The Directors have pleasure in presenting their Twentieth Annual
Report together with the audited Statement of Accounts for the
financial year ended 31st March, 2012.
1. Performance highlights
The financial and operating highlights for the year under review,
compared with the previous financial year, are given below:
Financial highlights (Rs. in lakhs)
Standalone for year Consolidated for year
Particulars ended 31st March ended 31st March
2012 2011 2012 2011
GROSS REVENUE 1,517,308 1,293,227 1,706,704 1,470,606
Exceptional Items &
Tax 58,259 188,768 33,733 185,091
Finance Costs 97,123 111,971 100,579 118,415
(Loss) / Profit
Exceptional Items &
Tax (38,864) 76,797 (66,846) 66,676
Depreciation 93,988 91,062 94,462 91,857
(Loss) / Profit
Items & Tax (132,852) (14,265) (161,308) (25,181)
Exceptional Items 7,319 18,919 17,316 20,328
(Loss) / Profit
before Taxation &
Adjustments (125,533) 4,654 (143,992) (4,853)
Provision for Tax 1,440 322 1,384 368
Deferred Tax (3,363) 3,363 (3,363) 3,363
(Loss) / Profit
after Taxation (123,610) 969 (142,013) (8,584)
Profit / (Loss)
brought forward (71,939) (72,908) (172,734) (164,150)
Amount available for Appropriation (195,549) (71,939) (314,747)
Transfer to Balance Sheet (195,549) (71,939) (314,747) (172,734) Note:
1 lakh = 100,000
Operating parameters Year ended 31st March
Departures (Number) 175,646 146,876
Available Seat Kilometers (ASKMs) (Million) 38,643 34,323
Revenue Passenger Kilometers (RPKMs) (Million) 30,643 26,972
Passenger Load Factor (%) 79.3 78.6
Revenue Passengers (Number) 17,305,290 14,667,466
Average fleet size 98.0 90.0
The Board of Directors has not recommended any dividend on the Equity
Shares in view of the performance of the Company for the financial year
ended 31st March, 2012 (Previous year: Nil per Equity Share).
3. Review of Operations
The year under review has been a challenging one for your Company not
only because of the events around the world over which the Company has
little control but also because of severe overcapacity in the domestic
market in India.
The domestic overcapacity led to fare wars in the domestic business
with nearly all airlines selling seats below cost. This led to severe
losses for the Industry as a whole. For the year ended 31st March 2012,
the domestic airline industry is estimated to have lost over Rs.12,000
There were other major events across the world which impacted the
a) Slowdown in other economies which led to a drop in yields in
b) The weakening of the Indian Rupee vis-a-vis the United States Dollar
c) Increase in crude oil prices and resultant price of Aviation Turbine
Fuel, which forms close to 50% of our operating cost
d) General stress in the Indian economy which not only meant that
interest rates hardened but also made it difficult for airlines like
ourselves to raise short term/ working capital debt
Towards the second half of the financial year, things started giving
way and a major airline in India had to significantly reduce capacity
in the market. Also, airlines had no choice but to make fare increases
and there were two rounds of fare increases; one in November 2011 of
around 10% and another one in March 2012 of around 12%. This had very
little impact on the passenger traffic because of the capacity
reduction in the market, which also led to a steady increase in our
corporate and business class bookings.
The Company, on its part, has taken various initiatives to improve its
operating efficiency and revenue earning potential to bring down the
break even load factor.
Initiatives such as enhancing ancillary revenues, discontinuing loss
making routes, Sale/ Sale and lease back of aircraft, re-negotiation of
major contracts including, for aircraft maintenance, ground handling,
selling and distribution costs, etc., have been either implemented or
in the process of being implemented, which will bring down the break
even load factor.
The Company raised funds from the sale of development rights of its
lease hold property at Bandra-Kurla Complex, Mumbai and from the sale
and lease back of engines.
As part of its strategic re-branding exercise, your Company has
consolidated its low fare service products under the JetKonnect brand
to simplify the group''s service proposition and enhance brand recall.
Thus, effective 25th March, 2012, the erstwhile JetLite and Jet Airways
Konnect services have started operating under the JetKonnect brand,
enabling guests to avail of a single superior in-flight product in the
full service (Jet Airways) and low-fare (JetKonnect) categories. For
the financial year ended 31st March, 2012, our capacity on JetKonnect
services formed 64% of our overall domestic capacity in terms of number
of seats. 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.
