Jet Airways to report full year loss for 2007-08
14 Apr 2008
Hong Kong: Jet Airways is set to declare a loss for the fiscal year ended 31 March. It's founder and chairman, Naresh Goyal, has expressed confidence, however, that the airline will break even in the current fiscal, which ends the following March.
Goyal blamed start-up costs, arising from new overseas routes, and also fare wars amongst domestic airlines as being primarily responsible for all the red ink.
He declined to specify results, other than to say "we will lose" money.
The Bombay Stock Exchange-listed Jet Airways has been pushing hard to expand its international network. It has just added flights to the Gulf and, on Monday, to Hong Kong. It is waiting to start services to Shanghai as well.
According to Goyal, each new overseas route will take at least 18 months to pay for itself.
Goyal, who owns 80 per cent of the company, also said he plans to sell off 5-10% of his own stake "within the next month" to help raise capital.