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Jet Air king of good times, stock up 3%

Published on Fri, Jun 24, 2011 at 09:29 | Source : Moneycontrol.com

Updated at Fri, Jun 24, 2011 at 15:08

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Shaheen Mansuri

Jet Airways , the country's largest private airline by passengers carried has reported a highest on-time performance (OTP) in the domestic aviation space at 91.8% in May followed by its arch-rival Kingfisher Airlines which has reported a 90.2% OTP. Flag carrier Air India has had a 68.66% OTP. All these airlines are categoried as full service carriers.

The Directorate General of Civil Aviation (DGCA) has established an agreement with major carriers to report on-time performance statistics each month. The purpose of collecting this information is to monitor overall industry and individual airline performance on punctuality. It is also to allow consumers of air travel to make informed decisions when planning air travel.

Nikos Kardassis, chief executive officer at Jet had previously said, "Our company wide initiative " Right on time - Every time", has helped us to achieve the best on-time performance amongst all domestic schedule carriers. A distinct customer centric focus with multiple products to suit the unique needs of our guests, coupled with innovative marketing have given Jet the requisite growth thrust to stay ahead of competition."

He had further said that the airline's ability to expand market share in a highly competitive market augurs well for the future as it clearly reveals that Jet is fast emerging as the airline of choice from and to the Indian subcontinent.

However, due to soaring fuel costs, Jet had posted a consolidated net loss of Rs 200 crore for the fourth quarter ended March 31, 2011. In the corresponding quarter of the previous year, Jet Airways had a consolidated net profit of Rs 225 crore. The company had consolidated revenues of Rs 3,656 crore for the quarter under review, a growth of 14.8%.

The company had in a statement said that fuel cost was 39% of their total costs as against 32 % during Q4 FY 2010. During the period, there was an unprecedented increase in prices of fuel, which airlines were not able to pass on to the customer fully. Though airlines did take increases in fuel surcharges, the full impact of the same will come through only in the next quarter.

Jet Airways' stock is being traded at Rs 415, up 3% on the Bombay Stock Exchange (BSE).

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