For the financial year 2012, your Company has had the best On Time
Performance (OTP) and has reported an OTP of 91.1%, which was higher
than all other domestic carriers in India. Our vision and focus has
been to consistently be not only the biggest, but also the best in our
service to customers and in all our operational metrics vis-a-vis the
We are pleased to inform you that the benefits of these measures have
translated in the Company continuing to dominate the Indian domestic
skies with a market share of 26.1% during the year.
The Indian aviation market is one of the only markets in the world
which continues to grow at a healthy pace and it therefore presents an
enviable opportunity for companies like ours, to take advantage of the
strong franchise that we have created over the last few years.
The domestic traffic in India grew by 13% for fiscal year 2012 and over
the next few years, we 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, there will be short term challenges to grow
profitably because of high operating costs and overcapacity in both
domestic market as well as international traffic into and out of India.
During the year under review, domestic passenger traffic for the
Company, reported a 17.9% growth as compared to the same period last
year while international passenger traffic registered an increase of
The Company ended the financial year with a system-wide seat factor of
74.8% on the domestic and 81.6% on the international sectors.
The Company carried 173.05 lakhs revenue passengers on its
international and domestic services during the year under review, up
from 146.67 lakhs in the previous financial year.
The financial year 2012 was a year of consolidation and there were not
many new routes that the Company began operations on. The focus was
largely on building traffic flows between domestic and international as
well as international traffic flows over our key hubs at Mumbai and New
Delhi. The International business of the Company has now posted several
consecutive quarters of consistent growth in terms of seat factor of
above 80% and increase in the capacity in terms of ASKMs reflecting the
growing impact of our network synergies, major strategic international
code shares and customer centric product and service focus
The Company will take deliveries of 4 Airbus A330 - 300 aircraft this
financial, of which 2 will be replacements for lease expiries while the
other 2 will be deployed on long haul international routes. There are
various international route rights that your Company has applied for to
fly into European countries and the new aircraft capacity will be
deployed on some of these routes. Additionally, we will also free some
A330 aircraft capacity due to temporary suspension of our loss making
routes like Mumbai-Johannesburg in June 2012. These aircraft will be
redeployed on to other routes.
The details of the routes introduced and discontinued during the
financial year ended 31st March, 2012 are as follows:
Routes Introduced Discontinued
Aizawl-Guwahati-Aizawl 1st May, 2011
Aurangabad-Hyderabad-Aurangabad 30th October, 2011
Bengaluru-Vijayawada-Bengaluru 30th October, 2011
Bengaluru-Vijayawada-Bengaluru 14th December,
Delhi-Bagdogra-Guwahati-Delhi 30th June,
Delhi-Guwahati-Agartala-Delhi 1st July, 2011
Delhi-Guwahati-Bagdogra-Delhi 30th June,
Guwahati-Imphal-Guwahati 1st May, 2011
Guwahati-Jorhat-Guwahati 1st May, 2011
Guwahati-Silchar-Guwahati 1st May, 2011
Hyderabad-Bhubaneswar-Hyderabad 24th May, 2011
Hyderabad-Tirupati-Hyderabad 30th October,
Indore-Jaipur-Indore 23rd September, 2011
Indore-Jodhpur-Indore 30th October, 2011
Indore-Jodhpur-Indore 14th December,
Indore-Lucknow-Indore 15th October, 2011
Jaipur-Chandigarh-Jaipur 23rd September, 2011
Kolkatta-Aizawl-Kolkatta 1st May, 2011
Kolkatta-Dimapur-Kolkatta 16th November, 2011
Kolkatta-Nagpur-Kolkatta 30th October, 2011
Routes Introdued Discontinued
Kolkatta-Silchar-Kolkatta 1st May, 2011
Leh-Chandigarh-Leh 30th October, 2011
Lucknow-Patna-Lucknow 15th October, 2011
Madurai-Bengaluru-Madurai 30th October, 2011
Madurai-Bengaluru-Madurai 14th December, 2011
Raipur-Bhubaneswar-Raipur 23rd May, 2011
Raipur-Indore-Raipur 23rd September,2011
Mumbai-Bangkok-Mumbai 14th December, 2011
Mumbai-Riyadh-Mumbai 14th December, 2011
Thiruvananthapuram 30th October, 2011
Delhi-Dammam-Delhi 17th March, 2012
As on date, the Company had a fleet of 102 aircraft, comprising 10
Boeing 777-300 ER aircraft, 12 Airbus A330-200 aircraft, 60 Next
Generation Boeing 737-700/800/900/900ER aircraft and 20 modern ATR
72-500 Turboprop aircraft. With an average fleet age of 6.04 years,
the airline has one of the youngest aircraft fleets in the world.
