
Bank |
||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking Relations : |
-- |
|
|
|
|
Auditors
1 : |
Deloitte
Haskins and Sells Chartered
Accountants |
|
Address
: |
12, Dr.
Annie Besant Road, Opp Shiv Sagar Estate, Worli, Mumbai –
400 018, Maharashtra, India |
|
|
|
|
Auditors
2 : |
Chaturvedi and Shah Chartered Accountants |
|
Address
: |
Laxmi Towers, “A” Wing, Bandra-Kurla Complex, Mumbai – 400
051, Maharashtra, India |
|
|
|
|
Associates/Subsidiaries
: |
Ø
Tailwinds
Limited Ø
Jet
Air Skyline Transport Private Limited Activity - Travel, Ticketing and C
& F business Ø
Jetair
Private Limited Ø
Jet
Enterprises Private Limited Ø
Jet
Airways LLC Ø
Jet
Aieways of India Inc Ø
Jetan
Tours Private Limited Ø
Vimpal
Holding Private Limited Ø
International
Cargo Carriers Private Limited Ø
National
Travel Services |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
130,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 1300.000 millions |
|
70,000,000 |
Preference Shares |
Rs. 10/- each |
Rs. 700.000 millions |
|
|
Total |
|
Rs. 2000.000
millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
86,334,011 |
Equity Shares |
Rs. 10/- each |
Rs. 863.340 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
863.300 |
863.300 |
1419.177 |
|
|
2]
Reserves & Surplus |
22195.500 |
19238.300 |
3934.993 |
|
|
4]
(Accumulated Losses) |
0.000 |
0.000 |
(1180.128) |
|
NETWORTH
|
23058.800 |
20101.600 |
4174.042 |
|
|
|
|
|
|
|
|
Subordinated
Debt |
0.000 |
3341.100 |
3080.775 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
2060.200 |
600.000 |
603.433 |
|
|
2]
Unsecured Loans |
46895.800 |
25707.300 |
28415.657 |
|
TOTAL
BORROWING
|
48956.000 |
26307.300 |
29019.090 |
|
|
DEFERRED
TAX LIABILITIES |
3206.600 |
1948.500 |
507.450 |
|
|
|
|
|
|
|
TOTAL
|
75221.400 |
51698.500 |
36781.357 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
21224.800 |
26086.300 |
31115.966 |
|
Capital work-in-progress
|
26656.700 |
320.200 |
151.901 |
|
|
|
|
|
|
|
INVESTMENT
|
1872.300 |
15957.300 |
2334.164 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
4052.500 |
3325.200 |
3474.355 |
|
|
Sundry Debtors
|
4331.500 |
2523.100 |
2344.375 |
|
|
Cash & Bank Balances
|
21042.500 |
12242.400 |
3704.020 |
|
|
Loans & Advances
|
11348.800 |
2353.300 |
1798.801 |
Total Current Assets
|
40775.300 |
20444.000 |
11321.551 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
10656.200 |
7731.700 |
7776.776 |
|
|
Provisions
|
4651.500 |
3377.600 |
365.449 |
Total Current Liabilities
|
15307.700 |
11109.300 |
8142.225 |
|
Net
Current Assets
|
25467.600 |
9334.700 |
3179.326 |
|
|
|
|
|
|
|
TOTAL
|
75221.400 |
51698.500 |
36781.357 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
61354.700 |
44201.700 |
35657.394 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
7222.600 |
5821.300 |
1781.425 |
Provision for Taxation
|
2702.200 |
1901.400 |
150.330 |
Profit/(Loss) After Tax
|
4520.400 |
3919.900 |
1631.095 |
|
|
|
|
|
Export Value
|
13726.600 |
6058.200 |
4465.922 |
|
|
|
|
|
Import Value
|
1420.500 |
1103.200 |
4990.330 |
|
|
|
|
|
Total Expenditure
|
54132.100 |
38380.400 |
33875.969 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
30.06.2006 [1st Quarter] |
30.09.2006 [2nd Quarter] |
|
|
|
|
|
|
Sales Turnover |
|
16465.400 |
16150.400 |
|
Other Income |
|
322.200 |
2061.900 |
|
Total Income |
|
16787.600 |
18212.300 |
|
Total Expenditure |
|
15852.900 |
17392.400 |
|
Operating Profit |
|
934.700 |
819.900 |
|
Interest |
|
642.400 |
578.100 |
|
Depreciation |
|
887.400 |
966.900 |
|
Tax |
|
22.800 |
40.200 |
|
Reported PAT |
|
(449.800) |
(551.300) |
200606 Quarter 1 –
Expenditure
Includes Employees Remuneration and Benefits Rs 2290.80 million Aircraft Fuel
Expenses Rs 5858.50 million Commission Rs 1547.60 million Other Selling &
Distribution Expenses Rs 512.30 million Other Operating Expenses (incl.
