MIRA
INFORM REPORT
|
Report Date : |
12.07.2012 |
IDENTIFICATION DETAILS
|
Name : |
JET AIRWAYS
(INDIA) LIMITED (w.e.f. 28.12.2004) |
|
|
|
|
Formerly Known
As : |
JET AIRWAYS INDIA
PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Siroya Centre, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
01.04.1992 |
|
|
|
|
Com. Reg. No.: |
11-066213 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.863.300
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999MH1992PLC066213 |
|
|
|
|
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. |
|
|
|
|
Line of Business
: |
Providing passenger and cargo air transportation services. |
|
|
|
|
No. of Employees
: |
13177 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (31) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
||
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
|
Maximum Credit Limit : |
USD 104174000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a leading private sector airline in It is established and a reputed company having satisfactory track.
There appears some accumulated losses recorded by the company. However, the
networth of the company seems to be strong. Trade relations are reported to
be fair. Business is active. Payments are reported to be usually correct and
as per commitment. The company can be considered for business dealing on a usual trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered /
Corporate Office : |
Siroya Centre, |
|
Tel. No.: |
91-22-61211000 / 28505080/ 4271/ 5627/ 5628/ 5629 |
|
Fax No.: |
91-22-6121s1950 / 28560622 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Engineering Office
: |
Jet Airways Hanger, Opposite Indian Airlines Sports Club, Kalina, Santacruz (East), Mumbai – 400029, Maharashtra, India |
|
Tel No.: |
91-22-26675112 / 5120 |
|
Fax No.: |
91-22-26675242 |
|
|
|
|
Branch Office
: |
Located at:- v Mumbai v Ahmedabad v
v
v Kolkata v Mangalore v
v
v Chennai v
v
|
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Naresh Goyal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Saroj K. Datta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ali Ghandour |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Victoriano P. Dungca |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Javed Akhtar |
|
Designation : |
Director |
|
Date of Birth/
Age : |
17.01.1945 |
|
Qualification : |
Bachelors degree in Arts |
|
Expertise in
specific functional area : |
Mr. Akhtar, a
nominated Member of the Rajya Sabha, is a well-known scriptwriter, lyricist,
poet, activist and is a famous media personality. Mr. Akhtar was awarded the
Padma Bhushan in 2007. Mr. Akhtar has won several awards, including the
National Award for Best Lyricist five times. |
|
|
|
|
Name : |
Mr. I.M. Kadri |
|
Designation : |
Director |
|
Date of Birth/
Age : |
01.12.1929 |
|
Qualification : |
Bachelors degree in Engineering from |
|
Expertise in
specific functional area : |
Mr. Kadri, is a
member of the Council of Architecture, |
|
|
|
|
Name : |
Mr. Aman Mehta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Yash Raj
Chopra |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Ms. Monica Chopra |
|
Designation : |
Company Secretary and Associate Legal Counsel |
|
|
|
|
SENIOR
MANAGEMENT : |
|
|
Name : |
Mr. Nikos Kardassis |
|
Designation : |
Chief Executive Officer |
|
|
|
|
Name : |
Mr. Saroj K. Datta |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Capt. Hameed Ali |
|
Designation : |
Chief Operating Officer |
|
|
|
|
Name : |
Mr. Sudheer Raghavan |
|
Designation : |
Chief Commercial Officer |
|
|
|
|
Name : |
Ms. Anita Goyal |
|
Designation : |
Executive Vice President - Revenue
Management and Network Planning |
|
|
|
|
Name : |
Mr. Sitham Nadarajah |
|
Designation : |
Executive Vice President - Technical |
|
|
|
|
Name : |
Mr. M. Shivkumar |
|
Designation : |
Senior Vice President – Finance |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
10,995 |
0.01 |
|
|
10,995 |
0.01 |
|
|
|
|
|
|
69,057,210 |
79.99 |
|
|
69,057,210 |
79.99 |
|
Total shareholding of Promoter and Promoter Group (A) |
69,068,205 |
80.00 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
3,257,495 |
3.77 |
|
|
302,729 |
0.35 |
|
|
2,430,864 |
2.82 |
|
|
5,788,000 |
6.70 |
|
|
11,79,088 |
13.64 |
|
|
|
|
|
|
1,014,441 |
1.18 |
|
|
|
|
|
|
3,889,168 |
4.50 |
|
|
196,885 |
0.23 |
|
|
386,224 |
0.45 |
|
|
217,304 |
0.25 |
|
|
658 |
- |
|
|
168,262 |
0.19 |
|
|
5,486,718 |
6.36 |
|
Total Public shareholding (B) |
17,265,806 |
20.00 |
|
Total (A)+(B) |
86,334,011 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
86,334,011 |
- |
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(1) Indian%20LIMITED%20-%20186723%2012-Jul-2012_files/image003.gif){kind=small}
Individuals / Hindu Undivided Family%20LIMITED%20-%20186723%2012-Jul-2012_files/image004.gif){kind=small}
Individual shareholders holding nominal
share capital up to Rs.0.100 million BUSINESS DETAILS
|
Line of Business : |
Providing passenger and cargo air transportation services.