Of the 10 B777-300ER aircraft, 5 aircraft have been sub-leased to Thai
Airways Public Company Limited (Thai Airways). The lease in respect
of these aircraft expires between May, 2013 and November, 2013.
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.
4. Management Discussion and Analysis
As required by Clause 49 of the Listing Agreement(s) entered into with
the Stock Exchanges, a detailed review by the Management of the
operations, performance and future outlook of the Company and its
business, is presented in a separate section - Management Discussion
and Analysis - forming part of this Annual Report.
5. Subsidiary Company
Jet Lite (India) Limited (''Jet Lite'') is a wholly owned subsidiary
which was acquired by the Company on 20th April, 2007.
Jet Lite is a non-material, non-listed subsidiary company as defined
under Clause 49 of the Listing Agreement(s) entered into with the Stock
Jet Lite follows the low-cost, no-frills business model. Effective 25th
March, 2012, the service offered under the JetLite brand was
re-christened as JetKonnect.
For the financial year ended 31st March, 2012, Jet Lite posted a total
income of Rs. 190,386 lakhs (2010-11 : Rs. 178,615 lakhs) and a Net Loss of
Rs. 18,403 lakhs (2010-11: Net Loss of Rs. 10,747 lakhs). 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 financial year
ended 31st March, 2012 (Previous Year : Nil). The Company continues to
support the operations of Jet Lite.
The highlights of the operating performance ofJet Lite for the
financial year ended 31st March, 2012 are as follows:
Traffic Parameters Year ended 31st March
Departures (Number) 41,992 39,003
Available Seat Kilometers (ASKMs) (Million) 5,829 5,481
Revenue Passenger Kilometers (RPKMs) 4,543 4,340
Passenger Load Factor (%) 77.9 79.2
Revenue Passengers (Number) 4,794,658 4,332,469
As on date, Jet Lite had an all Boeing fleet of 19 aircraft, comprising
9 Boeing 737-700, 8 Boeing 737-800 and 2 Boeing 737-900 ER aircraft.
The airline flies to 56 destinations across India and 1 international
destination - Nepal.
Pursuant to Circular No. 2/2011 dated 8th February, 2011, issued by the
Ministry of Corporate Affairs read with the provisions of Section
212(8) of the Companies Act, 1956, the Annual Report of Jet Lite, for
the financial year ended 31st March, 2012, is not annexed to this
Report. A summary of the financial performance of Jet Lite is given in
this Annual Report. The Company will make available copies of the
Annual Accounts of Jet Lite and the related detailed information, free
of cost to Members, on request. The same are also available for
inspection at the Registered Office between 10 a.m. and 12 noon on any
working day of the Company.
6. Consolidated Financial Statements
The audited Consolidated Accounts and Cash Flow Statement, comprising
Jet Airways (India) Limited and Jet Lite (India) Limited, appear in
this Report. The Auditors'' Report on the Consolidated Accounts is also
attached. The same is unqualified. The Consolidated Accounts have been
prepared in accordance with the Accounting Standards prescribed by the
Institute of Chartered Accountants of India in this regard and the
provisions of the Listing Agreement(s) entered into with the Stock
7. Conservation of energy, technology absorption and foreign exchange
earnings and outgo
Particulars, as prescribed by Section 217(1)(e) of the Companies Act,
1956, read with Companies (Disclosure of Particulars in the Report of
Board of Directors) Rules, 1988, in respect of conservation of energy,
technology absorption and foreign exchange earnings and outgo, to the
extent applicable to the Company, are given below:
Conservation of energy
The Company has embraced the best operational, technological and
maintenance practices and recommendations to reduce fuel burn. The
Company continues to modernize its fleet. The older aircraft are
regularly retired and replaced with the latest fuel efficient aircraft
thereby improving the overall fuel efficiency and mitigating unit
emissions. The Company continuously monitors the weight of various
catering, cabin and galley items. The weight reduction program
contributes to significant savings in fuel burn.