aircraft lease rentals) Rs 5643.70 million Tax Includes Current Tax (included
Wealth Tax) Rs 2.70 million Deferred Tax Rs(168.10)million Fringe Benefit Tax
Rs 20.10 million.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
2.02 |
3.47 |
72.01 |
|
Long Term Debt Equity
Ratio |
1.87 |
3.47 |
72.01 |
|
Current Ratio |
1.61 |
1.39 |
1.45 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.24 |
0.89 |
0.75 |
|
Inventory |
15.43 |
12.76 |
10.02 |
|
Debtors |
16.61 |
17.82 |
15.07 |
|
Interest Cover Ratio |
2.65 |
3.29 |
1.46 |
|
Operating Profit Margin
(%) |
18.39 |
29.80 |
27.16 |
|
Profit Before Interest
and Tax Margin (%) |
11.26 |
19.27 |
12.22 |
|
Cash Profit Margin (%) |
11.45 |
19.57 |
18.45 |
|
Adjusted Net Profit
Margin (%) |
4.31 |
9.04 |
3.51 |
|
Return on Capital
Employed (%) |
10.90 |
20.70 |
11.69 |
|
Return on Net Worth (%) |
12.60 |
42.87 |
320.74 |
STOCK PRICES
|
Face Value |
Rs. 10.00 |
|
High |
Rs. 718.00 |
|
Low |
Rs. 704.00 |
LOCAL AGENCY FURTHER INFORMATION
History:
Subject was
incorporated on 1st April, 1992 at Mumbai in Maharashtra having
Company Registration Number 66213 as a private limited company under the
Companies Act, 1956. the Company became a deemed public limited company on 1st
July, 1996 and was converted into a private limited company on 19th
January, 2001. The company became a public limited company on 28th
December, 2004.
Subject
commence the operations as an Air Taxi Operator on 5th May, 1993
with a fleet of four leased Boeing 737 aircraft. They were granted scheduled
airline status on 14th January,
1995.
At the time
of incorporation of the company, its shareholders were Mr. P.V.V. Chalam and
mrs. Anita Goyal. These shares were transferred to Tail Wi9nds on 12 May, 1994,
and Mr. Naresh Goyal holds them on behalf of Tail Winds in terms of RBI
approval letter No. EC.BY.CO. (S) 250/2251/TS/93/94 dated 30th
December, 1993.
Subject
currently provide regular scheduled services to 42 destinations in India and
two destinations outside India, operating 1924 flights weekly. Its aircraft
fleet has grown from four aircraft in 1993 to currently 42 aircraft comprising
34 Boeing 737 aircraft and eight ATR 72-500 aircraft. They have also accepted
delivery of one additional Boeing 737-800 aircraft, which will be included in
to services after it is refurbishing and upon receipt by them of final DGCA
approval to operate the aircraft.
Business:
Subject is
engaged in Domestic Airline operations in India on main Trunk routes.
Generic
Names of the Principal Products/Services of the company are:-
Ø
Passenger
Services
Ø
Cargo
Ø
Excess
Baggage
Subject has
the following aircrafts in its' service.
|
Aircraft |
No. of services |
|
B 737-800 |
9 |
|
B 737-700 |
10 |
|
B 737-400 |
10 |
|
ATR 500 |
6 |
Subject
covers the following routes:-
- Mumbai-Delhi
- Mumbai-Kolkata
- Mumbai-Goa
- Mumbai-Hyderabad
- Mumbai-Mangalore
- Mumbai-Bangalore
- Mumbai-Coimbatore
- Mumbai-Chennai
- Delhi-Jammu
- Delhi-Guwahati-Bargoda
Subject
started its operations on 5th March, 1993.
It
purchases its requirements 100% from international market against Contract,
Cash or L/C terms.
It sells
84.73% in local market and 15.27% in international market against Cash or L/C
terms.
It imports
from U.S.A., Australia and Singapore.
Subject
operates over 225 flights daily to 44 destinations across the country. The rapid expansion of the route network has
earned the prestigious Air Transport World Award 2001 for market
development.
It has 7
Nos. of Boeing 737-300 & 300 services of which 2 are owned and 5 are wet
leased and also owns 5 Nos. of 50 senter Air-crafts, and 7 Nos. of ATR – 72
Air-crafts.
Operations :
Overview
:
The commendable financial
performance of the Company reflects the continued growth of domestic travel
within India, propelled by a buoyant economy, and increased tourist traffic
both domestic and international. The number of revenue passengers carried by
the Company increased from 6.91 million to 8.14 million, an increase of 17.9%.
The Company's increased profitability reflects both increase in yields and
revenues as well as control in costs despite the increase in Aviation Turbine
Fuel costs. This has been reviewed in detail in the Management Discussion and
Analysis.
