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The Indian Aviation Industry has been going through a turbulent phase over the past several
years facing multiple headwinds high oil prices and limited pricing power contributed by
industry wide over capacity and periods of subdued demand growth. Over the near term the
challenges facing the airline operators are related to high debt burden and liquidity
constraints - most operators need significant equity infusion to effect a meaningful
improvement in balance sheet. Improved financial profile would also allow these players to
focus on steps to improve long term viability and brand building through differentiated
customer service. Over the long term the operators need to focus on improving cost structure,
through rationalization at all levels including mix of fleet and routes, aimed at cost efficiency.
At the industry level, long term viability also requires return of pricing power through better
alignment of capacity to the underlying demand growth. While in the beginning of 2008-09,
the sector was impacted by sharp rise in crude oil prices, it was the decline in passenger
traffic growth which led to severe underperformance during H2, 2008-09 to H1 2009-10. The
operating environment improved for a brief period in 2010-11 on back of recovery in
passenger traffic, industry-wide capacity discipline and relatively stable fuel prices. However,
elevated fuel prices over the last three quarters coupled with intense competition and
unfavourable foreign exchange environment has again deteriorated the financial performance
of airlines. During this period, while the passenger traffic growth has been steady (averaging
14% in 9m 2011-12), intense competition has impacted yields and forced airlines back into
losses in an inflated cost base scenario. To address the concerns surrounding the operating
viability of Indian carriers, the Government on its part has recently initiated a series of
measures including
Proposal to allow foreign carriers to make strategic investments (up to 49% stake) in
Indian Carriers
Proposal to allow airlines to directly import ATF
Lifting the freeze on international expansions of private airlines
Financial assistance to the national carrier.
However, these steps alone may not be adequate to address the fundamental problems
affecting the industry.
While the domestic airlines have not been able to attract foreign investors (up to 49% FDI is
allowed, though foreign airlines are currently not allowed any stake, foreign airlines may be
interested in taking strategic stakes due to their deeper business understanding, longer
investment horizons and overall longer term commitment towards the global aviation
industry. Healthy passenger traffic growth on account of favourable demographics, rising
disposable incomes and low air travel penetration could attract long-term strategic
investments in the sector. However, in our opinion, there are two key challenges:
Aviation economics is currently not favourable in India resulting in weak financial
performance of airlines
Internationally, too airlines are going through period of stress which could possibly
dissuade their investment plans in newer markets.

Besides, foreign carriers already enjoy significant market share of profitable international
routes and have a wide access to the Indian market through code-sharing arrangements with
domestic players. Given these considerations, we believe, foreign airlines are likely to be
more cautious in their investment decisions and strategies are likely to be long drawn rather
than focused on short-term valuations. On the proposal to allow import of ATF, we feel that
the duty differential between sales tax (averaging around 22-26% for domestic fuel uplifts)
being currently paid by airlines on domestic routes and import duty (8.5%-10.0%) is an
attractive proposition for airlines. However the challenges in importing, storing and
transporting jet fuel will be a considerable roadblock for airlines due to OMCs monopoly on
infrastructure at most Indian airports. From the working capital standpoint too, airlines will
need to deploy significant amount of resources in sourcing fuel which may not be easy given
the stretched balance sheets and tight liquidity profile of most airlines.
India is expected to become the fourth biggest market in terms of value for all new aircraft
deliveries during the next 20 years, according to aircraft maker Airbus. Therefore, the
aviation sector in India is becoming highly promising. Further, the liberalisation of the sector
in the mid-nineties has resulted in a remarkable growth as a large number of private service
airlines entered the sector. A massive boom in the tourism industry and increasing levels of
disposable incomes have given an intense impetus to the Indian Aviation industry; the major
contributor being civil aviation. Strong government support and private participation, coupled
with the availability of skilled manpower, and favourable business environment have
positioned India as an attractive investment destination on the world map.
Meanwhile, India has released its first ever detailed Aviation Carbon Footprint Report for
2011, which states that CO2 emissions from Indian scheduled airline operations as well as
from foreign airlines to international destinations represent less than 1 per cent of the
country's total CO2 emissions, which is significantly lower than the global average
contribution of airlines.
Delhi's Indira Gandhi International (IGI) Airport has been ranked the second-best airport in
the world for 2011 by the Airports Council International. The airport scored this distinction in
the category of airports with 25-40 million passengers per annum. Last year, it had been
ranked fourth in the same category.

India is the ninth largest aviation market in the world, according to RNCOS research report,
titled "Indian Aerospace Industry Analysis". It is anticipated that the civil aviation market
will register more than 16 per cent compound annual growth rate (CAGR) during 2010-2013
on back of strong market fundamentals.
The rapidly expanding aviation sector in India handles about 2.5 billion passengers across the
world in a year; moves 45 million tonnes (MT) of cargo through 920 airlines, using 4,200
airports and deploying 27,000 aircraft. Currently, 87 foreign airlines fly to and from India and
five Indian carriers fly to and fro from 40 countries. India is expected to be amongst the top
five nations in the world in the next 10 years. An efficient civil aviation sector is important
for India as it is inter-linked with other sectors in the economy and generates income and
employment through global commerce and tourism, as per a National Council of Applied
Economic Research (NCAER) study titled 'Emirates in India - Assessment of Economic
Impact and Regional Benefits'.
Airport infrastructure in India is witnessing improvisation and expansion on a massive scale,
with the Government avidly supporting private participants. The need for airport
infrastructure in India has increased considerably. In order to ramp up airport infrastructure,
the Government has unveiled reforms to facilitate investment in this segment. The investment
in Indian airport infrastructure market, especially in the Greenfield projects is expected to

