Jet loses to gain
| Market share: April 2009 Kingfisher Airlines 26 % Jet Airways (combined) 24.1% (Source: DGCA, CAPA) Revenues Q3 loss of Kingfisher Airlines: 413.39 crore |
Even though Jet’s annual losses were Rs 961 crore, a Rs 53-crore profit in the last quarter has saved Goyal the ignominy of a Rs 1,000-crore loss for the year. By leasing out some of its aircraft, it has managed to keep high overhead costs off its books. It has reduced flights in the domestic market as well With an operating margin of 20.8 per cent and lower fuel costs expected in the coming year, things might just be looking up for Jet. Analysts, however, still have misgivings, not least because of Jet Konnect, Jet’s latest “low-cost” initiative which, they feel, will burden the brand.
The only solace for Jet: Kingfisher is in a bigger hole, with aircraft parked at airports all over India. Things are so bad that Mallya’s airline is yet to declare Q4 results.
—Kushan Mitra
