No difference of opinion with auditors, says Jet Airways CEO

The airline suffered second consecutive quarterly loss. It reported a net loss of Rs 1,323 crore for the first quarter of the financial year, pegged down by higher fuels costs and forex losses. Total income marginally improved to Rs 6,066 crore from Rs 5,953 crore a year ago.

Chief Financial Officer and Deputy CEO Amit Agarwal added that the company has got an additional equity of $300 million, which includes lease incentives and debt from Indian banks.

Though he didn’t disclose details of the lease incentives, Agarwal said that “large proportion” of the additional equity comes from lease incentives.

Asked if the lease incentives mean that the company has received money in advance and that it will be accounted in times to come, Agarwal replied in affirmation.

Like the company had said in a statement on Monday, Dube again noted that Jet Airways is looking to cut costs by Rs 2,000 crore over the next two years.

He added that the company’s equity partner Etihad Airways, which owns 24 percent stake in the Indian airline, “stands firmly with us,” in taking these corrective steps.

High costs

Dube highlighted that crude prices had increased by over 150 percent in the last two-and-a-half years. This had impacted the company’s financials. Fuel costs for the airline increased by nearly Rs 270 crore in the first quarter. Moreover, it suffered a forex loss of Rs 364 crore.

The airline had debts of Rs 8,620 crore as on June 30. It needs to make repayments of Rs 2,200 crore this year.

Much of the repayment capability will depend on how much the company is able to rationalise its costs and improve margins.