Jet Airways was set up by Naresh Goyal, who owned Jetair Private Limited which provided sales and marketing for foreign airlines in India. Jet Airways was started as a full-service scheduled airline that would give competition to state-owned Indian Airlines, who had enjoyed monopoly in the domestic market since 1953. Jet Airways acquired its scheduled airline status in January 1994, when the Air Corporations Act (1953) was repealed.
In January 2006, Jet Airways announced its decision to buy Air Sahara, the only other major private airline, making it the biggest takeover in Indian aviation history. The resulting airline would have been the country's largest, but the deal fell through in June 2006. However, a modified deal went through in April 2007 and Air Sahara became JetLite. In August 2008, the airline announced its plans to fully integrate JetLite into Jet Airways.
Further, in October 2008, Jet Airways announced an alliance with Kingfisher Airlines that included an agreement on code-sharing on domestic and international flights, common ground handling, join fuel management, join utilisation of crew and sharing of similar frequent flier programmes. In May 2009, Jet Airways introduced another low-cost airline Jet Konnect with spare aircraft that were earlier discontinued due to low passenger load factors. Jet Airways Konnect uses the same operator code as Jet Airways. Jet Airways' net profit Rs 850 mn in Oct-Dec 2012; revenue up 6.6%| |
Jet Airways (India) Ltd reported a Profit After Tax (PAT) of Rs 850 million in the quarter ended December 31, 2012, as against a net loss of Rs 1,012 million in the same period in the preceding year. Its revenue rose by 6.6 per cent to Rs 4.05 million in the same quarter, as compared with the corresponding period in 2011. The airline ferried 4.05 million revenue passengers in the period under review, which lifted its average gross revenue per passenger yield by 18.6 per cent year on year. Domestic traffic for Jet airways went down by 13.0 per cent for the October-December quarter in 2012, versus the same period in 2011. International traffic for the airline declined by 5.1 per cent in the same period year on year.
Jet Airways' low-fare carrier JetLite (India) Ltd's PAT for the third quarter of the financial year 2012-13 stood at Rs 81 million, versus a net loss of Rs 216 million in the same period in 2011-12. Its revenue in the quarter was calculated to be Rs 5,187 million over the same period in the year before. The airline's average gross revenue per passenger yield went up by 17.1 per cent.
Jet Airways and JetLite together reported a PAT of Rs 931 million in the quarter ended December 31, 2012, as against a net loss of Rs 1,228 million in the same period in 2011. Their total revenue stood at Rs 47,699 million, up by 5.5 per cent from the corresponding period in the year before.
London-based aviation analyst Saj Ahmad says that the deal will enable Jet to align with one of the fastest growing airlines that has a solid financial footing. "
Etihad's diverse stakes in other airlines like airberlin and codeshares with over a dozen airlines means that Jet Airways can leverage this partnership and grow its business inorganically and much faster than if they were to go it alone.
"Jet Airways will get a much needed boost while Etihad gains strategic entry into a long term growth market