Subject has
alliances with some of the best airlines, hotels and car rental services such
as :
Ø
The
Park Hotels
Ø
The
Oberoi Group
Ø
The
Leela Hotels and Resorts
Ø
Radisson
Hotels and Resorts Worldwide
Ø
AVIS
Ø
Citibank
Ø
KLM
Royal Dutch Airlines
Ø
Northwest
Airlines
Ø
British
Airways
The company
has entered into tie up for Interline agreement with 12 International Airlines
to fly their passengers in India. Some of them are British Airways, KLM Royal
Dutch Airlines, Northwest Airlines, Air-Canada, Malaysian Airways, Swiss Air,
Delta, Gulf Air, etc.
Subject is
the first Indian airline to receive the World Travel Market Global Award, the
world's premier global travel event in London.
It has also won the H & FS Domestic Airline of the year Award
twice.
Employee Remuneration and Benefits :
Expenses
pertaining to Employee Remuneration and Benefits increased by 51.4% from Rs.
3747 million in Fiscal 2005 to Rs. 5672 million in Fiscal 2006. This increase
reflects increases in salaries and benefits, as well as the increase in average
headcount from 7082 during Fiscal 2005 to 8285 during Fiscal 2006. To meet
operational requirements in Fiscal 2006, the Company employed expatriate pilots
on short-term contracts, which also contributed to the increase in payroll and
related costs.
Selling and Distribution Costs :
Selling and Distribution Costs increased by 38.4% from Rs. 5591 million in
Fiscal 2005 to Rs. 7740 million in Fiscal 2006. This increase is attributable
to:
1] increase of 29.7% in costs related to Computerised Reservation Systems (CRS)
and Global
Distribution Systems (GDS) from Rs. 1036
million in Fiscal 2005 to Rs. 1344 million in Fiscal 2006
essentially due to the increase in the
number of passengers;
2] increase of 34.3% in commission costs paid to General Sales Agents (GSAs)
and travel agents from
Rs. 4208 million in Fiscal 2005 to Rs.
5653 million in Fiscal 2006. This was due to the increased
passenger revenues and revised
productivity-based incentives given to travel agents. The increase
was partly offset by an agreement to
reduce the overriding commission paid to our General Sales
Agent (GSA) in India from 3% to 2% for
passenger revenues and from 2.5% to 2% for cargo revenues
with effect from 1st April, 2005;
and
3] increase in advertisement expenses incurred in Fiscal 2006, which was in
part due to advertising for
the launch of international operations to
Singapore, London (Heathrow) and Kuala Lumpur.
Aircraft Rentals :
Aircraft Rentals increased by 118.5% from Rs. 1986 million in Fiscal 2005 to
Rs. 4340 million in Fiscal 2006, due to the induction of more leased aircraft
during Fiscal 2006; including wide-bodied aircraft for long-haul international
operations. This was offset to a small extent by the reduction in lease rentals
negotiated with lessors at the time of renewal of leases of certain
aircraft.
Subject has
received the following Awards
|
February,
2004 |
Subject
won all three awards, instituted during the year by “feBusiness Traveller”,
viz for “Best Business Class”, “Best Economy Class” and “Best Service
(Airport and Inflight)’, in the Domestic Airline Category. |
|
December,
2003 |
Subject
won the first ever Galileo-express Travel and Tourism Award for “India’s Best
Domestic Airline” for the year 2003. |
|
August,
2003 |
Subject
was declared a “Superbrand” by the world’s leading authority on branding, the
Superbrands Council. |
|
May, 2003 |
Subject
awarded the Boeing Company Award for maintaining “Best Technical Despatch
Reliability” for 2002, in view of maintaining technical despatch reliability
in excess of 99% during the calendar year 2002. |
|
February,
2001 |
Air
Transport World's Market Development Award |
|
March.
2000 |
H &
FS – Best Domestic Airline of the year 1999 for excellence in hospitality |
|
January,
2000 |
Vocational
Excellence Award by Rotary Club of Mumbai North End |
|
December,
1998 |
H &
FS – Best Domestic Airline of the year 1998 for excellence in hospitality |
|
November
5 to 8, 1998 |
The
International Brand Summit |
|
1996-97 |
Best
Airline of the year 1996-97 Award conducted by IATA Agents Association,
Calicut, Tamilnadu |
|
November
20 & 22, 1997 |
Best
Domestic Airline Award for Service Excellence – Key to Competitiveness |
|
September
18 & 21, 1997 |
H &
FS Award by The Rangaswamy Tourism Foundation associated wit the Karnataka
State Tourism Development Corporation |
|
December
13, 1996 |
Best
Domestic Airline of the year for excellence in hospitality |
|
November
12, 1996 |
The World
Travel Market Global Award by Reed Exhibition Companies in conjunction with
Trav Talk for contribution to travel and tourism in the respective media
sponsor regions worldwide |
|
October
24, 1996 |
The Great
Management Show Award for punctuality, safety, quality of service and
customer orientation |
|
September
12, 1996 |
Citibank
Diners Club Blue Moon Award for Service Excellence |
|
October
17, 1994 |
Service
Excellence Award at an International seminar called "Global Managers in
Jurassic Park" hosted by Global Managers. |
SOME
KEY EVENTS
The
chronology of some key events since the company was incorporated on 1st
April, 1992 is as follows :
|
April 1,
1992 |
Incorporated
as a Private Limited Liability company. |
|
May 5,
1993 |
Commence
the operations as an Air Taxi Operator |
|
April 4,
1994 |
First
Airline in India to operate the Boeing 737-400 aircraft. |
|
January
14, 1995 |
Granted
scheduled airline status |
|
December
30, 1996 |
First
private airline in India to execute purchase agreement for Boeing aircraft. |
|
November
12, 1997 |
First
private airline in India to acquire its own aircraft using US EXIM guarantee.