Market Size
The domestic airlines carried 43.84 million passengers during January -September 2012 (first
three quarters of calendar year), according to data released by the Directorate General Civil
Aviation (DGCA).
The air transport (including air freight) in India has attracted foreign direct investment (FDI)
worth US$ 446 million from April 2000 to September 2012, as per data released by
Department of Industrial Policy and Promotion (DIPP).
Aerospace on a High
India and New Zealand have signed the "Arrangement for Cooperation on Civil
Aviation". Under the arrangement, the two countries will promote and support the
development of training and technical cooperation in the field of civil aviation
GVK Power and Infrastructure Ltd has signed an operations and management contract
with the Airports Authority of Indonesia (Angkasa Pura Airports). The scope of the
contract includes managing non-aeronautical commercial operations at both the
existing terminals and the new international terminal of Indonesia's second busiest
Bali (Denpasar) international airport
Maldivian Airlines has expanded its flight network by connecting Chennai, Mumbai
and Dhaka with Male, the capital city of Maldives. "India is our focus market, as it
has a great potential," said Mr Sandhu Ibrahim Salem, Chairman, Maldivian Airlines
India will be the fourth biggest market in terms of value for all new aircraft deliveries
after China, the US and the UAE during the next 20 years, according to aircraft maker
Spice Jet Ltd has announced the launch of two new international flights from Kochi,
Kerala to Male and Dubai. The airline has deployed the Bombardier Q400 aircraft,
with a capacity of 78 passengers, in the Kochi-Male route
IBS Software has entered into a contract with Lufthansa Cargo AG for the
implementation of its air cargo solution - iCargo. The deal worth Rs 700 crore (US$
127.50 million) has three segments and IBS Software has major share of the contract

Road Ahead
The Indian aviation industry is exploring opportunities to improve connectivity and is also
looking at enhancing the number of Indian carriers to various countries. Rise in per capita
income is making air travel more affordable for Indian travelers, as per RNCOS' research
report "India Airports Market Assessment". It is anticipated that by FY 2015, Indian airports
(including domestic and international) will handle close to 256 million passengers. India's
fast growing tourism industry has added impetus to the market and has also improvised on
airport industry's positive future outlook.
"A significant potential lies for the Indian airports to become transshipment hubs," as per a
KPMG report. Buoyed by the success of implementation of public-private partnership (PPP)
model in airport development, the Government of India plans to invest more on expansion of
existing airports, by means of modernization.

Growth in the Sector
Recording the strongest growth in the world, India's domestic aviation market has tripled in
the past five years, according to a latest report of the International Air Transport Association
(IATA). India posted a strong domestic growth at 25.6 per cent in the aviation sector, and
continuing its trend of high-speed growth for a robust market.
India is the 9th largest aviation market in the world as per a report, Indian Aerospace Industry
Analysis, published by research firm RNCOS. The Indian Aviation sector grew around 13.6
per cent year-on-year in FY 2010, which was amongst the highest globally. Further, the
government's open sky policy has attracted many overseas players to enter the market and the
industry is growing in terms of both players and the number of aircrafts. On the basis of
strong market fundamentals, it is anticipated that the civil aviation market will register more
than 16 per cent CAGR during 2010-2013.
Further, aircraft maintenance, repair and overhaul (MRO) sector is also on a growth path in
the country. The sector holds a lot of opportunities for companies within the technical
services outsourcing business domain.
The rapidly expanding aviation sector handles 2.5 billion passengers across the world in a
year; moves 45 million tonnes of cargo through 920 airlines, using 4,200 airports and deploys
27,000 aircraft. Today, 87 foreign airlines fly to and from India and five Indian carriers fly to
and from 40 countries.
Passengers carried by domestic airlines during Jan-Sep 2012 (first three quarters of calendar
year) were 438.39 lakhs, according to the latest data released by the Directorate General of
Civil Aviation (DGCA).
The countrys private carriers are expected to post a combined profit of US$ 350 million
US$ 400 million for the financial year ending March 31, 2012, as per a report released by the
Centre for Aviation and Airports Authority of India (CAPA India). CAPA India expects
domestic traffic growth of 17-18 per cent, possibly as high as 20 per cent. International
passenger numbers, which grew by about 10 per cent last year, are expected to increase
towards the upper end of a 10-12 per cent range over the next 12 months.


The total number of airports or airfields recognisable from the air is 352
The number of scheduled passenger airline operators has grown to 15 and the number
of aircraft in their fleet has risen to more than 400. International flights have increased
to 706 flights per week. Due to enhanced opportunities for international connectivity,
69 foreign airlines from 49 countries are flying into India
According to the Department of Industrial Policy and Promotion (DIPP), the FDI
inflow into air transport (including air freight) has been US$ 438.23 million from
April 2000 to May 2012

Historically, the Indian aviation sector has been a laggard relative to its growth potential due
to excessive regulations and taxations, government ownership of airlines and resulting high
cost of air travel. However, this has changed rapidly over the last decade with the sector
showing explosive growth supported by structural reforms, airport modernizations, entry of
private airlines, adoption of low fare - no frills models and improvement in service standards.
Like elsewhere in the world, air travel is been transformed into a mode of mass transportation
and is gradually shedding its elitist image. Strong passenger traffic growth aided by buoyant
economy, favourable demographics, rising disposable incomes and low penetration levels
India aviation industry promises huge growth potential due to large and growing middle
class population, favourable demographics, rapid economic growth, higher disposable
incomes, rising aspirations of the middle class, and overall low penetration levels (less than
3%). The industry has grown at a 16% CAGR in passenger traffic terms over the past decade.
With advent of LCCs and resultant decline in yields, passenger traffic growth which averaged
13% in the first half has increased substantially to 19% CAGR during 2006-2011. Despite
strong growth, air travel penetration in India remains among the lowest in the world. In fact,
air travel penetration in India is less than half of that in China where people take 0.2 trips per
person per year; indicating strong long term growth potential. A comparative statistic in
United States, the worlds largest domestic aviation market stands at 2 trips per person per
year. We expect passenger demand to remain stable and grow between 12-15% in the
medium term, assuming a no major weakness in GDP growth going forward.
However domestic airlines operate under high cost environment; intense competition has
constrained yields; aggressive fleet expansions have impacted profitability and capital
structures. Despite reforms, the domestic aviation sector continues to operate under high cost
environment due to high taxes on Aviation Turbine Fuel (ATF), high airport charges,
significant congestion at major airports, dearth of experienced commercial pilots, inflexible
labour laws and overall higher cost of capital. While most of these factors are not under
direct control of airline operators, the problems have compounded due to industry-wide
capacity additions, much in excess of actual demand.
Intense competitive pressure from Low cost carriers (focusing on maximizing load factors)
and national carrier (looking to regain lost market share) have constrained yields from rising
in-sync with the elevated cost base. Besides, aggressive fleet expansions (LCCs have added
aircrafts mainly on long-term operating leases; FSCs have purchased aircrafts debt
financed, most often backed by guarantees from the US EXIM Bank or Europes ECA) to
leverage upon the anticipated robust growth and to support international operations have
significantly impacted the capital structure and weakened the credit profile of most domestic

Recent Initiatives and Developments
The Union Ministry of Finance has paved the way for the implementation of relaxed External
Commercial Borrowing (ECB) norms announced in the Union Budget 2012-13 for the
aviation sector. ECBs under this provision would have a ceiling of US$ 1 billion for the
Buoyed by the success of implementation of public private partnership (PPP) model in airport
development, the Government plans to invest US$ 30 billion in next 10 years with more
existing airports being opened up for modernisation.
Airport retail business in India reached more than US$ 1 billion in revenue during 2011, on
the back of robust growth in passenger traffic and more people shopping on the go, according
to Bangalore-based consulting firm Aspic Projects. The business is growing at 17-18 per cent
annually, emerging as a viable platform for retailers and operators of the new airports.
Indira Gandhi International Airport, New Delhi is the most lucrative retail location in the
country, having generated sales of 5,000 per square feet per month in 2011, which is almost
four times higher than the second-best location. This figure includes sales from duty-free
shops and regular shops as well. New Delhi airport is one of the most profitable destinations
for brands with more than 35 million passengers using the airport last year.
Meanwhile, US-based aircraft manufacturer Boeing predicts that India will require 1,320 new
aircraft valued at US$ 150 billion over the next 20 years.
In the last one year, there has been an increase of $20 billion in the number of aircraft India
will require over the next 20 years. This is primarily because of growth in GDP, development
of infrastructure and increase in the number of people willing to fly - be it for vacation or rest
and recreation, according to Dr Dinesh Keskar, President, Boeing India.
Further, the Vision 2020 statement announced by the Ministry of Civil Aviation, envisages
creating infrastructure to handle 280 million passengers by 2020.

Government Initiatives
To create world class airports, the government has recognised the need for the
involvement of private players in the development of airport infrastructure.
Development of airports at Delhi and Mumbai has been taken up under Public Private
Partnership (PPP) mode
The capital expenditure is funded through private equity, borrowings, and internal
resources of joint venture companies. The development work of Mumbai airport is
likely to be completed by 2012 whereas the work of a new terminal (Terminal 3) at
Indira Gandhi International Airport at Delhi got completed in July 2010. The
development work of Kolkata and Chennai International airport has been taken up by
Airport Authority of India whereas Bangaluru and Hyderabad international airports
have been developed on PPP mode as Greenfield airports. The AAI has taken up the
development of 35 non metro airports at an estimated cost of US$ 777.80 million
The Government has also developed a model concession agreement to develop
Greenfield airports under the PPP mode. The government has also allowed 100 per
cent FDI, under the automatic route, for Greenfield airports. FDI up to 49 per cent is
allowed in the domestic airlines sector under the automatic route. Recently, the
Government has relaxed rules to allow foreign carriers to buy up to 49 per cent stake
in Indian airlines
The adoption of Open Sky Policy has resulted in the entry of several new privately
owned airlines and increased frequency / flights for international airline


Date of Establishment 1992
Revenue 0 ( USD in Millions )
Market Cap 53755.87194915 ( Rs. in Millions )
Corporate Address Siroya Centre,Sahar Airport Road, Andheri -
(East)Mumbai-400099, Maharashtra
Management Details Chairperson Naresh Goyal
MD -
Directors - Ali Ghandour, Aman Mehta, Anita Goyal,
Arun Kanakal, Gaurang Shetty, I M Kadri, Javed Akhtar,
KG Vishwanath, M Shivkumar, Monica Chopra, Naresh
Goyal, Nikos Kardassis, Pierre J Jeanniot, Saroj K Datta,
Shah Rukh Khan, Victoriano P Dungca, Yash Raj Chopra
Business Operation Airlines
Background Jet Airways (India) was incorporated in 1992, as an airline
company. In India it has over 357 flights daily to 42
destinations. It operates flight to 20 international
The Companys subsidiaries include Jet Lite (
Financials Total Income - Rs. 156233.4 Million ( year ending
Mar 2012)
Net Profit - Rs. Million ( year ending Mar 2012)
Company Secretary Arun Kanakal
Bankers Calyon Bank, HSBC Bank
Auditors Chaturvedi & Shah, Deloittee Haskins & Sells

Passenger Revenue 2012 03 0.00 125820.50 0.00

Cargo Revenue 2012 03 0.00 13084.10 0.00

Revenue from Leasing
2012 03 0.00 4521.20 0.00

Other Revenue 2012 03 0.00 3819.40 0.00

Excess Baggage
2012 03 0.00 913.90 0.00

Jet Airways (India) was incorporated in 1992, as an airline company. In India it has over 357 flights
daily to 42 destinations. It operates flight to 20 international destinations.
The Companys subsidiaries include Jet Lite (India), Jet Airways LLC, Trans Continental e
Services, Jet Enterprises, Jet Airways of India Inc., India Jet airways Pty and Jet Airways Europe
Services N.V.
Early years
Jet Airways was incorporated as an air taxi operator on 1 April 1992. It started commercial
operations on 5 May 1993 with a fleet of four leased Boeing 737-300 aircraft. In January 1994 a
change in the law enabled Jet Airways to apply for scheduled airline status, which was granted on 4
January 1995. It began international operations from Chennai to Colombo in March 2004. The
company is listed on the Bombay Stock Exchange, but 80% of its stock is controlled by Naresh
Goyal (through his ownership of Jets parent company, Tailwinds). It has 13,177 employees (as at
31 March 2011).
Naresh Goyal who already owned Jetair (Private) Limited, which provided sales and marketing
for foreign airlines in India set up Jet Airways as a full-service scheduled airline to compete
against state-owned Indian Airlines. Indian Airlines had enjoyed a monopoly in the domestic
market between 1953, when all major Indian air transport providers were nationalised under the Air
Corporations Act (1953), and January 1994, when the Air Corporations Act was repealed,
following which Jet Airways received scheduled airline status.
Air Sahara buyout
In January 2006 Jet Airways announced that it would buy Air Sahara for US$500 million in an all-
cash deal, making it the biggest takeover in Indian aviation history. It would have resulted in the
country's largest airline but the deal fell through in June 2006.
On 12 April 2007 Jet Airways agreed to buy out Air Sahara for INR14.5 billion (US$340 million).
Air Sahara was renamed JetLite, and was marketed between a low-cost carrier and a full service
airline. In August 2008 Jet Airways announced its plans to completely integrate JetLite into Jet

