Dear Shareholders,
 
 In my letter to you last year, I had stated that we in Jet Airways were
 optimistic that there would be a significant improvement in the
 performance of the Company in 2010-11 and that the Management was
 implementing several marketing and operational measures to achieve
 this. I am glad to inform you that our efforts have been reasonably
 successful. The Company''s performance during the year under review, in
 terms of operational and financial parameters, has shown a marked
 improvement over the previous year.
 
 Despite the sharp increase in the price of Aviation Turbine Fuel (ATF)
 particularly during the fourth quarter of the financial year, the
 Company was successful in reporting a record profit before tax of
 Rs.466 million as against a pre-tax loss of Rs.4,676 million in the
 previous year. The Company achieved a seat factor of 78.6% on its
 system-wide operations and carried 14.7 million passengers on its
 services, which was 22% higher than in 2009-10. The Company achieved an
 EBITDAR of Rs.24.8 billion, 19% higher than the previous year.
 
 According to the Directorate General of Civil Aviation (DGCA), the
 Indian domestic traffic for the year continued to show an impressive
 growth rate of 21%, thereby expanding the available air traffic market
 base of the country. As in the previous year, the growth, however, has
 occurred largely in the lower end of the price range. As a result, the
 Company and industry have not been able to derive significant benefit
 in financial terms. However, a marginal increase in the average yields
 on the Indian domestic routes has led to a decrease in the break-even
 load / seat factors from 80% in 2009-10 to 78.6% in 2010-11.
 
 The Jet Group continues to maintain its leadership position in the
 Indian aviation industry, with an estimated market share of 25.4%
 during the year ended 31st March, 2011 (as per DGCA data).
 Additionally, the specific initiatives undertaken by the Company,
 coupled with improvements in infrastructural facilities and measures
 implemented by the Ministry of Civil Aviation in the area of air
 traffic control procedures, has enabled us to record a better on-time
 performance in our domestic operations at 88.4% vs. 76.6% in the
 previous year.
 
 Our international business continues to be robust. In 2010-11, revenues
 from international operations accounted for 57.2% of the Company''s
 total revenues. We have continued to achieve high seat factors on our
 international routes. The new routes that we introduced over the last
 couple of years - between Mumbai and Johannesburg and between Delhi and
 Milan have started gaining momentum and achieving load factors of
 around 70%. We have also added some new short-haul flights between
 India and the Gulf and Middle East, which have boosted our network
 traffic flows.
 
 The year under review also saw the fruition of several of the
 Government''s infrastructure facilities in support of the aviation
 industry – the best example being the opening of the new terminal - T3,
 in New Delhi. Green field airports in Hyderabad, Bengaluru and New
 Delhi and the on-going upgradation of terminals in Mumbai has been a
 turning point in the history of India''s civil aviation industry as for
 the first time, the country truly has been able to offer facilities
 comparable to the best in the world to passengers travelling to, from
 or transiting through, India.
 
 The availability of the modern upgraded facilities has enabled us to
 consciously promote the development and use of New Delhi and Mumbai
 airports as transit hubs connecting the western markets of Europe, UK
 and North America with points in SAARC region and East Asia. Mumbai and
 New Delhi are fast turning into efficient hubs for our domestic traffic
 as well. India now successfully competes as a transit hub with Dubai,
 Doha, Singapore, Bangkok and Kuala Lumpur, which are used by well-known
 international airlines.
 
 The Company has relentlessly continued its efforts to reduce costs and
 achieve greater efficiencies. As a result, we were able to reduce the
 cost per Available Seat Kilometers (excluding fuel) by 11.8%. This
 factors in the full year impact of the cost reduction and route
 rationalization measures implemented during the previous year. The
 Management of the Company is fully cognizant of the importance and
 essentiality of sustaining these efforts going forward, not merely
 because of the competitive pressures, but also to counter the
 inflationary trends and the continued volatility in fuel prices. While
 the industry has been trying to pass on the impact of the fuel price
 increases to customers by increasing fuel surcharges, we have to remain
 conscious of the resultant impact on market growth and price
 elasticity.
 
 Notwithstanding the impressive performance of the Indian domestic
 market and its impressive expansion during the year under review,
 internationally, the scenario of the aviation industry continues to be
 somewhat grim. This is because of the rapid increase and volatility in
 fuel prices in the first quarter of 2011 coupled with political
 upheavals in certain countries in the Gulf and Middle East, which are
 important oil producing countries. Exacerbating the problem is the
 extremely slow recovery in the United States and European economies.
 
 At the annual general meeting of the International Air Transport
 Association (IATA) held in Singapore last month, IATA further
 downgraded the airline industry profit forecast for 2011 to USD 4
 billion. This is a 54% reduction compared to the forecast in March 2011
 and a 78% drop compared to the industry profit recorded in 2010. IATA
 has attributed this reduction to the impact of natural disasters
 (namely the Japan earthquake and tsunami), the unrest in the Middle
 East and North Africa region and the sharp increase in oil prices.
 
 Since the Indian economy is expected to continue to achieve a high GDP
 growth of 8% to 9%, there is no reason to expect a slowdown in the
 growth of the Indian aviation market. We have therefore planned to
 induct six additional narrow body aircraft for deployment on the
 domestic and regional routes.  In a few months from now, we will also
 get back four of our B777-300ER aircraft on expiry of the dry lease
 agreements with Turkish Airlines. The Company has decided to lease out
 two of these aircraft to Thai International Airways. Following this, a
 total of five of the Companys B777-300 ERs will be on lease to Thai
 International Airways. We have decided to operate the remaining two
 B777-300ER aircraft returned by Turkish Airlines ourselves, thereby
 upgrading our services to Hong Kong and the US.
 
 I would like to take this opportunity to express my concerns regarding
 the heavy taxes that the Indian authorities continue to levy on ATF and
 the new / additional airport levies that have been introduced.  The
 authorities need to recognize that neither these additional costs can
 be passed on to the passengers as it will only dampen or stifle demand,
 nor can the airlines themselves absorb any of these costs due to their
 fragile financial conditions.
 
 To conclude, I would like to thank the 19 million passengers who flew
 with us and the shareholders who have continued to repose their faith
 in us. I am grateful to the aircraft lessors and the banks that have
 financed our aircraft and assisted us re-structure some of our aircraft
 leases and loans which have enabled us to reduce our costs. I also wish
 to thank every member of the management and staff of Jet Airways and
 Jet Lite for their loyalty, dedication and hard work in overcoming the
 adverse conditions that the Company is passing through.
 
                                                      Naresh Goyal 
 
                                                          Chairman