|
|
September
16, 1998 |
First
private airline in India to fly Boeing 737 NG aircraft |
|
October
6, 1998 |
First
private airline in India to fly ATR 72-500 aircraft. |
|
July 1,
2000 |
Introduced
“Jet Mobile”. An online system that provides flight schedule updates to
passengers on their mobile phones. |
|
February
5, 2001 |
Won the
prestigious Air Transport World’s Market Development Award. |
|
April 22,
2002 |
30 millions
passengers flown since commencement of operations. |
|
May 14,
2003 |
First
airline in India to operate the Boeing 737-900 aircraft. |
|
March 23,
2004 |
Commenced
operations to Colombo, Sri Lanka. |
|
May 14,
2004 |
Commenced
operations to Kathmandu, Nepal |
Its major
customers include Individuals, Government Bodies and all types of passengers.
Object of the company
Subjects
main objects as contained in their Memorandum of Association are:
v
To
established, maintain, operate and provide safe, efficient, economical and
properly coordinated air transport services and lines of aerial conveyance
(including scheduled and chartered domestic and international services) for the
carriage of passengers, baggage, mail and freight.
v
To
purchase, take on lease and/or hire or otherwise acquire, own, employ,
maintain, work, manage, control, let on hire, charter, lease, demise all forms
of aerial conveyance for the purpose of transporting or carrying passengers,
baggage, mail and freight, and merchandise of all and every kind and
description, whether as principals, agents or otherwise on national and
international routes.
The main
objects clause and objects incidental or ancillary to the main object of the
Memorandum of Association of the company enable them to undertake their existing
activities and the activities for which the funds are being raised through this
offer.
The
company’s fixed assets of important value include:
®
Plant
and Machinery
®
Furniture
and Fixtures
®
Electrical
Fittings
®
Data
Processing Equipment
®
Office
Equipment
®
Ground
Support Equipment
®
Vehicles
®
Aircraft
and Spare Engine
®
Leased
Aircraft
®
Leased
Property
®
Simulator
®
Software
Press releases
Should
you ride this Jet?
15 March
2005
No, says Rex Mathew* to the medium to long term investor; it is a very
high-risk speculator's stock at its current price.
Those who
did not apply for the high profile Jet Airways IPO and those who applied but
did not get a good allotment must be ruing a lost opportunity. The stock opened
for trading yesterday and surprised even diehard optimists closing above
Rs1,300 — a gain of almost 18 per cent. Some investors could, perhaps, be
considering buying the stock even now after yesterday's strong showing. Should
they?
Granted,
the civil aviation market in India is booming and has one of the fastest growth
rates in the world. Granted again that Jet has a dominant market share in the
domestic market. And yes, agreed, Jet has one of the fattest operating margins
among all airlines in the world. But should one be a buyer at Rs1,300 per share
or more than 20 times next year's projected earnings?
The answer,
logically becomes evident in a dispassionate dissection of the sector Jet
operates in and its own stock. First, let us look at the positives for the
stock:
v
Civil
aviation in India can be safely expected to continue its growth momentum in the
foreseeable future.
v
Jet
has a very strong brand and its service delivery matches global standards.
v
Jet
has a large number of peak hour slots at metro airports and therefore will
continue to enjoy pricing power for such flights. New airlines will not get
these prime slots till the airports increase capacity.
v
Jet is
very strong in the business travel segment, which is not as price sensitive as
leisure travel.
v
The
company will shortly mount flights to East Asia, Europe and the US.
v
The
stock offers the only option to stock market investors who desire an exposure
to this fast-growing sector, if one excludes Royal Airways which is planning to
start SpiceJet.
Now the negatives:
v
Jet is
a full service airline. Low-cost carriers are rapidly gaining market share the
world over and would become dominant players in due course. It will not be easy
for Jet to convert itself into a low-cost carrier, if it decides to, without
compromising its brand equity. The other option of launching a separate brand
for low-cost operations would entail additional investments.
v
The
domestic market will see a good number of low-cost carriers in the near future.
At least three of them, Kingfisher, SpiceJet and the one being promoted by
Wadias of Bombay Dyeing will be strong players. Along with Air Deccan, they
will provide serious competition to full service carriers like Jet. In future,
expect global majors like Virgin and EasyJet to enter the domestic market as
both have publicly stated their interest in India.
v
Though
Jet dominates the peak hour traffic from metros, this will not last forever as
airports expand and start offering additional slots for other airlines.
v
The
other two full service carriers, Indian Airlines and Air Sahara, already have
aggressive fleet expansion plans. Jet was able to gain market share from Indian
Airlines partly because the aircraft acquisition programme of the state owned
airline was stuck for almost 15 years. IA will add new aircraft starting next
year. Sahara, under Rono Dutta former president of US Airways, has vastly
improved service delivery and will offer tough competition in the business
travel segment.
v
Both
IA and Sahara will have much more flexibility in pricing as they are not listed
entities who have to worry about quarterly numbers. Once they have the
additional aircraft, expect prices to go down further thereby reducing
operating margins.
v
Entry
of new players in an industry like aviation, which requires specialized skills,
would push up personnel costs. There is already a shortage of pilots in the
industry. Expect it to worsen in future.
v
Fuel
is a major component of the operating costs of an airline. With crude prices
very close to their all time highs, fuel prices will be increased in April.
Worse still, oil analysts do not expect crude price to fall much from current
levels in the foreseeable future. A further increase in oil prices is expected
to ground many airlines across the globe.
v
Jet
could have expanded into smaller cities and developed them as a buffer against
declining margins in the metro sector. But it has been slow in seizing this
opportunity unlike Air Deccan, which has taken the lead. Air Deccan is
connecting smaller markets not serviced by other airlines and is expanding
rapidly by acquiring smaller turbo-prop aircraft.
v
Jet's
overseas forays will take a long time to break even, let alone make a profit.
To start the operations, it will have to lease wide-bodied aircraft at the
current high rates. The segments it is entering are highly competitive,
serviced by large established airlines as well as price warriors. Many of these
airlines can afford to drop prices only to kill new entrants. One can fly Sri
Lankan to most Far East destinations from Delhi and back via Colombo for under
Rs10,000, hotel accommodation at Colombo included.
v
Jet
does not have any major expansion plans for the domestic market. According to
Jet's chairman himself, the airline would expand capacity by 10 to 15 per cent
over the next few years. So there is a very real risk of Jet focusing its
energies in stabilising the international routes while competitors eat into
domestic market share.
No denying
that Jet is an efficient and well-managed company. It is reasonably certain
that the company will remain profitable in the short to medium term even in the
face of increased competition and all the risks detailed above. But it is also
reasonably certain that one or two years from now it will be extremely
difficult for Jet to maintain, if not improve, the profit margins it is
enjoying now. And there in lies the problem. The stock is just too over-priced
as profitability can at best remain static, if not decline. For a medium to
long term investor there are enough equally good and some even better stories
in the market at far lower valuations.
Naresh Goyal wins ‘Star of Asia’ award
18 Nov 2005
Close
on the heels of bagging the Economic Times ‘Emerging Company of the Year’ award
Mr. Naresh Goyal, Chairman, Jet Airways has bagged the ‘Star of Asia’ award
instituted by the Business Week a leading magazine published from United States
of America, Europe and Asia.
Along with Mr. Naresh
Goyal, Founder–Chairman of Jet Airways India Limited other Indians who won the
award are ICICI Bank chief executive KV Kamath, Council for Scientific and
Industrial Research (CSIR) director general R Mashelkar and Petroleum Minister
Mani Shankar Aiyar.
The Indians are among the
25 Asians who were presented the award ‘Stars of Asia’ in a glittering function
in Beijing, Republic of China, on November 16, 2005 by Mr. George Bush, former
President of the United States.
On winning this honour, Mr.
Goyal said, “It is truly rewarding to be recognized in the category of Global
Managers, with so many Asian business houses emerging as global conglomerates.
I owe this to each and every member of our staff and colleagues in junior,
middle and senior Management levels, whose dedication, hard work, focus on the
Customer and passion for service excellence, have given life to our vision.”
Other Asians who won the
honour are Chen Tianqiao, Founder and Chief Executive, Shanda Interactive,
China; Katsuhiko Machida, President, Sharp Corp., Japan; Katsuaki Watanabe,
President, Toyota Motor Corp., Japan; Yin Yimin President, ZTE Corp., China and
Ho Kwon Ping, Founder and Chairman, Banyan Tree Holdings, Singapore.
KV Kamath was recognized in
the category of Financiers, R Mashelkar in the category of Innovators and Mani
Shankar Aiyar in the category of Agenda Setters.
Naresh Goyal has had over
37 years of experience in the Civil Aviation industry. He is the recipient of
several national and international awards. Some of them are ‘Entrepreneur of
the Year Award for Services’ from Ernst & Young and also ‘Distinguished
Alumni Award-2000 for meritorious and distinguished performance as an
Entrepreneur’ and also the ‘most respected company in travel and hospitality
sector’.
Other awards conferred on
Mr. Goyal include the ‘Outstanding Asian-Indian’ award for leadership and
contribution to the global community given by the Indian American Centre for
Political Awareness, ‘Aerospace Laurels’ for outstanding contribution in the
field of Commercial Air Transport twice, in April 2000 and February 2004.
Recently he received the citation of ‘Emerging Company of the Year’ award of
the Economic Times for Corporate Excellence.
Mr. Goyal has been elected
to the Board of Governors of the International Air Transport Association
(IATA), at its 60th Annual General Meeting held in Singapore in early June
2004. As part of the 31-member Board Mr. Goyal will serve a two-year term until
the close of IATA’s 62nd AGM in June 2006. This is the first time that the
Chairman of a private airline of India has been elected to IATA’s prestigious
Board of Governors.
About Jet Airways (India)
Ltd:
Jet
Airways currently operates a fleet of 40 classic and next generation Boeing
737-400/700/800/900 aircraft, 3 A340-300 E aircraft and 8 modern ATR72-500
Turboprop aircraft. With an average age of a little over 4.6 years, the airline
has one of the youngest aircraft fleet in the world. Approximately 24,000
passengers travel daily on Jet Airways' 285 flights to 48 destinations that
span the length and breadth of India and beyond, including Colombo in Sri
Lanka, Kathmandu in Nepal, Singapore, Kuala Lumpur in Malaysia and London
Heathrow, UK. Since inception in May 1993 until end-October 2005, Jet Airways
has flown over 57.2 million passengers.
Jet Airways operates 'Flight of Fantasy'
for underprivileged youngsters on Children's Day
14 Nov 2005
Jet Airways once
again operated its annual’ Flight of Fantasy’ for underprivileged children to
celebrate ‘Children’s Day’. This special flight was operated in association
with GE Elfun volunteers who sponsored the children from the Magic Bus
organisation and Cancer Patients Aid Association (CPAA). Hindustan Petroleum
Corporation Limited (HPCL) and Oberoi Flight Services were also partners for
this event. In addition to this, children from the Tata Memorial Centre were
invited for Jet Airways’ Flight of Fantasy.
Flight 9W5221 took off on
Sunday, November 13, 2005 at 14:00 hrs from Terminal 1B of Mumbai’s Chatrapati
Shivaji Airport. The flight duration over and around Mumbai lasted for
approximately 45 minutes.
The wonderful experience
began when the children were checked-in for this special flight at the airport.
The group was then escorted to the Club Premier Lounge where light snacks and
beverages were served courtesy of Oberoi Flight Services. There was an
orientation of the airport building conducted by Jet Airways’ personnel. The
sight of airplanes taking off and landing excited the young guests who were
patiently explained the many facets of airline operations by Jet Airways’
staff.
These young passengers were
then entertained by artists who had been specially brought in for the event.
Furthermore, the children were enthralled to meet and interact with Bollywood
Star Salman Khan who made a surprise entry at the Children’s Day celebrations.
The children were then escorted to board Jet Airways’ next generation aircraft
Boeing 737-800. Thus began their special tryst with the clouds on board Jet
Airways.
The fuel for the flight was
provided free of charge by Hindustan Petroleum Corporation Limited (HPCL).
The children thoroughly
enjoyed this experience and were presented with Jet Kids Bags containing
goodies sponsored by Jet Airways, GE Elfun Volunteers and HPCL.
This flight was amongst
several similar Flights of Fantasy that Jet Airways has operated since
commencing its operations in 1993, in support of the underprivileged children.
Magic Bus, is an NGO that
teaches life skills to children at risk, through the medium of sports, creative
expression and adventure activities. Cancer Patients Aid Association is an NGO
which works with cancer patients, helping them to live a normal life and often
funding the treatment they undergo for cancer.
GE Elfun Volunteers is a
global organisation of GE Employees & Retirees committed to improving the
communities, the company and their lives through volunteerism, leadership and
camaraderie. GE Elfun volunteers serve as helpers, mentors, tutors and friends,
making a difference in the lives of the less fortunate and under privileged in
the community. Their core purpose is to create an extraordinary impact in
social development within local and regional communities, adding values to
lives, education and rehabilitation of less fortunate and resources
optimisation in the partnered Non-Government Organizations.
Oberoi Airport Services, a
unit of EIH Ltd (The Oberoi Group), operates Lounges and Restaurants at Mumbai,
Kolkata, Chennai and Cochin Airports. It provides lounge services to First and
Business class passengers of several Leading International and Domestic
airlines.
Hindustan Petroleum
Corporation Limited (HPCL), the second largest integrated refining and
marketing oil company in India, has always realized the importance of looking
beyond balance sheets and focusing on improving the Quality of Life of the
lesser fortunate mortals. Through its network spread across the country, HPCL
carries out a wide range of welfare activities aimed at the weaker sections of
the society.
Jet Airways wins coveted award for
'Emerging Company of The Year' at The Economic Times Awards for Corporate
Excellence
09 Nov 2005
Jet
Airways (India) Limited was honoured with the ‘Emerging Company of the Year
Award for 2004-2005 at a glittering function held on Tuesday, November 8, 2005
at the Hilton Towers, Mumbai. Mr. Naresh Goyal, Chairman, Jet Airways received
the award from the distinguished Union Finance Minister Mr. P. Chidambaram.The
announcement of this award was first made on November 4, 2005.
Accepting the Award and
Citation, Chairman Naresh Goyal said, “I accept this Award on behalf of each
and every member of our staff and colleagues in junior, middle and senior
Management, whose dedication, hard work, focus on the Customer and passion for
service excellence, have given life to our expressed vision.” Jet Airways has
pioneered many services in the Indian Aviation industry, from Braille safety
manuals for visually impaired passengers, to E-ticketing and Web Check-in. It
holds the merit of being a fully IATA E-compliant airline in India for the past
one and a half years.
The award is particularly
significant at this crucial stage when Jet Airways is surging forward, in its
endeavour to conquer the international market. Its services continue to respect
and complement its passengers’ needs.
In continuation of the
airline’s efforts to widen their network and reach, maximize automation and
make air travel across international and domestic destinations an absolutely
seamless process, Jet Airways, have always invested in a modern fleet for their
international operations.
In addition to the Purchase
Agreement with Boeing last month for the acquisition of 10 B777-300 ER
aircraft, the airline has recently executed a Purchase Agreement for 10 Airbus
A 330-200 aircraft with an option for 10 more. The first of these aircraft will
fly in the Jet Airways livery in the first quarter of 2007. Jet Airways has
also recently concluded Frequent Flyer Programme partnerships with
international carriers such as Gulf Air and Qantas Airways thereby giving its
passengers added value and benefits.
Jet
Airways’ journey began with the announcement of the Open Skies policy by the
government in 1992. By adhering to the simple philosophy of keeping costs low
and continuously improving productivity and service standards, Jet Airways has
become a global brand with market leadership in India. Earlier this year the company
sold 20% of its equity through an IPO, raising about $444m.
Jet Airways and Qantas announce Frequent
Flyer Programme Partnership
02 Nov 2005
Jet Airways and
Qantas, have entered into a reciprocal relationship, allowing their frequent
flyer programme members to earn and redeem miles when traveling with either
airline, with effect from November 1, 2005.
The partnership with Qantas
enables Jet Privilege members to earn and redeem their JPMiles across Qantas’
global network of 145 destinations in Australia and 39 other countries,
thereby, further extending the reach of the JP programme.
As a partnership launch
offer, both Jet Privilege and Qantas Frequent Flyer will offer their members
the opportunity to earn double JPMiles and double points respectively when they
take a flight on their new partner airline between November 1 and November 30,
2005.
Speaking on this
partnership Gaurang Shetty, Vice President – Marketing, Jet Airways said, “This
partnership with Qantas reinforces Jet Airways’ desire to add value to its JP
programme through such strategic partnerships with global air carriers.” He
further added, “Our commitment towards a high quality of service and efficient
operations are values that Qantas shares with Jet Airways, making this a partnership,
customers of both airlines will benefit from.”
Khursheed Lam, Manager -
India and South Asia, Qantas said, “Jet Airways is an ideal partner for us in
India, due to its superior understanding of the market and its leading share of
the market. Also its high standards and wide reaching network make it a force
to reckon with in the Indian subcontinent.”
Jet Airways link with
Qantas comes just a fortnight after the announcement of a similar partnership
between Jet Airways and Gulf Air.
Jet Airways announces frequent flyer
programme partnership with Gulf Air
17 Oct 2005
Jet Airways has
signed an agreement with Gulf Air, which allows members of the Jet Privilege
(JP) programme to earn and redeem JP Miles, when traveling with their new
partner airline. Moreover, elite tier Jet Privilege members can also enjoy
premium privileges such as lounge access and extra baggage allowance among
others, when they fly with Gulf Air. As this is a reciprocal relationship,
members of Gulf Air Frequent flyer programme will also be able to earn and
redeem miles, as well as enjoy special benefits when traveling on Jet Airways.