In October 2008 Jet Airways laid off 1,900 of its employees, resulting in the largest lay-off in the
history of Indian aviation. However the employees were later asked to return to work; Civil
Aviation Minister Praful Patel said that the management reviewed its decision after he analysed the
decision with them.
In October 2008 Jet Airways and rival Kingfisher Airlines announced an alliance which primarily
includes an agreement on code-sharing on both domestic and international flights, joint fuel
management to reduce expenses, common ground handling, joint utilization of crew and sharing of
similar frequent flier programmes.

On 8 May 2009 Jet Airways launched its low-cost brand, Jet Konnect. The decision to launch a
new brand instead of expanding the JetLite network was taken after considering the regulatory
delays involved in transferring aircraft from Jet Airways to JetLite, as the two have different
operator codes. The brand was launched on sectors that had 50% or less load factor with the aim of
increasing it to 70% and above. Jet officials said that the brand would cease to exist once the
demand for the regular Jet Airways increases.
According to a PTI report, for the third quarter of 2010, Jet Airways (Jet+JetLite) had a market
share of 26.9%

in terms of passengers carried, thus making it a market leader in India, followed by
Kingfisher Airlines with 19.9% .
In July 2012, Jet Airways officially sought government approval to join Star Alliance.

Effects of recession
The recession forced Jet Airways to discontinue the following routes: AhmedabadLondon,
AmritsarLondon, BangaloreBrussels, MumbaiShanghaiSan Francisco and Brussels-New
York. It also had to put an indefinite delay on its expansion plans. Jet Airways was forced to lease
out seven of its ten Boeing 777-300ERs to survive the financial crunch. Due to the recession all
flights to North America were operated on an Airbus A330-200 replacing the Boeing 777-300ERs.
It also had to sell a brand-new, yet-to-be-delivered Boeing 777-300ER in 2009 and had to defer all
new aircraft deliveries by at least two years. The airline planned to restore the Mumbai-Shanghai
route by the end of 2011 but never went through with it.
It provides services such as airport lounges, bus services, coach services, complimentary chauffeur
drive services,
It has created Jetkids program for kids between 2 years to 12 years that offers gift and offers while
there are travelling in airplanes. It also offers services like Jetmobile, JetEscapes, Cargo, etc.
Jet Airways provides services such car rentals, hotels, conversion services, retails services,
telecommunications etc.
To provide these services it has partnered with various companies such as Air France, American
Airlines, Citi, HDFC Bank, ICICI Bank, HSBC, Hyatt, Hilton Hotels, The Leela, Marriott, Oberoi
Hotels & Resorts, The Park, Ferns n Petals, matrix, are amongst others.
Jet Airways won airline with best first-class service in the world award at Business Travelers
20th annual best in business travel awards gala in the USA.
Jet Airways was awarded Best Cargo Airline of Central Asia at the prestigious Cargo Airline of
the Year Awards
Jet Airways was voted as the Best Airline in Central/South Asia and India in an annual Global
Traveler magazine survey.
Jet Airways will partner with Emirates to span a reciprocal frequent flyers arrangement and
unilateral code share agreements.

Corporate affairs and identity
Head office
Jet Airway's head office is located in the Siroya Centre in Andheri, Mumbai.
Jet Airways's head office was previously located in the S.M. Centre, a rented, unmarked six story
building in Andheri. In 2008 Robyn Meredith of Forbes stated that the complex was "as shabby as
(Jet Airways CEO Nares) Goyal's home is posh" and that the complex was "In need of a fresh coat
of paint". The complex was 15 minutes driving time from Chhatrapati Shivaji International Airport.
J etLite
JetLite was a wholly owned subsidiary of Jet Airways. It was established as Sahara Airlines on 20
September 1991 and began operations on 3 December 1993 with two Boeing 737-200 aircraft.
Initially services were primarily concentrated in the northern sectors of India, keeping Delhi as its
base, and then operations were extended to cover all the country. Sahara Airlines was rebranded as
Air Sahara on 2 October 2000. On 12 April 2007 Jet Airways took over Air Sahara and on 16 April
2007 Air Sahara was renamed as JetLite. JetLite operated a fleet of mixed ownedleased Boeing
737 Next Generation aircraft and Bombardier CRJ-200ER. JetLite ceased operations on 25 March
2012 after merger with Jet Konnect.
J etKonnect
JetKonnect is the low-cost brand of Jet Airways. It was launched on 8 May 2009.It operates a fleet
of Boeing 737 Next Generation aircraft.
The rationale for launching Jet Konnect was to close down loss-making routes and divert the planes
to more profitable routes with higher passenger load factors. Jet already ran a low-cost airline
named JetLite. According to Jet Airways, the decision to launch a low-cost brand instead of
expanding the existing JetLite was taken to avoid the regulatory delays associated with moving
excess aircraft and assets from Jet Airways to JetLite, which have separate operating codes. Jet
Konnect offers a no frills flight where meals and other refreshments have to be purchased on board.
To identify if the flight is a full service or Konnect the flight numbers for Konnect are in the series
9W 2000-2999. Jet Airways merged the JetLite brand into Jet Konnect on 25 March 2012.
Jet Airways offers eight business class seats in Konnect to cash in on Kingfisher Airlines' woes.
Jet Airways serves 52 domestic destinations and 21 international destinations, a total of 73 in 19
countries across Asia, Europe and North America. Short-haul destinations are served using Boeing
737 Next Generation. ATR 72-500s are used only on domestic regional routes, while long-haul
routes are served using its Airbus A330-200 and Boeing 777-300ER aircraft. London, England was
the airline's first long-haul destination and was launched in 2005.
Since 2007 Jet Airways has had a scissors hub at Brussels Airport in Belgium for onward trans-
Atlantic connections to Canada and the United States.

Jet Airways India Ltd. has reported a net profit of Rs.85 crore for the third quarter ended December
31, 2012, as compared to a net loss of Rs.101 crore for the corresponding period of the previous
The company reported total revenue of Rs.4,251 crore, up 6.6 per cent. The Jet Group, including Jet
Airways and JetLite, which operates under the brand name JetKonnect, reported a net profit of
Rs.93 crore for the third quarter as compared to a net loss of Rs.123 crore.
The airlines reported a combined revenue of Rs.4,770 crore, up by 5.5 per cent as compared to the
same period in the previous year. JetLite reported total revenue of Rs.519 crore and a net profit of
Rs.8 crore for the third quarter as against a net loss of Rs.21.6 crore in the year-ago period.
All of our efforts on revenues, costs and network side have resulted in turning around the
operation of the airline. This is despite higher fuel prices and rupee depreciation impact that we
have had in the last few months. The combined impact of higher yields and lower costs (ex-fuel)
have resulted in significantly lowering the breakeven seat factor levels in the business, Nikos
Kardassis, Chief Executive Officer, Jet Airways said.
We continue our endeavour on cost cutting measures, exploring various avenues of ancillary
revenues and process improvements across all segments of the business, which will help us
improve the business further, he said.
At Jet Airways, we remain committed to consistently improving our legendary warmth, service,
reliability and courtesy delivered by an attentive staff to ensure that we achieve customer delight,
Mr. Kardassis added.
In the domestic sector, Jet airways witnessed a lower seat factor of 72.7 per cent as compared to
75.2 per cent. In international operations also, the seat factor went down to 78 per cent from 79.2
per cent.

Profit & Loss - Jet Airways (India) Ltd.
Mar'12 Mar'11 Mar'10 Mar'09 Mar'08
12 Months 12 Months 12 Months 12 Months 12 Months
Sales Turnover 15,224.68 12,782.52 10,438.57 11,571.15 8,811.10
Excise Duty 0.00 0.00 0.00 0.00 0.00
NET SALES 15,224.68 12,782.52 10,438.57 11,571.15 8,811.10
Other Income 0.00 0.00 0.00 0.00 0.00
TOTAL INCOME 15,581.69 12,955.92 10,590.61 11,683.42 8,926.33
Manufacturing Expenses 9,387.39 6,742.55 5,265.69 7,446.48 5,129.92
Material Consumed 0.00 0.00 0.00 0.00 0.00
Personal Expenses 1,599.49 1,342.19 1,226.55 1,410.50 1,205.18
Selling Expenses 1,361.67 1,261.72 984.91 1,098.17 982.86
Administrative Expenses 1,024.28 933.15 853.94 1,017.54 739.24
Expenses Capitalised 0.00 0.00 0.00 0.00 0.00
Provisions Made 0.00 0.00 0.00 0.00 0.00
TOTAL EXPENDITURE 13,372.83 10,279.61 8,331.09 10,972.69 8,057.20
Operating Profit 1,851.85 2,502.91 2,107.48 598.46 753.90
EBITDA 2,208.86 2,676.31 2,259.52 710.73 869.13
Depreciation 939.88 910.62 961.96 899.81 777.80
Other Write-offs 0.00 0.00 0.00 0.00 0.00
EBIT 1,268.98 1,765.69 1,297.56 -189.08 91.33
Interest 2,011.24 1,872.72 1,824.74 1,450.86 1,056.03

Shareholding pattern - Jet Airways (India) Ltd.
Holder's Name No of Shares % Share Holding

Promoters 10995 0.01%

Foreign Promoter 69057210 79.99%

General Public 4286315 4.96%

Foreign Institutions 3690776 4.27%

EBT -742.26 -107.03 -527.18 -1,639.94 -964.70
Taxes 437.25 230.49 78.97 22.21 -160.73
Profit and Loss for the Year -1,179.51 -337.52 -606.15 -1,662.15 -803.97
Non Recurring Items -104.30 77.17 97.78 331.48 522.01
Other Non-Cash Adjustments 47.71 270.04 40.73 928.33 28.90
Other Adjustments 0.00 0.00 0.00 0.00 0.00
REPORTED PAT -1,236.10 9.69 -467.64 -402.34 -253.06
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend (%) 0.00 0.00 0.00 0.00 0.00
Shares in Issue (Lakhs) 863.34 863.34 863.34 863.34 863.34
EPS - Annualised (Rs) -143.18 1.12 -54.17 -46.60 -29.31
Banks Mutual Funds 3524129 4.08%

Financial Institutions 2735156 3.17%

Other Companies 2485186 2.88%

Others 384502 0.45%

Foreign NRI 159742 0.19%

Etihad Airways
Etihad Airways is the flag carrier of the United Arab Emirates. Established by Royal decree
in July 2003 and based in Abu Dhabi, Etihad commenced operations in November 2003. The
name derives from the Arabic word for "union" ( al-tid).
The airline operates more than 1,300 flights per week to 86 passenger and cargo destinations
in the Middle East, Africa, Europe, Asia, Australia and the Americas, with a fleet of 72
Airbus and Boeing aircraft. In 2012, Etihad carried 10.3 million passengers, a 23% increase
on the previous year, delivering revenues of US$ 4.8 billion and net profits of US$ 42
million. Etihad Airways is the fourth largest airline in the Middle East and it is the second
largest airline in the United Arab Emirates, after the Dubai-based airline Emirates.
In addition to its core activity of passenger transportation, Etihad also operates Etihad
Holidays and Etihad Cargo The airline is based at Abu Dhabi International Airport and its
head office is in Khalifa City A, Abu Dhabi.
Etihad reported its first full-year net profit in 2011, of US$14 million, in line with the
strategic plan announced by CEO James Hogan in 2006.
In December 2011, Etihad announced it had taken a 29.21% stake in Air Berlin, Europes
sixth largest airline, and James Hogan was appointed Vice Chairman. It followed this up with
minority stakes in other airlines Air Seychelles (40%), Aer Lingus (2.987%), Virgin
Australia (10%). Also, Etihad is close to acquiring 24% stake in Indian carrier Jet Airways
and 49% stake in Serbian national carrier Jat Airways.
Etihad Airways was established as the flag carrier of the United Arab Emirates in July 2003
by Royal (Amiri) Decree issued by Sheikh Khalifa bin Zayed Al Nahyan. It started with an
initial paid-up capital of AED500 million. Services were launched with a ceremonial flight to
Al Ain on 5 November 2003. On 12 November 2003, Etihad commenced commercial
operations with the launch of services to Beirut, and has gone on to become the fastest
growing airline in the history of commercial aviation.
In June 2004, the airline made an US$8-billion aircraft order for five Boeing 777-300ERs and
24 Airbus aircraft, including four A380-800s.
The airline announced what was the largest aircraft order in commercial aviation history at
the Farnborough Airshow in 2008, for up to 205 aircraft 100 firm orders, 55 options and
50 purchase rights.
As of February 2013, the airline operates passenger and cargo services to 86 destinations
around the world from its home base in Abu Dhabi.
In 2012, Etihad carried 10.3 million passengers, a 23% increase on the previous year.
Etihad has its head office, lead by Kamran Ali, in Khalifa City A, Abu Dhabi, near Abu
Dhabi International Airport. Etihad spent 183.6 million UAE dirhams ($50 million USD) in
2007 to arrange to have its new head office and training center built. The new head office was
scheduled to be finished by the end of 2007 Airline to Shift to New Headquarters by 2008."
Gulf News at Zawya 17 April 2007. Retrieved on 11 February 2010.</ref>
Etihad is governed by a board of directors chaired by HH Sheikh Hamed bin Zayed Al
Nahyan, HH Sheikh Khaled bin Zayed Al Nahyan being the vice chairman and operates in
terms of its founding legislation and the Article of Association of the Company. The Board
consists of seven independent non-executive members and has two sub-committees, being an
Executive Committee and an Audit Committee, each with its own charter and chairman.
Other members of the board include: Mohammed Mubarak Fadel Al Mazrouei, Ahmed Ali
Al Sayegh, Mubarak Hamad Al Muhairi, Hamad Abdullah Al Shamsi ,Khalifa Sultan Al
Suwaidi and George Cheaib.
The airline is led by James Hogan (formerly CEO of Gulf Air) who was appointed as
President and Chief Executive Officer on 10 September 2006.

Etihad Airways Fleet
Passenger Fleet
Aircraft Total Orders Options
F J Y Total
Airbus A319-
2 16 90 106

Airbus A320-
17 11 18
16 120 136

162 162

Airbus A321-
Converted from A320 order,
Delivery from November 2013
Airbus A330-
18 2 22 240 262

Airbus A330-
6 8 32 191 231

Airbus A340-
4 12 28 200 240

Airbus A340-
7 12 32 248 292

Airbus A350-
12 25 TBA Delivery: 2017
Airbus A380-
10 5 TBA Delivery 2014
Boeing 777-
14 4 12
28 384 412

8 40 282 330

Boeing 7879 41 25 TBA Delivery: Q4 2014
Cargo Fleet
Aircraft Total Orders Options
Airbus A300-
1 97,000 lbs operated by Maximus Air Cargo
Airbus A330-
3 1 152,100 lbs

Boeing 747-
1 250,000 lbs Operated by KLM/Martinair Cargo
Boeing 747-
1 250,000 lbs Operated by Atlas Air
Boeing 747-8F 2
30,177 cu ft
(854.5 m3)
Operated by Atlas Air, one in full
Etihad livery
Boeing 777F 3 225,000 lbs

Total 72 91 85

Etihad Crystal Cargo was the launch customer of the Airbus A330-200F, and received the
first aircraft on 20 July 2010 during the Farnborough Airshow.
In 2012, Etihad cancelled 13 orders in total for the Airbus A350-1000, becoming the first
airline to cancel some of its orders for this particular aircraft after Airbus had redesigned the
A350-1000 in 2011. It leaves 12 aircraft on order from an original order of 25.

Codeshare agreements
Etihad Airways has codeshare agreements with the following airlines (as of July 2013):
Aer Lingus
Aer Lingus Regional
Air Astana
Air Berlin
Air Canada
Air France
Air Malta
Air New Zealand
Air Seychelles
All Nippon Airways
American Airlines
Asiana Airline
Bangkok Airways
Brussels Airlines
China Eastern Airlines
Czech Airlines
Garuda Indonesia
Hainan Airlines
Jat Airways
Jet Airways
Kenya Airways
Kuwait Airways
Malaysia Airlines
Middle East Airlines
Nas Air
Olympic Air
Philippine Airlines
Royal Air Maroc
S7 Airlines
Safi Airways
South African Airways
SriLankan Airlines
TAP Portugal
Turkish Airlines
Vietnam Airlines
Virgin Australia
Etihad also codeshare with French Railways SNCF

Gulf carrier Etihad Airways, seeking to widen operations in India and other Asian markets, is
in the final stages of talks to buy part of either Jet Airways or grounded rival Kingfisher
Airlines, an Indian government official said on Monday.
A deal, which the official said could be announced by next week, would be the first since the
government relaxed ownership rules in September to allow foreign airlines to invest up to 49
percent in a domestic carrier.
"Etihad has not yet decided. They are talking to both," said the official, who has knowledge
of the talks but declined to be named as the negotiations are confidential.
The decision is now with the board of Etihad and Abu Dhabi's state-owned investment fund
Mubadala, said one Dubai-based source who did not want to be identified as discussions were
Indian financial firm Edelweiss is advising Kingfisher. The firm and the airline's management
team have met Etihad several times over the last few days.
Buying into Jet is seen as more lucrative for Etihad as the two carriers already have a code-
sharing agreement and could target the market share of state-owned Air India and Emirates,
the latter of which dominates routes between India and the Middle East.
But a stake in Kingfisher, which has been grounded after its licenses were suspended and
whose owner, drinks baron Vijay Mallya, has been looking for an investor for more than a
year, would be cheaper.
Jet Airways was set to sign a deal with Etihad valued at around USD$440 million within six
months, a source had confirmed in November.
The Dubai-based source said news leaked on the Jet-Etihad partnership plans, which shot up
the stock price, causing the Abu Dhabi carrier to reconsider.
"The deal was almost done with Jet when it was leaked and this upset Etihad," said the
He said Jet and Kingfisher were equal contenders for Etihad's interest now and the Gulf
airline may even look at a stake in both, giving it a formidable market presence.
"Entering India in such a scale will block all its competitors," he said.
Indian carriers are beset by stiff competition and high operating costs and have been in talks
to sell minority stakes to foreign operators.
"Unbelievable as it might sound, Kingfisher at the moment stands a better chance, but the
price has to be right," said Rajan Mehra, an industry expert and the India head of US-based
private jet operator Universal Aviation.
"Etihad will be able to have control over the airline. Right now what they want is control,"
said Mehra, who previously headed Qatar Airways' India operations.
Kingfisher is considering giving up operational control of its overseas flights if a deal goes
through, a separate source had said earlier.
The debt-laden carrier said last week it was in talks with Etihad and other investors about
taking a stake, while later in the week it capped foreign portfolio investment in the company
at 3 percent, carving space for a foreign investor to buy up to 49 percent in it.
On Monday, Kingfisher said it was looking to restart operations and would arrange funding
itself. The carrier said it would discuss a full recapitalisation plan with a small group of
Kingfisher will need about INR4.25 billion rupees (USD$77.91 million) to restart according
to its plan, said Shyamal Acharya, a deputy managing director at State Bank of India, the
country's biggest lender and the lead bank to Kingfisher.

