Financially troubled airline tries to restructure its fleet to cut the costs
Mumbai - The financially troubled Jet Airways cuts the costs. The airline keeps its eight aircraft on the ground for a while, and at least fifteen high-level managers had to leave this month.
The grounded airplanes are two Airbus A330, one Boeing 777, two Boeing 737 and three ATR. The engines of these aircraft have been disassembled as they are expected to remain on the ground for six months or longer. Jet Airways has a total of 124 aircraft in its fleet.
Jet Airways does not deny that the aircraft are being grounded but says that it is part of a continuous fleet evaluation. The company did not comment on dismissals.
Jet Airways recorded a loss of 185 million USD in the second quarter, due to rising fuel prices, high salary costs and fierce competition in the low-cost market. The passenger transportation capacity in Indian civil aviation market has increased so much that the margins are now very low.
To get its business back on track, Jet Airways has been restructuring for some time. For instance, the company is working on a sale or leaseback formula for some of its aircraft, cutting salary costs, and obtaining new funds from third parties.
Jet Airways is the second-largest airline operator in India after IndiGo flying to 69 destinations in 17 countries. The company started its operations as an air taxi operator in 1993 and converted to scheduled line operations in 1995. Jet Airways expanded its network by adding international routes in 2004.