Through in-house subject matter expertise, the Company has developed
Integrated Emissions Management System (IEMS) for monitoring and
optimizing the use of Aviation Turbine Fuel.
The Company has commenced assessment of the carbon footprint of its
activities for both direct and indirect emissions. The carbon foot
printing is being done as per the internationally accepted Greenhouse
Gas Protocol Standard developed jointly by World Resources Institute
(WRI) and World Business Council for Sustainable Development (WBCSD).
The footprint mapping and reporting exercise is in line with the ISO
Technology absorption Training of Pilots
Jet Airways Flight Operations Training School (''the School'') is
approved by the Directorate General of Civil Aviation to function as
Type Rating Training Organization. It provides Pilots'' Training, Cabin
Crew Training as well as Security Training all under one roof.
It has introduced e-learning for pilots and flight despatchers
resulting in cost saving and value addition. It has also conducted
special operational courses for Non-scheduled Airline Operators,
thereby generating revenue.
Information Technology and e-Commerce initiatives
The Company makes strategic use of the latest technology to interact
with passengers at a global level. Its significant presence on social
media platforms like Facebook, Twitter, LinkedIn, YouTube, Flickr and
Foursquare ensures increase in awareness and reach of the Company''s
brand. The Company''s growth on the social media networking platform has
been noteworthy registering an exponential increase in the number of
followers and fans on Twitter and Facebook.
In the coming year, the Company aims to introduce state-of-the-art
mobile applications for Android, iPhone, BlackBerry and Windows mobile
phones. These applications will provide passengers with a convenient
and seamless option to book tickets, check-in, access their
JetPrivilege account etc. using their mobile phones.
Additionally, the Company intends to commence the use of 2D Mobile
Bar-coded boarding passes for guests who have checked-in for their
flights, thus providing a paperless travel experience.
Foreign Exchange earnings and outgo
The details of Foreign Exchange earnings and outgo are given under the
Notes to Accounts.
8. Environment, Health and Safety (EHS)
The Company consciously strives to keep up the good environment, health
and safety performance delivered in earlier years. There has been
tremendous progress in the areas of process safety and the Safety
Management System (SMS) implementation is well underway.
To ensure continued focus of EHS activities, various improvement plans
for better pollution control, provision of medical facilities,
conducting mock drills for increased safety awareness and preparedness
for any eventuality, were implemented during the year under review.
9. Fixed Deposits
The Company has not accepted any Fixed Deposits from the public during
the financial year ended 31st March, 2012.
10. Corporate Governance
We adhere to the principles of Corporate Governance mandated by the
Securities and Exchange Board of India and have complied with all the
mandatory requirements. The non-mandatory requirements have been
complied with to the extent practical and applicable.
A separate section on Corporate Governance and a certificate from the
Auditors confirming compliance with the Corporate Governance
requirements as stipulated in Clause 49 of the Listing Agreement(s)
entered into with the Stock Exchanges, form part of this Annual Report.
The Chief Executive Officer''s declaration regarding compliance with the
Code of Business Conduct and Ethics forms part of the Report on
11. Corporate Social Responsibility
Since 1997, the Company has been running an in-flight collection
programme called ''Magic Box'' on its domestic flights. The collections
help finance the numerous projects run by Save The Children India which
include pre-schools for the urban slum children and a special care
centre for the mentally challenged and hearing impaired.
As every year, on the occasion of Children''s day, the Company organised
Flights of Fantasy for approximately 100 underprivileged children
giving them a chance to experience the world of aviation, which is both
an informative and educational experience.
To support Non Government Organisations working primarily for the
up-liftment and empowerment of underprivileged women, the Company
organized an in-flight fund raising drive on the occasion of
International Women''s Day.
The Company celebrated the Joy Of Giving Week 2011 by inviting 180
underprivileged tribal children for an educational trip to its hangar.