The strategic investment by the Abu Dhabi-based Etihad Airways in Jet Airways could be a
game-changer for the latter and its shareholders. According to the deal, Jet will be issuing
27.2 million shares to Etihad for Rs 754.7 apiece totalling Rs 2,060 crore (Rs 20.6 billion).
In the short term, the deal brings much-needed cash and will help Jet improve its debt-laden
balance sheet and improve its financial ratios. In the long term, too, the strategic alliance with
Etihad will make Jet more competitive in the domestic market as well as on international
routes, which now account for 60 per cent of its revenues and operating profits.
Jet's stock, which scaled to its two-year high of Rs 625 levels in December 2012, is thus
expected to rule firm on Thursday.
The deal could be a game-changer for Jet. Says Sharan Lillaney of Angel Broking, "The deal
is a positive as Jet will be able to refinance its high-cost debt and improve its cash flows. In
addition to improving its balance sheet, the company can also look at expansions, both in the
domestic as well as international markets."
On the valuations front, the deal implies a market capitalisation to sales of 0.3-0.4 times (and
31 per cent premium to current market price), a decent premium, believe analysts. This could
set a benchmark for similar deals in future, says Lillaney.
On the operational front, the deal will convert two competitors into partners and help reduce
costs and at the same time expand their network, says Lillaney. Among the smaller areas of
co-operation could be parking and landing slots, ground handling and aircraft maintenance.
While asset utilisation could be optimised, the two would also be in a position to offer wider
options to their customers. More importantly, an improvement in cash flows also means Jet
will be able to bargain for higher discounts on airport charges and fuel.
Oil marketing companies (OMCs) give a cash discount to the tune of 5-10 per cent on
aviation turbine fuel (ATF). More, any loans or guarantees from Etihad will also help Jet
Airways bring down its costs.
On the business front, the macro environment is also turning positive, with a fall in crude oil
prices. Given the 17 per cent fall in crude oil prices since mid-February, expect Jet to benefit
given that fuel accounts for 45 per cent of its operating costs.
"Expect airlines to pass on the benefits of fuel price cuts to consumers, which will stimulate
flagging demand and help shore up their passenger loads," says an analyst with a domestic
brokerage. Passenger demand has been on the decline for six months, forcing all airline
companies to launch discount schemes earlier this year, despite the drop in capacity and
lower competition on account of grounding of Kingfisher Airlines.
However, post the recent five per cent cut by OMCs last week, analysts expect more cuts next
month. In the medium term, analysts expect demand to perk and with prices likely to remain
firm, they expect loads and yields to improve.
Jet Airways, which came out with its IPO in 2005 at Rs 1,100 a share, has been quoting
below the offer price since early 2006. Despite a 70 per cent rally in the past six months, in
anticipation of the deal, the stock is still trading at half of its IPO price (while the Sensex has
tripled in value).
A lot of this can be attributed to Jet reporting losses (on a net basis) since FY07, due to the
combined effect of poor yields on domestic routes, high fuel prices and interest and
depreciation charges on acquiring new aircraft. Between FY06 and FY09, Jet quadrupled its
fleet size at a cost of nearly Rs 14,000 crore (Rs 140 billion), largely financed through debt.
This started hurting when air fares in India tumbled and ATF prices soared leading to losses.
During the last few years, Jet's debt has been at elevated levels (debt-equity ratio of 11, one
of the highest among BSE 500 companies).
While the deal with Etihad might not result in an immediate turnaround in Jet Airways'
financial performance, it will improve debt-equity to a manageable level of 3.8 and support
its share price, thereby lessening the pain for shareholders. The downside to the deal is the
nearly 32 per cent dilution in Jet's equity capital (and in EPS proportionately).
The sting from dilution, though, will be less given that Etihad is acquiring equity in Jet
Airways at 31.5 per cent premium to its last closing price of Rs 573. This could spark a rally
in Jet's share price on Thursday. The deal price could also become a benchmark if Jet raises
further equity in the near term.
The disappointment, however, is that the deal will not result in any open offer for minority
shareholders. This may cap any potential short-term rally and also prove to be a dampener for
traders who may have built-up positions hoping to tender shares at premium to Etihad.
They may now have to wait for the deal to materialise into operational and financial gains for
Jet to make their profits.


Jet-Etihad deal: Etihad rejects securities law violation
Etihad has told Sebi that it has not violated any securities law by not making an open offer,
the capital market regulator is now seeking further clarity on the issue from other agencies
including fair trade watchdog CCI, Finance Ministry and Aviation Ministry.
The Rs 2,060-crore Jet-Etihad deal seems to have hit a fresh round of regulatory turbulence,
with the Abu Dhabi carrier rejecting any obligation to make an open offer for minority
shareholders of the Indian carrier. While Etihad has told Sebi that it has not violated any
securities law by not making an open offer, the capital market regulator is now seeking
further clarity on the issue from other agencies including fair trade watchdog CCI, Finance
Ministry and Aviation Ministry, sources said.
A query sent to both Etihad and Jet regarding the issue remained unanswered. While Sebi
had earlier contended that an open offer might not be required if Etihad is classified as a
'public shareholder' after buying Jet's 24 percent stake, it had put a caveat saying this
observation could change if some other regulator points out at transfer of control in this deal.
Jet Airways stock price
On June 16, 2014, Jet Airways closed at Rs 244.60, down Rs 5.55, or 2.22 percent. The 52-
week high of the share was Rs 489.00 and the 52-week low was Rs 210.25. The latest book
value of the company is Rs -350.63 per share. At current value, the price-to-book value of the
company was -0.70.

Fresh woes for Jet-Etihad deal; Singapore begins scrutiny
The deal, which involves purchase of a 24 percent stake in Naresh Goyal-led Jet for about Rs
2,060 crore by Etihad and other tie-ups, has been going through turbulent times ever since it
was announced more than a year ago in April 2013.
In fresh troubles for Indian carrier Jet Airways ' alliance with Abu Dhabi's Etihad, fair trade
watchdog in Singapore has begun a scrutiny of the deal to probe any possible violation of its
competition laws.
After months of scrutiny, the deal got consummated late last year after clearance by various
Indian regulators including fair trade watchdog CCI (Competition Commission of India) and
capital markets regulator Sebi.
However, the deal has now come under the scanner of the Competition Commission of
Singapore (CCS), as the alliance "relates to the provision of international air passenger
transport services (and associated support services), with a specific focus on the Singapore
origin and destination city pairs".
The CCS said in a notification that it was seeking feedback from the public and other
stakeholders till July 11, after which it would take its final call on the deal.
The notification was issued "in relation to Section 34 of the Competition Act which prohibits
agreements between undertakings, decisions by associations of undertakings or concerted
practices which have as their object or effect the prevention, restriction or distortion of
competition within Singapore.

Jet Airways staff to meet COO over delayed salaries
Salary payments at the Naresh Goyal- run Jet Airways continue to be delayed despite the Rs
2,060 crore infusion by Etihad, and the issue would be raised at the meeting of the staff
representatives and chief operating officer Hameed Ali this week
The meeting was scheduled for May 28. The company, which reported a loss of Rs 268 crore
in the December quarter, is set to declare its March quarter and full fiscal financial numbers
later this week

"Earlier the company used to pay salary on the last day of the month. Then the payment date
was rescheduled to 7th of every month and thereafter to 15th after the airline was hit by a
financial crisis. Unfortunately, this has become a new norm and we are paid around the
middle of the month even after the Rs 2,060-crore Etihad deal,".
Stating that the employees earlier accepted the deferred payment schedule as the company
was going though "financial turbulence", sources said, however even after the Etihad deal,
the management maintains that the airline is short of funds.

Jet Airways crashes 9% on highest-ever annual loss
Shares of Jet Airways crashed over 9 percent intraday on Wednesday as the carrier reported
its highest-ever annual loss of Rs 4,129 crore in FY14. Registering a fifth straight quarterly
loss, the airlines March quarter net loss stood at Rs 2,153 crore as high expenses and adverse
operating conditions dragged its earnings.
Its fourth-quarter loss in 2012-13 stood at Rs 495 crore, while its consolidated full-year loss
in that fiscal was Rs 779 crore.
For 2013-14 fiscal, Jet reported operating loss of Rs 2,076.2 crore and a non-cash
extraordinary write down of Rs 936 crore, aircraft-on-ground of Rs 417.6 crore, and
impairment of goodwill of Rs 700 crore. On stand-alone basis, Jet Airways' total income in
FY14 increased to Rs 17,713.47 crore from Rs 17,403.17 crore in FY13.
The quarterly total income grew nearly 10 percent to Rs 4,678.17 crore during the January-
March 2014 period. The net loss on stand-alone basis widened to Rs 3,667.85 crore from Rs
485 crore in FY13.

SEBI clears Jet-Etihad deal
Securities Exchange Board of India by way of its order dated May 8, 2014 has given a green
signal for the proposed investment by Etihad Airways PJSC in Jet Airways (India) Limited.
With this, the proposed transaction seems to have cleared all regulatory hurdles finally. For
more please read the attached report by Nishith Desai Associates.
Jet Airways expands code-sharing with Etihad
The expansion will also enhance the position of Jet Airways' hub in Mumbai and Delhi with
convenient mid-point option for traffic flowing between the Gulf, Middle East, Europe,
America and Asia.
Jet Airways today announced expansion of its code-sharing agreement with Etihad Airways
to various destinations across the globe.
The expansion will also enhance the position of Jet Airways' hub in Mumbai and Delhi with
convenient mid-point option for traffic flowing between the Gulf, Middle East, Europe,
America and Asia.
"We are pleased to have expanded our codeshare partnership with Etihad Airways as it will
further strengthen the global network of both airlines and provide increased benefits to all our
The airline said the new code share flights are available for sale with immediate effect.
The new code-sharing agreement will help passengers travelling from the country to connect
onto Jet Airways codeshare flights on the Etihad network via Abu Dhabi to European
destinations including, Amsterdam, Brussels, Dusseldorf, Frankfurt, Geneva, Manchester,
Munich, Paris, Dublin and Milan.
The agreement also covers North American destinations such as Chicago, New York (JFK)
and Washington as well as Johannesburg and Nairobi on the African continent and Brisbane
in Australia via Singapore.
As per the expanded reciprocal agreement, Jet Airways has placed its marketing code (9W)
on flights operated by Etihad Airways, between Abu Dhabi and key destinations across cities
such as Ahmedabad, Bangalore, Calicut, Chennai, Delhi, Hyderabad, Mumbai, Kochi and
Etihad Airways has also placed its marketing code (EY) on Jet Airways' flights operated
between Abu Dhabi and key destinations in Mumbai, Delhi, Cochin, Bangalore, Hyderabad
and Chennai. The codeshare also enables Etihad guests to access Far East Asian destinations
on Jet Airways-operated flights between Mumbai, Delhi, Chennai and Singapore, Hong Kong
and Bangkok.