Airliners-India

Aiel · Member Joined: 19 Dec 2006 Posts: 927 Location: Bangalore

Jet Airways India May Post Profit on Lower Fuel Costs

Jet Airways (India) Ltd., the country's biggest carrier, may report its first profit in three quarters, helped by lower fuel prices and income from the sale of an aircraft.

Jet Airways will post net income of 138 million rupees ($3.1 million) in the three months ended Dec. 31, compared with 610 million rupees a year ago, according to the median estimate in a Bloomberg survey of seven analysts. The airline had losses totaling 1 billion rupees in the preceding two quarters.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aHxRt4b_PSwQ&refer=home
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COUGAR · Member Joined: 01 Jan 2007 Posts: 986 Location: Bangalore

Rather Notional profit: coming from some creative accounting and financial jugglery like sale and leaseback on some of their 737's. Meanwhile there are stories going around of cash flow problems with leasors and catering people.
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Nimish · Posted: Tue Jan 16, 2007 10:15 am Post subject:

JumboJet · Posted: Tue Jan 16, 2007 10:44 am Post subject:

Leasors even i have heard, a fact.
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Jaysit · Member Joined: 19 Dec 2006 Posts: 4346

AKLDELNonstop · Member Joined: 19 Dec 2006 Posts: 1066 Location: Auckland

Nimish I believe they have indeed agreed on a sale and leaseback atleast for their 330s.

And I agree with the above opinions that this profit shouldnt really be justifed as profit as it is a one off event and nonrevenue based. However, its a method commonly used by companies around the world to make their books look better than they actually are in not so good times.

Yay I passed accounting 101.

Cheers
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VABBy · Member Joined: 19 Dec 2006 Posts: 823 Location: DEL

Bt then the question is the cost factor?? U have sold ur plane on a profit and then leasing it back so wont the cost of operating that thing will go up because besides the operation expenses u need to pay up for the lease.

U might be earning a bit of a profit bt at the end of day ur paying through ur nose to have that widebody jet with u since there is a shortage of the same.
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AKLDELNonstop · Member Joined: 19 Dec 2006 Posts: 1066 Location: Auckland

starvmgopal · Posted: Wed Jan 17, 2007 9:13 am Post subject:

Hopefully since fuel prices went down a bit they will be in teh green. But I hope they start up their USA services earlier than August since they will catch the summer rush from May-August if they start earlier.

Aren;t they getting their first B777 in March or April???why wait till august for EWR??? Do they have to give the A340s back to SAA and need the B777 for the LHR routes? Anyone to shed light?
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the_380 · Posted: Thu Jan 18, 2007 11:43 pm Post subject:

Jet Airways is supposed to come out with its results today. Wonder how much they must have manipulated. Rolling Eyes

Flight occupancy decreased, higher ATF prices, lesser ticket expense.... Rolling Eyes

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sri_bom · Member Joined: 22 Dec 2006 Posts: 2365 Location: Singapore

Jet Airways launches new payment and ticketing service

BOMBAY - Jet Airways has launched an Interactive Voice Response (IVR) based payment and ticketing service.

This service has been launched through Jet Airways call centres, whereby customers can book and pay for their E-Tickets over the IVR system.

Customers can complete their reservation with their credit cards through a secure gateway and instantly receive their E-tickets via email.

Jet Airways has also introduced a “Pay Online” service, allowing passengers to pay for and issue e-ticket against an already created booking.

VABBy · Member Joined: 19 Dec 2006 Posts: 823 Location: DEL

They have posted a profit of 40 Crores in the 3rd Quater compared to Losses in the previous quaters. The yeild from the domestic routes have gone down while the same have increased on the international routes.

Due to zero or min competetion we are seeing an increase in yeilds on the international routes. I believe once the fare war starts on the international front we can witness yeilds going down there too. The rate at which additional aircrafts are being added have also come down.

9W will start its US ops from August 2007

http://economictimes.indiatimes.com/News/News_By_Industry/Transportation/Jet_posts_Rs_40-cr_profit_in_Q3_to_fly_to_US_in_August/articleshow/1324679.cms
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15a · Member Joined: 19 Dec 2006 Posts: 271 Location: Bangalore

There is a lot more detail on their results on the Jet site. The interesting things that i picked up
a) Their domestic load factors have dropped vs same period last quarter despite a marginal increase in capacity (9W capacity is up 14% vs all carrier capacity up 44%) - their domestic passenger growth is not keeping pace
b) Their international seems to be doing well - ATQ-LHR is 70% load factor (no wonder its becoming 6 times a week)
c) They have stated they want to start Ahmedabad-LHR from March with their second A332.
d) While their international schedule to US is known (New York from August, San francisco via Shanghai and Toronto via Europe in 2007), they have also said they want to fly to "East and South Africa" which i thought was interesting

COUGAR · Member Joined: 01 Jan 2007 Posts: 986 Location: Bangalore

Lets take a look at facts here: The leaseback has undoubtedly helped bring in some much needed cash and helped tide over their cash-flow problems to an extent and even allowed them to show some "notional" profits. But the cost of operations has gone up since lease charges are obviously to be factored in! This combined with the fact that yields on its domestic sectors have gone down. 9W sells a large proportion of its seats in the 4 lowest fare buckets while IC sells barely 40% of its inventory in those same 4 classes: so market leadership is obviously coming at the cost of yields and profitability.

Their intl ops have not yet broken even according to their CEO who was interviewd on CNBC asia, though they "are no longer bleeding on these routes". Only ATQ-LHR is profitable as of now, and they are being killed on yields on BOM-LHR as well as on their ltd Far-Eastern routes.

Now considering that their cost of domestic ops has gone up because of the leases, yields have crashed and they are loosing money on intl ops, where are these profits coming from? The leaseback option is certainly helping to show these profits and thus help save their face at the stock market where they are taking quite a beating, but this is clearly not helping them in the long term.

9W, i am afraid, is clearly going the EastWest way. And I can already see the IC guys grinning from ear to ear!
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