Jet Airways’
extensive network across the Indian subcontinent of over 280 daily flights
together with Gulf Air’s 57 weekly services between India and the Gulf region,
enables frequent flyers of both airlines to now enjoy a host of convenient
connections offered by the two carriers.
To celebrate the launch of
this new global partnership, Jet Airways’ Jet Privilege programme is offering
its members an opportunity to earn Double JPMiles when they take a flight on
Gulf Air between October 15 and November 15, 2005 and vice versa.
When asked for his opinion
on Jet Airways’ increasing global affiliations, Gaurang Shetty, Vice President
– Marketing, Jet Airways commented, “Global travel amongst our frequent flyers
is at an all time high. As Jet Airways expands its network to newer
international destinations, we are committed to ensuring that our frequent
flyers get to enjoy the best of benefits and rewards, no matter where in the
world they travel. Our partnerships with other global leaders in the airline
industry, is a direct result of this desire.”
“We at Gulf Air
see this new relationship as a perfect combination,” commented Louise
Robertson, Manager Loyalty Programmes Gulf Air. “With Jet Airways’ youthful
dynamism and Gulf Air’s experience, innovation and wide reaching network, this
is a win-win partnership for our respective customers.”
Jet Airways operates "Flight of
Inspiration" for the Spastic Society of Karnataka
14 Nov 2006
Jet Airways, India's premiere airline, on the occasion of
Children's day operated today a Flight of Inspiration for the children of
Spastic Society of Karnataka. The Honourable Governor of Karnataka Mr. T N
Chaturvedi was present as Chief Guest to interact with the children and flagged
off the flight. This is the second flight operated by Jet Airways on this
special occasion and follows the Flight of Fantasy, which flew children from
different NGOs in Mumbai on Sunday 12th November 2006.
The Flight of Inspiration 9W 1672 took off at 1440hrs from Bangalore's HAL
Airport flew over the city of Bangalore towards Mysore and returned in 45
minutes.
The wonderful experience began when the children were checked-in for this
special flight at the airport. The group was then escorted to the Lounge and
waited patiently for their "Flight of Inspiration". The sight of
airplanes taking off and landing excited the young guests who were patiently
explained the many facets of airline operations by Jet Airways' staff.
The fuel for the flight was provided free of charge by Indian Oil Corporation
(IOC). The children thoroughly enjoyed this experience and were presented with
Jet Airways mementos such as aircraft models. Sky Gourmet served snacks to 100
children. The Landing and Navigational charges were especially waived off by
HAL.
The Flight of Inspiration experience culminated with child magician Karun
displaying his skills in the midst of children at the HAL airport.
This flight was amongst several similar Flights that Jet Airways has operated
since commencing operations in 1993, in support of special children on the
occasion of Children's Day.
About Jet Airways:
Jet Airways currently operates a fleet of 46 classic and next generation Boeing
737-400/700/800/900 aircraft, 3 Airbus A340-300E aircraft, 1 Airbus A330-200
aircraft and 8 modern ATR 72-500 turboprop aircraft. With an average fleet of
5.3 years, the airline has one of the youngest aircraft fleet in the world. Jet
Airways' operates over 330 daily flights to 49 destinations that span the
length and breadth of India and beyond including London Heathrow in U.K.,
Singapore, Kuala Lumpur in Malaysia, Colombo in Sri Lanka, and Kathmandu in
Nepal.
CMT REPORT
[Corruption, Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts, India Prisons
Service, Interpol, etc.
1] INFORMATION ON DESIGNATED PARTY
No exist
designating subject or any of its beneficial owners, controlling shareholders
or senior officers as terrorist or terrorist organization or whom notice had
been received that all financial transactions involving their assets have been
blocked or convicted, found guilty or against whom a judgement or order had
been entered in a proceedings for violating money-laundering, anti-corruption
or bribery or international economic or anti-terrorism sanction laws or whose
assets were seized, blocked, frozen or ordered forfeited for violation of money
laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset Declaration :
No records exist to suggest that the
property or assets of the subject are derived from criminal conduct or a prohibited
transaction.
4] Record on Financial Crime :
Charges or
conviction registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with Government :
No record exists to
suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report
:
No press reports /
filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors
often have been predictive and in some cases have created vulnerabilities to
credit deterioration.
Our Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local
laws, regulations or policies that prohibit, restrict or otherwise affect the
terms and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 44.65 |
|
UK Pound |
1 |
Rs. 87.23 |
|
Euro |
1 |
Rs. 58.96 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP
CAPITAL |
1~10 |
6 |
|
OPERATING
SCALE |
1~10 |
4 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT
LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
36 |
This
score serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound
financial base with the strongest capability for timely payment of interest
and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base
are regarded healthy. General unfavourable factors will not cause fatal
effect. Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent.
Repayment of interest and principal sums in default or expected to be in
default upon maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists.
Caution needed to be exercised |
Credit not recommended |