Your Directors particularly acknowledge the selfless untiring efforts,
whole-hearted support and co-operation of the employees at all levels.
Our industrial relations continue to be cordial.
The total number of permanent employees of the Company as on 31st
March, 2012, was 12,849 (as on 31st March, 2011: 12,811).
Information in accordance with the provisions of Section 217(2A) of the
Companies Act, 1956, read with Companies (Particulars of Employees)
Rules, 1975, as amended, forms part of this Annual Report. However, as
per the provisions of Section 219(1)(b)(iv) of the Companies Act, 1956,
this Report and Accounts are being sent to all the Members of the
Company, excluding the Statement of Particulars of Employees under
Section 217(2A) of the Companies Act, 1956. Members may inspect the
said Statement at the Registered Office of the Company between 10 a.m.
and 12 noon on any working day of the Company.
13. Directors'' Responsibility Statement
As required under Section 217(2AA) of the Companies Act, 1956, your
Directors confirm that:
- in the preparation of the Annual Accounts, the applicable accounting
standards have been followed;
- appropriate accounting policies have been selected and applied
consistently and such judgments and estimates have been made that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company as at 31st March, 2012 and of the loss of the
Company for the year ended on that date;
- proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
- the Annual Accounts have been prepared on a going concern basis.
Mr. Saroj K. Datta ceased to be a Director of the Company with effect
from 30th September, 2011, consequent to the completion of his tenure
as the Executive Director of the Company. Mr. Datta was the Executive
Director of the Company since March 1993. As such, he was instrumental
in spearheading the Company''s emergence as one of the country''s
foremost global service brands and a premier international airline to
emerge from India. The Board of Directors places on record its
gratitude to Mr. Datta for his loyal and dedicated contribution to the
The Board of Directors appointed Mr. Gaurang Shetty as an Additional
Director with effect from 24th May, 2012. As per the provisions of
Section 260 of the Companies Act, 1956, he holds office up to the date
of the forthcoming Annual General Meeting. The Company has received a
notice under Section 257 of the Companies Act, 1956, from a Member
proposing the appointment of Mr. Shetty as a Director of the Company.
Subject to the approval of the Members, the Board of Directors also
appointed Mr. Shetty as the Manager for a period of three years with
effect from 24th May, 2012.
Mr. Ali Ghandour and Mr. Yash Raj Chopra retire by rotation at the
forthcoming Annual General Meeting and being eligible, have offered
themselves for re-appointment.
The appointment of Mr. Shetty and the re-appointments of Mr. Ghandour
and Mr. Chopra form part of the Notice of the forthcoming Annual
General Meeting and the Resolutions are recommended for your approval.
The profiles of these Directors, as required by Clause 49 of the
Listing Agreement(s) entered into with the Stock Exchanges, are given
along with the said Notice.
The Statutory Auditors, Deloitte Haskins & Sells, Chartered
Accountants, and Chaturvedi & Shah, Chartered Accountants, retire at
the forthcoming Annual General Meeting and have confirmed their
eligibility and willingness to accept office, if re-appointed. Their
re-appointment as the Joint Statutory Auditors for the financial year
2012-13, forms part of the Notice of the said Annual General Meeting
and the Resolution is recommended for your approval.
Your Directors place on record their appreciation of the Company''s
General Sales Agents'' and other members of the travel trade for their
efforts in furthering the interest of the Company.
Your Directors also take this opportunity to thank the Ministry of
Civil Aviation, Government of India, the Directorate General of Civil
Aviation, Airports Authority of India, Mumbai International Airport
(Private) Limited, Delhi International Airport (Private) Limited, GMR
Hyderabad International Airport Limited, Bangalore International
Airport Limited, Cochin International Airport Limited and other airport
companies for their support and co-operation. Your Directors are also
grateful to the Ministry of Finance, Reserve Bank of India, National
Stock Exchange of India Limited, BSE Limited, US Exim Bank, Financial
Institutions and Banks, Boeing Company, Avion de Transport Regionale,
Airbus Industrie, General Electric, CFM and Pratt and Whitney and the
lessors of our aircraft and engines for their understanding and look
forward to their continued support.
On behalf of the Board of Directors
Mumbai Naresh Goyal
24th May, 2012 Chairman