The Hindu Business Line : Jet Airways awaits nod for US flights

FLYING HIGH: Mr Naresh Goyal (left), Chairman, Jet Airways, and Mr Victoriano P. Dungca, Director, at the company's 13th annual general meeting in Mumbai on Tuesday. - Shashi Ashiwal

Mumbai , Sept. 27

JET Airways will commence operations to the US as soon as it receives approval from the US Department of Transportation.

The airline plans to fly to more international destinations in Europe, the US, Africa and the Far East as it expands its fleet in the coming years, said Mr Naresh Goyal, Chairman, Jet Airways, at the company's AGM here on Tuesday, the first since its initial public offer.

The airline would add 10 Boeing 737s, 10 A330s, and 10 Boeing 777 aircraft to its fleet over the next three years.

The acquisition of aircraft would be funded through borrowings from the US Exim Bank, the European Export Credit Agency, as well as through internal accruals, he said.

The company's growth strategy would be to remain a full service airline providing value to full-fare and business passengers. Further, the airline would target leisure travellers with promotional schemes.

"We are competing with new entrants on quality service and we will neutralise the impact of low fares with the recently introduced yield and revenue management systems," he said.

The company would introduce an Employee Stock Option Scheme (ESOP) by the year-end, he added. Following the IPO this March, the promoters' stake stood at 80 per cent of the company's equity, while the Indian public holds 4.27 per cent.The company will pay shareholders a dividend of 30 per cent on the paid-up equity capital of the company, which translates into an outflow of Rs 29.53 crore.

The scrip closed the session on Tuesday at Rs 1,137.65, as against the previous close of Rs 1,112.60.

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