Jet does not see big revenue fall due to U.S. downgrade

NEW DELHI Tue Feb 11, 2014 5:14am IST

A Jet Airways passenger aircraft takes off from the airport in Ahmedabad August 12, 2013. REUTERS/Amit Dave/Files

A Jet Airways passenger aircraft takes off from the airport in Ahmedabad August 12, 2013.

Credit: Reuters/Amit Dave/Files

Stocks

   

NEW DELHI (Reuters) - Jet Airways (JET.NS), the country's No.2 carrier by domestic market share, said on Monday it did not expect a big fall in revenue due to a recent rating downgrade of India's aviation safety by the United States.

Jet, which sold a 24 percent stake to Abu Dhabi's Etihad last year, is replanning its U.S. strategy after the downgrade, a senior company executive told analysts on a conference call. The airline posted a $43 million net loss for the December-quarter on Friday, its fourth straight quarterly loss.

The U.S. Federal Aviation Administration downgraded India's safety rating to Category 2 on January 31, meaning Jet and state-run Air India, the only two Indian carriers flying to the United States, cannot increase flights.

United Airlines (UAL.N), which had a code-share pact with Jet, said it was suspending placing its code on Jet flights effective February 1, following the downgrade. Jet currently operates seven flights a week to the United States.

"However, there is no restriction on Jet Airways placing its code on any U.S. carrier's flight, including United. So, we do not expect a big reduction in revenue because of this downgrade," Raj Sivakumar, senior vice-president of alliances and planning at Jet, said on the conference call.

"We are in the midst of replanning our strategy of offering consumers viable options into the United States over the coming days and weeks," Sivakumar said, without elaborating. He was replying to a question on whether Jet would use Etihad's network to add more flights to the United States.

(Reporting by Devidutta Tripathy; Editing by Prateek Chatterjee)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS EXCLUSIVE

REUTERS SHOWCASE

Modi In U.S.

Modi In U.S.

Obama, Modi work to deepen improving U.S.-India ties  Full Article | Related Story 

Factory Activity

Factory Activity

Factories expand at slowest pace this year in September  Full Article 

Videocon d2h IPO

Videocon d2h IPO

Videocon d2h files for up to $113 million IPOs  Full Article 

Asian Economy

Asian Economy

Asian factories slow in Sept, push inflation ever lower  Full Article 

EBay Divests PayPal

EBay Divests PayPal

EBay follows Icahn's advice, plans PayPal spinoff in 2015  Full Article 

New 'Windows'

New 'Windows'

Microsoft names next operating system 'Windows 10'.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage