Dear Shareholders,
 
 The last year has been a particularly challenging one for the global
 airline industry, owing to the prolonged economic crisis that has
 transformed corporate landscapes, the world over. Indian aviation
 companies too have not been spared from the impact of the global crisis
 and as a result, most have been suffering losses.
 
 At a recently held IATA conference, the sentiment expressed by the
 airline industry worldwide was one of uncertainty for the immediate
 future. This is predominantly due to the ongoing Eurozone debt crisis
 and a slower than expected economic recovery from the US. Adding to the
 global woes is the distinct slowdown of the Indian and Chinese
 economies. It has been aptly said that the global airline industry''s
 profitability is now precariously balancing on a ''knife''s edge''.
 
 the Indian aviation sector is facing a similar dilemma. On one hand is
 the sharply depreciating rupee vis- a-vis the dollar, while on the
 other; airlines have had to contend with escalating Aviation Turbine
 Fuel (ATF) prices, rising infrastructure costs and high taxes imposed
 on the sector. These factors have resulted in challenging market
 dynamics. Admittedly, there has been an improvement in infrastructure
 by way of new terminal buildings. However, the imposed levies and
 charges have resulted in a sharp increase in operational costs.
 Further, while there has been an improvement in yields over the past
 six months following a marginal increase in fares, this could get
 negated by a lower volume growth due to the overall slowdown in the
 economy and a depreciating currency.
 
 Recent studies based on IATA''s Passenger data reveal that on average,
 domestic net air fares in India were the lowest compared to major world
 aviation markets. As an Example, the average domestic air travel above
 2,000 kms was higher by 87 per cent in China, 119 per cent in USA, 162
 per cent in Canada and 182 per cent in Australia compared to India.
 
 In difficult circumstances, as is prudent with any commercial
 enterprise, your airline undertook stringent fiscal control measures
 and looked at several non-payroll areas to minimise costs. These
 included contract re-negotiations, process improvements, increasing
 ancillary revenues, discontinuing loss making routes, restructuring
 agent commissions and sale and lease back of some of the aircraft to
 repay dues. These measures will help your airline over the medium to
 long-term. It is this fiscal prudence, coupled with some truly unique
 marketing initiatives such as increased customer touch points through
 social media tools and a strategic rebranding exercise that has helped
 your airline to keep flying through stormy skies.
 
 Early last year, the Jet Airways Group created history in the Indian
 aviation industry by flying a record 2 million guests in the month of
 May 2011. This marked the highest number of passengers carried by any
 airline of Indian origin on its domestic and international network in a
 month.
 
 As you would be aware, the year saw Jet Airways consolidate its low
 fare service products, namely JetLite and Jet Airways Konnect under the
 JetKonnect brand to simplify the group''s service proposition and
 enhance brand recall. We are delighted with the strong guest response
 received with the launch of JetKonnect, which is now our dedicated
 low-fare service. Recently we also extended our Premiere service to
 certain JetKonnect flights in a step towards product harmonization of
 the JetKonnect brand, and in keeping with the increasing demand from
 our guests for premium services on select routes.
 
 This along with the redeployment of aircraft to more profitable routes
 has helped the Jet Airways Group consolidate its leadership position in
 the Indian aviation industry with a market share of 29.3 per cent for
 the year ended 31st March, 2012. This is testimony that our continued
 focus on delivering customer delight has paid dividends, despite the
 existing market challenges. Domestic revenues have been driven by a
 steady growth in air traffic from Tier II and III cities and towns,
 which your airline has been able to seamlessly connect through its hub
 and spoke concept. The airline has consciously promoted the development
 of Delhi and Mumbai airports as transit hubs, connecting the western
 markets of Europe, UK and North America with points in the SAARC region
 and East Asia. Jet Airways also continues to explore all avenues of
 enhancing its business through alliances and code share agreements. We
 also constantly review systems and processes to improve productivity
 across the board.
 
 Our international business continues to be robust. In financial year
 2011-12, revenues from international operations accounted for 58 per
 cent of the company''s total revenues. We have achieved high seat
 factors on our international routes. In view of the current global
 economic conditions and its impact on business worldwide, Jet Airways
 is redeploying its assets with a clear focus on profitability. As part
 of our drive to rationalise routes and replace loss making ones with
 profitable destinations, your airline recently enhanced connectivity
 for business and leisure travelers on the India - Gulf sector.
 
 Jet Airways'' Gulf network now operates 44 daily flights between India
 and the Middle East, including Abu Dhabi, Bahrain, Dubai, Doha, Kuwait,
 Muscat and Sharjah, as well as Jeddah, Riyadh and Dammam from several
 cities in India. This has helped establish Jet Airways as a prestigious
 brand in the intensely competitive Indo-Gulf market in a relatively
 short period of time. Your airline flies to 22 international
 destinations, including Abu Dhabi, Bahrain, Bangkok, Brussels, Colombo,
 Dammam, Dhaka, Doha, Dubai, Hong Kong, Jeddah, Kathmandu, Kuala Lumpur,
 Kuwait, London (Heathrow), Milan, Muscat, New York (both JFK and
 Newark), Riyadh, Sharjah, Singapore and Toronto.
 
 In an effort to actively reach out to a larger cross section of guests
 and engage with them on a real time basis, your airline has started
 utilising social media platforms like Facebook, Twitter, Foursquare and
 LinkedIn. Your airline today has emerged as the first Indian airline to
 have over seven lakh fans on Facebook and utilises these social media
 channels to provide guests with real-time news updates about flight
 schedules, new customer programmes, route additions, services and other
 special offers, besides providing an online forum to share experiences
 and feedback.
 
 Jet Airways'' management team and employees have rallied through
 difficult challenges and understand that success almost never happens
 by chance, but is based on hard work, dedication, commitment and
 adherence to a collective vision. We have realised that with relentless
 focus and determination, we can overcome difficult times. The team has
 demonstrated that it is not scared of taking tough decisions. As a
 result, your airline has grown towards building a stronger and more
 resilient framework for the future.
 
 I sincerely appreciate the Ministry of Civil Aviation''s efforts for
 taking up with the Government of India, the cause of the industry,
 especially with respect to ATF imports, rationalisation of service tax,
 lowering of ATF taxes as well as understanding the critical role of
 private Indian carriers in the development of the aviation sector. A
 direct corollary to this has been the opening up of more international
 routes for private carriers, allowing the import of ATF and focusing on
 infrastructure development.
 
 Thanks to the support of the Ministry of Civil Aviation, your airline
 has been recently granted additional rights to several important, new
 European destinations and is in the process of evaluating opportunities
 in emerging growth markets. Jet Airways is extremely keen to not only
 deploy additional frequencies in growth markets, but also grow some of
 its operating hubs into global aviation hubs for increased
 international traffic.
 
 The on going domestic capacity reduction in the Industry will help
 align demand with the capacity and help airlines to rationalize fares
 and strengthen yields. The impact of this, however, would only be
 realised in financial year 2012-13. Further, aviation in India is only
 set to grow, given that currently only a miniscule percentage of
 Indians use this efficient and time saving travel option. In an
 emerging economy like India, where the need for connectivity is
 critical to facilitate the growth of trade and travel, one can only be
 optimistic about the future.
 
 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 recognise that these additional costs, if passed on
 to passengers will only dampen or stifle demand as the airlines
 themselves cannot absorb any of these further costs due to their
 fragile financial conditions.
 
 For the industry to recover from its current travails and achieve
 long-term self- sustaining growth, there is a need to address problems
 created by high input costs and an unsustainable fare regime. I
 strongly urge the Government of India, the airlines industry and all
 other stake holders to join hands and collectively work together to
 nurse this vital industry back to health.
 
 To conclude, I would like to thank 22.10 million passengers who have
 flown with us during the year ended 31st March, 2012 and shareholders
 who have continued to repose their faith in us. I am grateful to the
 aircraft lessors and banks that have financed our aircraft and assisted
 in re-structuring some of the aircraft leases and loans to reduce
 costs. I also wish to thank every member of the management and staff of
 Jet Airways for their loyalty, dedication and hard work in overcoming
 the adverse conditions that the company is passing through.
 
                                                          Naresh Goyal
 
                                                              Chairman