|
GENERAL INFORMATION
|
No. of Employees : |
13177 (Approximately) |
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|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
v Abu Dhabi Commercial Bank v AXIS Bank Limited v Banca Popolare Di Milano v
Bank of v
Bank of v
Bank of v Banque Nationale de Paris v Barclays Bank Plc v Canara Bank v Citibank N.A. v Corporation Bank v Credit Agricole S.A. (formerly known as Calyon Bank) v DBS Bank Limited v Deutsche Bank AG v DVB Bank SE v First National Bank v HDFC Bank Limited v
v ICICI Bank Limited v IDBI Bank Limited v Indian Overseas Bank v ING Belgium SA / N.V. v JP Morgan Chase, N.A. v Kotak Mahindra Bank Limited v Lloyds Bank (formerly known as Bank of Scotland Plc) v
National Bank of v Punjab National Bank v Standard Chartered Plc v
State Bank of v Syndicate Bank v The Royal Bank of Scotland N.V. (formerly known as ABN AMRO Bank) v Yes Bank Limited |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
Banking Relations : |
-- |
|
|
|
|
Auditors 1 : |
|
|
Name 1 : |
Deloitte Haskins
and Sells Chartered
Accountants |
|
Address : |
12, |
|
|
|
|
Auditors 2 : |
|
|
Name 2 : |
Chaturvedi and
Shah Chartered
Accountants |
|
Address : |
|
|
|
|
|
Legal Advisors : |
Gagrats |
|
|
|
|
Holding Company
: |
Tail Winds Limited |
|
|
|
|
Wholly Owned
Subsidiary Company (Control exists) : |
Jet Lite ( |
|
|
|
|
Enterprises over which controlling shareholder of
Holding Company and his relatives are able to exercise significant influence
directly or indirectly : |
v Jetair Private
Limited v Jet Airways LLC v Trans
Continental e Services Private Limited v Jet Enterprises
Private Limited v Jet Airways of
India Inc. v India Jetairways
Pty Limited v Jet Airways v Jetair Tours
Private Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
180000000 |
Equity Shares |
Rs.10/- each |
Rs.1800.000 millions |
|
20000000 |
Preference Shares |
Rs.10/- each |
Rs.200.000 millions |
|
|
Total |
|
Rs.2000.000
millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
86334011 |
Equity Shares |
Rs.10/- each |
Rs.863.300
millions |
|
|
|
|
|
Of the above Equity Shares:
- 69,067,205
Equity Shares held by the holding company, Tail Winds Limited and its nominee.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
863.300 |
863.300 |
863.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
32374.000 |
32847.300 |
33320.600 |
|
|
4] (Accumulated Losses) |
(7193.900) |
(7290.800) |
(2614.400) |
|
|
NETWORTH |
26043.400 |
26419.800 |
31569.500 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
45104.500 |
38361.800 |
45009.200 |
|
|
2] Unsecured Loans |
89699.400 |
99233.000 |
115476.100 |
|
|
TOTAL BORROWING |
134803.900 |
137594.800 |
160485.300 |
|
|
Deferred payment
liability towards Investment in a wholly owned subsidiary company |
0.000 |
1375.000 |
2750.000 |
|
|
DEFERRED TAX LIABILITIES |
336.300 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
161183.600 |
165389.600 |
194804.800 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
136158.100 |
144299.200 |
162619.400 |
|
|
Capital work-in-progress |
3489.100 |
2996.000 |
5831.700 |
|
|
|
|
|
|
|
|
INVESTMENT |
17250.900 |
17450.000 |
17450.000 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
7111.800 |
5847.900 |
5956.700
|
|
|
Sundry Debtors |
9657.700 |
8107.700 |
7322.500
|
|
|
Cash & Bank Balances |
5877.100 |
7728.300 |
13945.000
|
|
|
Other Current Assets |
0.000 |
0.000 |
0.000
|
|
|
Loans & Advances |
27329.100 |
16138.100 |
16282.800
|
|
Total
Current Assets |
49975.700
|
37822.000
|
43507.000
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
18355.400
|
17255.500
|
14232.600
|
|
|
Other Current Liabilities |
25465.900
|
18480.000
|
18582.400
|
|
|
Provisions |
1868.900
|
1442.100
|
1788.300
|
|
Total
Current Liabilities |
45690.200
|
37177.600
|
34603.300
|
|
|
Net Current Assets |
4285.500
|
644.400
|
8903.700
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
161183.600 |
165389.600 |
194804.800 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Operating Revenue |
127768.300 |
104696.400 |
114769.800 |
|
|
|
Non - Operating
Income |
1742.100 |
1532.800 |
3099.000 |
|
|
|
TOTAL (A) |
129510.400 |
106229.200 |
117868.800 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employees Remuneration and Benefits |
13421.900 |
12265.500 |
14105.000 |
|
|
|
Aircraft Fuel Expenses |
43667.000 |
31516.500 |
49150.100 |
|
|
|
Selling and Distribution Expenses |
12617.200 |
9849.100 |
10981.700 |
|
|
|
Other Operating Expenses (Including Maintenance, Airport Charges, etc.) |
33208.800 |
30111.100 |
36472.200 |
|
|
|
Aircraft Lease Rentals |
8443.600 |
8317.300 |
7128.300 |
|
|
|
Excess Depreciation Reversal in respect of
Earlier Years |
(1222.500) |
0.000 |
(9158.700) |
|
|
|
Mark to Market - Derivatives |
(481.700) |
(704.500) |
1007.300 |
|
|
|
CENVAT Credit |
0.000 |
0.000 |
(3499.300) |
|
|
|
TOTAL (B) |
109654.300 |
91355.000 |
106186.600 |
|
|
|
|
|
|
|
|
Less |
PROFIT/ (LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
19856.100 |
14874.200 |
11682.200 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
10283.600 |
9930.100 |
7380.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION(C-D) (E) |
9572.500 |
4944.100 |
4301.900 |
|
|
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION (F) |
9106.200 |
9619.600 |
8998.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX(E-F) (G) |
466.300 |
(4675.500) |
(4696.200) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
369.400 |
0.900 |
(672.800) |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER
TAX (G-H) (I) |
96.900 |
(4676.400) |
(4023.400) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
(7290.800) |
(2614.400) |
2089.100 |
|
|
|
|
|
|
|
|
|
Less |
Adjustment on account of change in Policy for exchange
difference |
0.000 |
0.000 |
680.100 |
|
|
|
|
|
|
|
|
|
|
BALANCE/ (LOSS)
CARRIED TO THE B/S |
(7193.900) |
(7290.800) |
(2614.400) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Passenger and Cargo Revenue |
51337.500 |
41016.100 |
35530.700 |
|
|
|
Interest on Bank Account |
2.300 |
4.100 |
14.600 |
|
|
|
Other Income |
448.300 |
292.600 |
713.900 |
|
|
|
Leasing Operations |
5172.400 |
7176.800 |
1828.300 |
|
|
|
|
0.000 |
0.000 |
10457.300 |
|
|
|
|
0.000 |
0.000 |
399.800 |
|
|
TOTAL EARNINGS |
56960.500 |
48489.600 |
48944.600 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Components and Spares |
3618.800 |
1912.300 |
2350.700 |
|
|
|
Capital Goods |
643.800 |
2706.700 |
16963.100 |
|
|
TOTAL IMPORTS |
4262.600 |
4619.000 |
19313.800 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
1.12 |
(54.17) |
(46.60) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.09.2011 |
31.03.2012 |
31.12.2011 |
|
Net Sales |
31875.000 |
39309.000 |
38404.700 |
|
Total Expenditure |
33287.500 |
39159.100 |
39757.200 |
|
PBIDT (Excl OI) |
(1412.500) |
149.900 |
(1352.500) |
|
Other Income |
1445.700 |
1618.400 |
3254.100 |
|
Operating Profit |
33.200 |
1768.300 |
1901.600 |
|
Interest |
2140.100 |
2579.000 |
2373.900 |
|
Exceptional Items |
(2748.900) |
461.600 |
1856.600 |
|
PBDT |
(4855.800) |
(349.100) |
1384.300 |
|
Depreciation |
2279.900 |
2488.100 |
2396.100 |
|
Profit Before Tax |
(7135.700) |
(2837.200) |
(1011.800) |
|
Tax |
0.300 |
144.000 |
0.400 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(7136.000) |
(2981.200) |
(1012.200) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(7136.000) |
(2981.200) |
(1012.200) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
0.07 |
(4.40) |
(3.41)
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.36 |
(4.47) |
(4.09)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.25 |
(2.57) |
(2.28)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.02 |
(0.18) |
(0.15)
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
6.93 |
6.62 |
1.10
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.09 |
1.02 |
1.26
|
LOCAL AGENCY FURTHER INFORMATION
|
Check
List by Info Agents |
Available
in Report (Yes / No) |
|
1)
Year of Establishment |
Yes |
|
2)
Locality of the firm |
Yes |
|
3)
Constitutions of the firm |
Yes |
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4)
Premises details |
No |
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5)
Type of Business |
Yes |
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6)
Line of Business |
Yes |
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7)
Promoter's background |
Yes |
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8)
No. of employees |
Yes |
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9)
Name of person contacted |
No |
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10)
Designation of contact person |
No |
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11)
Turnover of firm for last three years |
Yes |
|
12)
Profitability for last three years |
Yes |
|
13)
Reasons for variation <> 20% |
-- |
|
14)
Estimation for coming financial year |
No |
|
15)
Capital in the business |
Yes |
|
16)
Details of sister concerns |
Yes |
|
17)
Major suppliers |
No |
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18)
Major customers |
No |
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19)
Payments terms |
No |
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20)
Export / Import details (if applicable) |
No |
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21)
Market information |
-- |
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22)
Litigations that the firm / promoter involved in |
-- |
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23)
Banking Details |
Yes |
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24)
Banking facility details |
Yes |
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25)
Conduct of the banking account |
-- |
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26)
Buyer visit details |
-- |
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27)
Financials, if provided |
Yes |
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28)
Incorporation details, if applicable |
Yes |
|
29)
Last accounts filed at ROC |
Yes |
|
30)
Major Shareholders, if available |
No |
Note:
The Registered Office
of the Company has shifted to Siroya Centre, Sahar Airport Road, Andheri
(East), Mumbai - 400 099 with effect from 18th July, 2011.
HISTORY
Subject was
incorporated on 1st April, 1992 at Mumbai in
Subject commences
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 Winds 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
REVIEW OF
OPERATIONS
During the year,
the Company continued to have a tight control on the costs which resulted in
their unit costs (excluding aviation turbine fuel) being lower as compared to
the previous financial year. While they may not be able to impact external
factors, their relentless focus remains on improving efficiencies and
productivity in their operations. Airlines across the world have been impacted
by the increase in the aviation turbine fuel prices and Jet Airways is no exception.
Though they would have liked to pass on more of the fuel price increases to
their customers, it was not possible to do so in the short term.
Their focus has
also been to improve their operational metrics including the on-time
performance of their flights. Their efforts in this regard have ensured that
they have been consistently bettering ourselves and have been the industry
leaders in terms of on-time performance. Also, their International growth and
seat factors continue to improve constantly which is a testimony to the growing
emergence of the airline, as the preferred choice for guests to and from the
Indian subcontinent. The benefits of these measures have translated in the
Company consolidating its leadership position with a market share of 26.1% during
the year.
The Indian
aviation market continued its growth during the year at a steady pace. The
growth of the Indian economy was a major trigger and the aviation market has
been growing at a healthy 2 times multiple of the GDP growth. Over the next few
years, they expect the domestic aviation market to grow at around 15% per annum
and this has also been supported by various studies and analysis carried out by
independent agencies like IATA, CAPA, etc. However, they believe that both the
domestic and international markets will remain competitive given that there is
currently some over capacity in both markets.
Domestic passenger
traffic for the year, reported a 21% growth as compared to the same period last
year while international passenger traffic registered an increase of 23.8%. The
Company ended the financial year with revenues of Rs.129510.400 millions, an
increase of 21.9% versus last year, with a system-wide seat factor of 75.1% on
the domestic and 80.4% on the international sectors.
The Company
carried 14.670 millions revenue passengers on its international and domestic
services during the year, up from 12.040 millions in the previous financial
year.
They strengthened
their presence in the low fare / low cost space and their ‘Jet Airways Konnect’
and ‘Jet Airways Konnect Select’ products have been widely accepted by their
guests. For the financial year ended 31st March, 2011, their
capacity on Jet Airways Konnect services formed 59% of their overall domestic
capacity in terms of number of seats.
The Company also
benefited from the strategic expansion of its domestic and international
service network. They now serve 23 international destinations, which include
the addition of a non-stop service between Mumbai and
Fleet
The Company
currently operates a fleet of 97 aircraft, which includes 10 Boeing 777-300 ER
aircraft, 12 Airbus A330-200 aircraft, 55 Next Generation Boeing
737-700/800/900 aircraft and 20 modern ATR 72-500 Turboprop aircraft. With an
average age of 5.15 years, the airline has one of the youngest aircraft fleet
in the world.
Of the 10 B777-300ER aircraft, 7 aircraft have been sub-leased as
follows:
• In 2009, 4
aircraft were sub-leased to Turkish Airlines Inc. (“TK”) for a period of 25
months. The lease in respect of these four aircraft expires between the months
of July and November 2011.
• In 2010, 3
aircraft were sub-leased to Thai Airways Public Company Limited (“Thai
Airways”) for a period of 36 months. The lease in respect of these three
aircraft expires in May 2013.
In view of the
planned level of operations and the fleet size, the Company proposes to deploy
2 of the 4 aircraft being redelivered by TK later this year, for its own
operations. The remaining 2 aircraft being redelivered by TK are being sub
(dry) leased to Thai Airways for a period of 2 years, with an option to extend
the lease by a further period of 1 year.
Flights to 71
destinations span the length and breadth of India and beyond, including New
York (both JFK and Newark), Toronto, Brussels, London (Heathrow), Milan,
Johannesburg, Hong Kong, Singapore, Kuala Lumpur, Colombo, Bangkok, Kathmandu,
Dhaka, Kuwait, Bahrain, Muscat, Doha, Abu Dhabi, Dubai, Jeddah, Sharjah, Riyadh
and Dammam.
Jet Airways
Konnect service operates on key domestic routes and is designed to meet the
needs of the low-fare segment with value-for-money fares. Jet Airways Konnect
links seven major metros - Mumbai,
SUBSIDIARY COMPANY:
Jet Lite (
Jet Lite follows
the low-cost, no- frills business model. For the financial year ended 31st
March, 2011, Jet Lite posted a total income of Rs.17861.500 millions (2009-10:
Rs.15794.700 millions) and a Net Loss of Rs.1074.700 millions (200910: Profit
of Rs.461.900 millions). In view of the loss, the Board of Directors of Jet
Lite has not recommended a dividend; neither on the Equity Shares nor on the
Compulsorily Fully Convertible Non-Cumulative Preference Shares for the year
ended 31st March, 2011 (previous year : Nil). The Company continues
to support the operations of Jet Lite.
The highlights of
the operating performance for the financial year ended 31st March,
2011 are as follows:
|
Traffic
Parameters |
Year ended 31st March |
|
|
|
2011 |
2010 |
|
Departures (Number) |
39,003 |
39,602 |
|
Available Seat Kilometers (ASKMs) (Million) |
5,481 |
5,156 |
|
Revenue Passenger Kilometers (RPKMs) (Million) |
4,340 |
3,866 |
|
Passenger Load Factor (%) |
79.2 |
75 |
|
Revenue Passengers (Million) |
4.33 |
3.61 |
As on 31st
March, 2011, Jet Lite had a fleet of 19 aircraft, which consists 18 Boeing 737
series and 1 Canadian Regional Jet (CRJ) 200 series. The airline flies to 27 domestic
destinations and 1 international destination (
MANAGEMENT
DISCUSSION AND ANALYSIS
Industry Structure
and Development
The aviation industry
has emerged out of the global financial crisis at a steady pace and on the back
of this, Indian aviation industry has also shown high growth rates over the
last few quarters. Though there are airlines who are still reporting
substantial losses in the Indian context, the general trend has been an upward
one.
With significant
capacity rationalisation in the domestic aviation sector in the last two years
and strong passenger growth, capacity increase is well aligned to demand.
Domestic air traffic grew by 19% in Fiscal 2011 compared to the same period
last year. This compares to capacity increase of 11% for the same period.
Widespread social
and political unrest which started with
OUTLOOK
With the Hon’ble
Bombay High Court delivering the judgment on
International
Operations continue to be robust and they are achieving very healthy seat
factors. Their flight to
The Indian economy is expected to show good growth and this should
improve domestic aviation industry.
AWARDS
In April 2010, the
Company was adjudged the ‘Best International Airline’ at the Condé Nast
Traveller India Awards.
In April 2010, the
Company was adjudged the ‘Best Domestic Full Sevice Airline of the Year’ at the
Class of Travel and Tourism Awards at Taj Lands End Bandra, Mumbai.
In April 2010, Jet
Airways emerged victorious in the ‘Award for excellence in operations –
Airline’ category of the Bird Express TravelWorld Awards.
In August 2010,
the Company was adjudged the ‘Best Airline –in the Champagne/Sparkling Wine’
Category at the Global Traveler’s 6th Annual Wines on the Wings International
Business Class Airline Wine competition. Jet Airways won the ‘Best Airline
Champagne/Sparkling Wine’ for its Lanson Noble Cuvee Brut Millesime 1999.
In September 2010,
the Company won the award of the ‘International Airlines’ category of the prestigious
7th ‘Friends of Thailand’ Awards 2010.
In September 2010,
Jet Airways was conferred with the prestigious ‘Best Full Service Airline-
International (Indian)’ and ‘Best Full Service Airline- Domestic’ awards for 2009
by the Air Passengers Association of India (APAI).
In September 2010,
the Company was declared the ‘Most Preferred Airline for Business Class’ at the
fourth edition of the CNBC Awaaz Travel Awards 2010.
In November 2010,
the Company became the proud recipient of the “Best Long Haul Airline ex
In December 2010,
the Company was declared the ‘Airline with Best Business Class Service in the
World’ at the Business Traveller Awards 2010 in
In December 2010,
the Company was adjudged the ‘Best Airline – in Central/South Asia and
In January 2011,
the Company was adjudged the winner of the coveted Customer and Brand Loyalty
Award 2011 in the “Domestic Commercial Airlines Sector” for the fourth
consecutive year.
In January 2011,
Jet Airways was conferred with the “Amity Leadership Award for Business
Excellence by leveraging IT in Aviation Sector” at
In February 2011,
the Company was selected as a Power Brand among leading corporate enterprises
in
In March 2011, the
Company was awarded the “Regional Deal of the Year” for 2010 by the Airfinance
Journal, a leading financial magazine serving the commercial aviation industry
worldwide.
In March 2011, Jet
Airways was awarded the ‘AIR CARGO EXCELLENCE AWARD 2011’ by Air Cargo World
Magazine, in the category - “Air Carrier – Up to 199,999 annual tonnes”,
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2011 (Rs.
in millions) |
|
a) Service Tax demands in appeals |
12771.400 |
|
b) Fringe Benefit Tax demands in appeals |
851.300 |
|
c) Claims against the Company, pending Civil and Consumer Suits |
488.300 |
|
d) Inland Air Travel Tax demands which are under appeal |
42.600 |
|
Amount deposited with the Authorities for the above demands |
10.500 |
|
e) Claim for Octroi |
289.900 |
|
f) Letters of Credit Outstanding |
13934.500 |
|
g) Bank Guarantees Outstanding |
6476.700 |
|
h) Corporate Guarantee given to Banks and Financial Institution
against credit facilities, and to Lessor against financial obligations
extended to Subsidiary Company |
|
|
Amount of guarantee |
4216.600 |
|
Outstanding Amounts against the guarantee |
4216.600 |
|
i) Income Tax demands in appeals |
2917.300 |
|
j) Sales Tax demands in appeals |
Nil |
|
k) Disputed Claims against the Company towards Ground Handling Charges |
Nil |
l) The Company had
acquired 100% shares of Sahara Airlines Limited (SAL) (now known as Jet Lite (
Further as regards
the Company’s execution proceedings against SICCL to recover amounts
aggregating Rs.8210.200 millions for their obligation to indemnify the Company
for income tax demands raised on Jet Lite (India) Limited for assessment years
prior to the effective date of Share Purchase Agreement / Consent Terms and
Consent Award by which SAL Shares were acquired presently stands resolved in
the light of Department quashing such demand on Jet Lite.
Though the Company
has complied with the order of the Hon’ble Bombay High Court by making payment
of Rs.4785.100 millions including interest of Rs.1164.300 millions, thereafter
based on legal advice it has decided to file an appeal with the Division Bench of
Bombay High Court contesting the levy of interest @ 9% p.a. and claiming no
interest payable. SICCL has already filed an appeal with the Division Bench of
Bombay High Court for restoration of purchase consideration to Rs.20000.000
millions and for interest to be awarded at 18% p.a. as against 9% p.a. awarded
by the Hon’ble Bombay High Court.
Hence the interest
payment of Rs.1164.300 millions (Rs.1130.500 millions up to 31st
March, 2011) till 4th May 2011 effected by the Company on 5th
May 2011 is not provided in the books of accounts as per its stand above and
will be subject to final determination by the Court.
The Company is a
party to various legal proceedings in the normal course of business and does
not expect the outcome of these proceedings to have any adverse effect on its
financial conditions, results of operations or cash flows.
FIXED ASSETS
Owned Tangible Assets:
v
v
Plant
and Machinery
v
Furniture
and Fixtures
v
Electrical
Fittings
v
Data
Processing Equipments
v
Office
Equipments
v
Vehicles
v
Ground
Support Equipments
v
Simulator
Leased Assets:
v
v
Aircraft
and Spare Engine (Narrow Body)
v
Aircraft
and Spare Engine (Wide Body)
v
Improvement
on Leased Aircraft
v
Improvement
on Leased Property
Intangible Assets:
(Other than internally
generated)
v
Software
v
Landing
Rights
v
Trademarks
WEBSITE DETAILS
BOARD OF DIRECTORS:
Mr. Naresh Goyal
Chairman
Naresh Goyal, the founder Chairman of Jet Airways,
In addition to his responsibilities at Jet Airways, Mr. Goyal was also
appointed Chairman of JetLite in 2007, following the acquisition and subsequent
re-branding of the erstwhile Sahara Airlines Limited.
After graduating in Commerce in 1967, Mr. Goyal joined the travel business with
the GSA for Lebanese International Airlines. From 1967 to 1974, he underwent
extensive training in all facets of the travel business through his association
with several foreign airlines. He also travelled overseas extensively on
business during this period.
With the experience, expertise and technical know-how thereby acquired, in May
1974, Mr. Naresh Goyal founded Jetair (Private) Limited with the objective of
providing Sales and Marketing representation to foreign airlines in
In 1991, as part of the ongoing diversification of his business activities, Mr.
Goyal took advantage of the opening of the Indian economy and the enunciation
of the Open Skies Policy by the Government of India to set up Jet Airways for
the operation of scheduled air services on domestic sectors in
With his vast experience in the field of aviation, Mr. Goyal currently serves
on the prestigious International Air Transport Association (IATA) Board of
Governors for the year 2009-2010, having earlier served on the Board from 2008
– 2009 and 2004-2006.
Mr. Goyal is the recipient of several national and international awards,
including:
v
On November 16, 2011, in a unique honour,
v Re-elected to the prestigious IATA Board of Governors from 2011-2013
v On August 6, 2010, Mr. Goyal received the prestigious Lifetime Achievement Award by the Travel Agents Association of India (TAAI)
v
Voted “International Entrepreneurs of the Year”,
along with wife Anita Goyal, Executive Vice President- Revenue Management and
Network Planning, Jet Airways by the readers of Asian Voice, the highest
circulation newspaper among the Asian Community in the
v Honoured at the fourth edition of the prestigious CNBC TV18 India Business Leader Awards, in the ‘Taking India Abroad’ award category, at the Taj Lands End, Mumbai on January 22, 2009
v Accorded the Business Person of the Year award by UK Trade and Investment at the prestigious India Business Awards 2008, in Mumbai on September 9, 2008
v
Awarded the prestigious “Man of the Year Award”
by the Aviation Press Club (APC) at its 30th Anniversary on Wednesday, April
09, 2008, in
v
Conferred with the “Travel Entrepreneur of the
Year” award at the 19th annual TTG (Travel Trade Gazette) Travel Awards. The
awards were presented at a glittering ceremony and gala dinner on Thursday
October 25, 2007 at the Sofitel Centara Grand,
v
Accorded the prestigious TATA AIG – Lifetime
Achievement Award at the Abacus-TAFI Awards ceremony organized during the TAFI
(Travel Agents’ Federation of India) International Travel Convention 2007, on
Saturday September 8, 2007 at the Sutera Harbour Resort in Kota Kinabalu,
v
Was presented with the first NDTV Profit
Business Award 2006 by the honourable Prime Minister, Dr Manmohan Singh, on
behalf of Jet Airways, at a glittering function at Taj Palace Hotel on July 28,
2006. The award, in the aviation category, is to salute the men and women who
fuel
v
The first BML Munjal Award for Excellence in
Learning and Development in the Private Sector category. Mr Goyal received the
award from the Honourable Minister for Civil Aviation, Shri Praful Patel along
with a citation at a special function at Hotel Maurya Sheraton,
v
Featured by Business Week as one of the five
leaders from
v ‘Aerospace Laurels’ for outstanding contribution in the field of Commercial Air Transport twice, in April 2000 and February 2004
v First Lifetime Achievement Award from The Federation of Indian Chambers of Commerce and Industry (FICCI) in December 2003
v ‘Outstanding Asian-Indian’ award for leadership and contribution to the global community given by the Indian American Centre for Political Awareness in November 2003
v ‘Distinguished Alumni Award-2000’ for meritorious and distinguished performance as an Entrepreneur’ in October 2000
v ‘Entrepreneur of the Year Award for Services’ from Ernst and Young in September 2000
Mr. Ali Ghandour
Director
Mr. Ali Ghandour, a Jordanian national, has been a Director of the Company
since February 1998. Mr. Ghandour is a qualified aeronautical engineer from
Mr. Victoriano P. Dungca
Director
Mr. Victoriano P. Dungca, an American national, has been a Director of the Company
since January 1999. Mr. Dungca holds an MBA from
Mr. Javed Akhtar
Director
Mr. Javed Akhtar, an Indian national has been a Director of the Company since
March 1993. Mr. Akhtar holds a Bachelor of Arts degree. Mr. Akhtar is a
well-known poet, lyricist, screenplay and scriptwriter and is a famous media
personality. Mr. Akhtar has won the Filmfare Award Fifteen times, and is a
five-time National Award winner for the best lyricist.
Mr. Iftikar M. Kadri
Director
Mr. Iftikar M. Kadri, an Indian national, has been a Director of the Company
since February 2000. Mr. Kadri holds a Bachelors degree in Engineering from
Mr. Aman Mehta
Director
Mr. Aman Mehta, an Indian national, has been a Director of the Company since
September 2004. Mr. Mehta holds a Bachelors degree in Economics from
Mr. Yash Chopra
Director
Mr. Yash Chopra, an Indian national, has been appointed a Director of the
Company since April 2006. Mr. Chopra has had a distinguished career spanning
over five decades in the Indian film industry. His work has been recognized in
SENIOR MANAGEMENT:
Mr. Nikos Kardassis
Chief Executive
Officer
Mr. Kardassis, who was formerly the CEO of Jet Airways from 1994 to 1999 brings
with him a wealth of experience of both the Aviation industry and the financial
services.
Mr. Kardassis began his career with TWA, holding various finance and operational positions. He has over two decades of extensive leadership and business management experience. He joined Merrill Lynch from General Electric where he served as President for GECAT. Mr. Kardassis was also the Managing Director and Head of Business Development and Distribution for the Global Bank Group at Merrill Lynch.
In the past 18 months Mr. Kardassis has served as Senior Vice President, The
Americas for Jet Airways, and has been closely involved in the restructuring,
cost / network management of the airline and has been working as Senior Advisor
to the Chairman on both Finance and Strategy.
Capt. Hameed Ali
Chief Operating
Officer
Capt. Hameed Ali, a Bahraini national, joined Jet Airways in October 2007 as an
Executive Vice President – Operations and Engineering. He holds a degree in
Aeronautical Engineering from
Mr. Sudheer Raghavan
Chief Commercial
Officer
Mr. Sudheer Raghavan, a Singaporean national, joined Jet Airways in September
2007 as an Executive Vice President – Commercial. He holds a Bachelor of
Technology degree in Aeronautical Engineering from Indian Institute of
Technology,
Mrs. Anita Goyal
Executive Vice President – Network Planning and Revenue Management
Mrs. Anita Goyal, an Indian National, has over 25 years of experience in
Marketing and Sales and other functions in the Airline Industry. She holds a
Bachelor of Arts (Honours) degree with specialization in Political Science and
Sociology. She was associated with the Company since its inception. Her last
assignment was Executive Vice President-Marketing and Sales of the Company,
wherein she was in charge of the Company’s Marketing and Sales function. Her
achievements are reflected by the spectacular growth in the network and of the
operations of the Company and her contribution has helped the Company maintain
its 'Most Preferred Airline' status, due to the high quality of its product,
convenient flight timings and connections, the innovative customer loyalty
programme and various fare schemes. The many awards won by the Company in
Mr. Mahalingam Shivkumar
Senior Vice
President, Finance
Mr. Mahalingam Shivkumar joined the Jet Family in February
2009. He is a Commerce graduate from the
He was associated with Corporates like Cummins India Limited, Standard
Batteries Limited (Williamson Magor Group), Fortis Financial Services Limited
(Ranbaxy Group), Indian Hotels Company Limited (Taj Group). He held
various positions in the TAJ Group for over 9 years and was associated in the
Hotels, Air Catering, Aviation and International divisions. He had a successful
stint as Vice President, Finance in
Prior to joining Jet, he was the Finance Director for “Mumbai International
Airport Limited” and is familiar with Airport operations. At Jet, he is
entrusted with the responsibility of Managing and Controlling the overall
financial operations which inter alia include Treasury operations, Financial
and Cost controls etc.
Ms. Monica Chopra
Company Secretary and
Associate Legal Counsel
Ms. Monica Chopra, an Indian national, joined the Company in September 2008.
She is a Fellow Member of the Institute of Company Secretaries of India,
PRESS RELEASES:
JET AIRWAYS PARTNERS
WITH NOKIA LUMIA TO ENHANCE “THE AMAZING EVERYDAY” WITH THE ALL NEW INNOVATIVE
AIRPLANE WRAP
Jet Airways innovates
to allow brands to literally take to the skies as aircraft wraps – another
first from
‘Spot the Lumia’ and
be a part of the exciting ‘Sky Party’ on board the Nokia Lumia branded Jet
Airways aircraft
January 10, 2012
MUMBAI: Jet Airways,
In line with its history of unique firsts, Jet Airways –
Mr. Manish Dureja, Vice President, Marketing at Jet Airways further added, “The
aircraft wrap is like a flying billboard that allows you to take your brand to
the skies quite literally. All of us at Jet Airways are immensely proud and
happy to have innovated to create another opportunity for media buyers. We are
happy to partner with Nokia Lumia as our launch customer and are certain Nokia
will reach out to its target customers through this unique branding
opportunity. We are confident that this unique media vehicle will leverage the
power of innovative brand communication to a focused group of prospects and
will deliver value for money to brand managers across
Mr. Viral Oza, Director – Marketing, Nokia, said, “The Amazing Everyday Journey
has been designed to live and share the consumer’s everyday adventures. The
Nokia Lumia branded plane with Jet Airways will surely brighten the day of its
passengers with its vivid colours and execution. This has created a new
marketing and consumer engagement benchmark.” He added, “We have created some
amazing moments for our consumers since the launch of the Nokia Lumia range
through the Lumia Taxi, flash mobs, flash cricket and luxury helicopter rides,
and the Lumia aircraft will take the ‘amazing quotient’ of this campaign a
little higher”
Nokia also announced the ‘Spot the Lumia’ consumer competition. To participate,
consumers will have to spot the Nokia Lumia -- on the plane, or outdoor, at
Nokia retail or even on TV -- and upload the picture
onwww.facebook.com/nokiaindia. 50 consumers with the most innovative pictures
will get to attend the amazing Sky Party on January 20th. The Sky Party will be
a 2 hour extravaganza on board the Nokia Lumia Jet Airways flight with some
amazing experiences for consumers. The aircraft will take off from Mumbai and
will land back after the party.
The Nokia Lumia Jet Airways aircraft has already started its journey, as it
flies across destinations in
About Jet Airways
Jet Airways currently operates a fleet of 101 aircraft, which includes 10
Boeing 777-300 ER aircraft, 12 Airbus A330-200 aircraft, 59 next generation
Boeing 737-700/800/900 aircraft and 20 modern ATR 72-500 turboprop aircraft.
With an average fleet age of 5.73 years, the airline has one of the youngest
aircraft fleets in the world. Flights to 76 destinations span the length and
breadth of India and beyond, including Abu Dhabi, Bahrain, Bangkok, Brussels,
Colombo, Dammam, Dhaka, Doha, Dubai, Hong Kong, Jeddah, Johannesburg,
Kathmandu, Kuala Lumpur, Kuwait, London(Heathrow), Milan, Muscat, New York
(both JFK and Newark), Riyadh, Sharjah, Singapore and Toronto.
About Jet Airways Konnect
Jet Airways' Konnect service operates on key domestic routes, and is designed
to meet the needs of the low-fare segment with value-for-money fares. Jet Airways
Konnect links seven major metros - Mumbai,
About JetLite
JetLite is a subsidiary of Jet Airways India Limited and was acquired by Jet
Airways in April 2007. Positioned as an all-economy, no-frills airline, JetLite
operates a fleet of 18 Boeing 737 series aircrafts. The airline flies to 27
domestic destinations and 1 international destination (
Jet Airways, Jet Airways Konnect and JetLite have a combined fleet strength of
119 aircraft and operate over 620 flights daily.
Jet Airways’ ‘Edujetter Programme’ offers Students assured
benefits
June 20, 2012
Mumbai,
June 20, 2012: Jet Airways, India’s premier international airline, offers
students who have secured admissions to foreign universities and opted to study
abroad assured benefits, with its unique EduJetter programme for 2012-13.
Students flying out of India to select destinations on the airline network and
its codeshare partners can avail of excess baggage allowance.
Students on journey from India to UK and Europe, and beyond on interline
travel, can now enjoy excess baggage allowance of 23 kgs.
The programme includes an attractive EduJetter kit bundled with benefits such
as excess baggage allowances between thirty and sixty-nine kgs (depending on
the destination), 1000 bonus JP miles and upto Rs 2500 worth of international
talk time and data plans free from Matrix Communications as also a discount of
20% on Samsonite travel gear. With this offer, students may enjoy special
foreign exchange rates with ICICI travel card an offer from ICICI Lombard’s
Overseas Student Travel Insurance priced at a third of the cost of similar
insurance plans overseas.
The EduJetter kits available at the airlines local city offices will be
provided on presentation of valid student visa and Jet Airways ticket.
In order to provide convenience and comfort of travel, The EduJetter free
baggage allowance will be applicable on interline journeys right upto the final
destination with select partner airlines like American Airlines, Brussels
Airlines, British Midland, Delta Airlines and Qantas. The EduJetter Programme
will also be applicable on Jet Airways’ codeshare flights to select
destinations.
According to Mr. Sudheer Raghavan, Chief Commercial Officer, Jet Airways, “Jet
Airways has always focused on providing exceptional value to its guests by way
of special programmes and partnerships. This initiative is yet another step in
that direction offering student guests attractive benefits. Jet Airways’
EduJetter initiative is the airline’s way of encouraging every young student
from India travelling abroad, with assured benefits, tailored to suit their
specific needs, and make their travel experience as convenient and enjoyable as
possible. This is our endeavor to create an exceptional experience that will
result in creating a strong relationship based on value propositions and
reliability, with our young travellers”.
About
Jet Airways
Jet Airways currently operates a fleet of 103 aircraft, which includes 10
Boeing 777-300 ER aircraft, 12 Airbus A330-200 aircraft, 61 next generation
Boeing 737-700/800/900 aircraft and 20 modern ATR 72-500 turboprop aircraft.
With an average fleet age of 6.11 years, the airline has one of the youngest
aircraft fleets in the world. Flights to 76 destinations span the length and
breadth of India and beyond, including Abu Dhabi, Bahrain, Bangkok, Brussels,
Colombo, Dammam, Dhaka, Doha, Dubai, Hong Kong, Jeddah, Katmandu, Kuala Lumpur,
Kuwait, London(Heathrow), Milan, Muscat, New York (both JFK and Newark),
Riyadh, Sharjah, Singapore and Toronto.
About
JetKonnect
A consolidation of the erstwhile JetLite and Jet Airways Konnect brands, the
new JetKonnect service is a dedicated product designed to meet the needs of the
low fare segment. JetKonnect will also offer guests a Premiere service on
certain select routes. With its mixed fleet of Boeings and ATR aircraft and 400
daily flights connecting 56 destinations across India, JetKonnect provides more
flexibility and choice to its guests, making it India’s largest low fare brand.
JetKonnect’s convenient schedules, reliable service and low fares promise to
bring greater value and a seamless flying experience to our customers. Jet
Airways and JetKonnect have a combined fleet strength of 121 aircraft, and
operate over 620 flights daily.
24th
May, 2012
JET AIRWAYS REPORTS ITS RESULTS FOR QUARTER ENDING
MARCH 2012
Summary (Jet Airways and Jetlite
combined): Q4 FY 2012
Jet Group Q4 FY12 Total-Revenue
(combined) of INR 46,389 million (US $ 911.8 million) up by 24.3% Q4 FY12
passenger growth of 23.5% vs same period last year
EBITDAR of INR 4,124 million (USD
81.1 million) for Q4 FY12, EBITDAR margin 9.0%
FY 2012
Jet Group FY12 Total Revenue
(combined) of INR 168,980 million (US $ 3,321) million up by 14.8%
The total no of passengers carried
increased by 16.3% over the last year.
EBITDAR of INR 11,686 million (USD
229.7 million) for FY12, EBITDAR margin 7.0%.
Highlights for quarter ended
March 31. 2012 vs. March 31. 2011 - JET AIRWAYS STANDALONE
Operational
·
System-wide ASKMs
of 10,129 million, up 15.0%
·
System-wide RPKMs
of 8,403 million, up 22.4%
·
System wide
factor of 83.0% vs. 77.9%
·
4.82 million
revenue passengers carried, up 29.2%
Financial
·
Revenue of INR
40,927 million or US $ 804.5 million up by 24.4%
·
Fuel Cost of INR
18,225 million (USD 358.2 Million) for Q4 FY12 vs INR 12,797 million (USD 287.0
Million) for Q4 FY11 up 42.4%.
·
EBITDAR of INR
3,698 million or US $ 72.7 million in Q4 FY12 versus INR 3,775 million or US $
84.7 million in Q4 FY11.
·
EBITDAR Margin at
9.2% in Q4FY12
·
Loss before tax
INR 2,837 million or (US $ 55.8) million versus loss of INR 1,872 million or US
$ 42.0 million
·
Loss aftertax INR
2,981 million or (US $58.6) million versus loss of INR 1,245 million or US
$27.9 million
Highlights for the year ended
March 31. 2012 vs. March 31. 2011 - JET AIRWAYS STANDALONE
Operational
·
System-wide ASKMs
of 38,643 million, up 12.6%
·
System-wide RPKMs
of 30,643 million, up 13.6%
·
System wide seat
factor of 79.3% vs. 78.6%
·
17.31 million
revenue passengers carried, up 18.0%
Financial
·
Revenue of INR
149,941 million or US $ 2,947.2 million up by 15.9%
·
Fuel Cost INR
66,307 million (USD 1,303.3 Million) vs INR 43,667 million (USD 979.2 Million)
for FY11 up 51.8%
·
EBITDAR of INR
11,314 million or US $ 222.4 million in FY12 versus INR 25,365 million or US $
568.8 million in FY11
·
EBITDAR Margin at
7.6% in FY12
·
Loss before tax
INR 12,553 million or US $ 246.7 million versus Profit of INR 465 million or
(US $ 10.4) million
Highlights for the quarter ended
March 31. 2012 vs. March 31. 2011 - JETLITE
·
Achieved seat
factor of 78.4% in Q4 FY12 versus 77.1% in Q4 FY11
·
Revenue of INR
5,461 million or (US $ 107.3) million in Q4 FY12 versus INR 4,413 million (US $
99.0) million for Q4 FY'11.
·
Fuel cost INR
3,077 million (US $ 60.5) versus INR 2,437 million (US $ 54.6 ) million up by
26.3%
·
EBITDAR of INR
425 million or US $ 8.4 million in Q4 FY12 versus negative EBITDAR of INR 262
million or US $ 5.9 million in Q4 FY11
·
Loss before tax
INR 564 million or (US $ 11.1) million versus loss of INR 752 million or US $
16.9 million
·
Loss aftertax INR
564 million or (US $ 11.1) million versus loss of INR 757 million or US $ 17.0
million
Highlights for the year ended
March 31. 2012 vs. March 31. 2011 - JETLITE
·
Achieved seat
factor of 77.9% in FY12 versus 79.2% in FY11
·
Revenue of INR
19,039 million or (US $ 374.2) million, versus INR 17,862 million or (US $
400.5) million.
·
Fuel cost INR
11,457 million (US $ 225.2) versus INR 8,006 million (US $ 179.5) million up by
43.1%.
·
EBITDAR of INR
372 million or (US $ 7.3) million in FY12 versus EBITDAR of INR 2,293 million
(US $51.4) million in FY11
·
EBITDAR Margin at
2.0% in FY12
·
Loss before tax
INR 1,846 million or (US $ 36.3) million versus loss of INR 1,070 million or US
$ 24.0 million
·
Loss aftertax INR
1,840 million or (US $ 36.2) million versus loss of INR 1,075 million or US
$24.1 million
Management Discussion and
Analysis (for the quarter)
Operating results for the quarter
continued to be impacted due to Rupee Depreciation and high fuel cost
However, increase in fares and
strict cost control measures have helped Jet Airways post an operating profit
(EBITDAR) of INR 3,698 million for Q4FY12. Full impact of the increase in fares
would be seen in Q1FY13.
The impact of fuel price increase
for Jet Group as compared to the same period last year was INR 4,198 Million
(US$93.3)
Jet Group continues to maintain its
leadership position in the Indian aviation industry with the highest market
share of 29.3 % for the quarter ending March 2012.
Mr. Nikos Kardassis, Chief Executive
Officer, Jet Airways (I) Ltd said, "Rupee
depreciation and fuel prices has impacted the quarterly results, however
capacity reduction in the industry has helped to raise fares and improve
yields.
In this hour of rapid change in market dynamics, we
continue in our endeavor to enhance guest experience through unique marketing
initiatives and social media tools. As part of a strategic rebranding exercise,
Jet Airways, India's premier international airline, had consolidated its low
fare service products under the JetKonnect brand to simplify the group's
service proposition and enhance brand recall."
Highlights of Jet Airways Domestic
operations Q4 FY'12
Revenues from Domestic operations of
INR 17,930 million (USD 352.4 million) accounted for 43.8% of total revenues.
Domestic traffic for the Jet Airways group grew by 22.6 % for the quarter vs
same period last year. As against this, industry traffic grew by 6.6%.
Seat factors remained at around
77.1% for Q4 FY'12 versus 73.0% for Q4 FY'12. Capacity in terms of ASKM of
3,493 million in Q4FY12 went up by 19.9% versus Q4 FY11.
Highlights on International
operations Q4 FY'12
Revenues from International
operations of INR 22,997 million (USD 452.0 million) accounted for 56.2% of
total revenues. Achieved seat factor of 86.0% in Q4 FY12 versus 80.4% in Q4
FY11 The EBITDAR margins are at 12.6% in Q4FY12 versus 16.3% in Q4 FY11.
For the quarter, International
traffic grew by 26.3% for the quarter vs. same period last year.
Outlook
Capacity reduction in the industry
has helped the domestic airlines to increase fares and improve yields. The full
impact of the same would be felt in the current quarter. We have not seen any
adverse effect on the passenger traffic flow. Rupee depreciation and Crude Oil
prices continues to be a cause of concern. This coupled with sluggish economy
could impact traffic growth to some extend in the short to medium term as the
discretionary spending on travel could get affected.
We have taken various initiatives to
improve our operating efficiency and revenue earning potential. We believe that
the JetKonnect rebranding initiative will help us to enhance revenues. Other
initiatives such as enhancing ancillary revenues, discontinuing loss making
routes, sale of aircraft, restructuring commissions being paid to the agents
are few to be named. We believe that these initiatives will help us in medium
to long term.
Our International business continues
to be robust and we are achieving healthy seat factors. We are focusing on
network rationalization, selectively adding flights to profit making markets
such as Gulf & Middle East and ASEAN routes and discontinuation of loss
making routes.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records 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.55.37 |
|
|
1 |
Rs.85.95 |
|
Euro |
1 |
Rs.67.87 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
43 |
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 EXPLANATIONS
|
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 |
Capability to overcome financial difficulties seems comparatively below
average. |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.