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

   
Rajalakshmi (C), 28, smiles after winning the Miss Wheelchair India beauty pageant in Mumbai November 26, 2014. REUTERS/Danish Siddiqui

Miss Wheelchair India

Seven women from across India participated in the country's second wheelchair beauty pageant, which aims to open doors for the wheelchair-bound in modelling, film and television, according to organisers  Slideshow 

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)

REUTERS SHOWCASE

WTO Trade Deal

WTO Trade Deal

WTO clinches first global trade deal in its history  Full Article 

Kashmir Attack

Kashmir Attack

Ten dead in Kashmir's worst militant attack in more than a year  Read 

OPEC Meeting

OPEC Meeting

Saudis block OPEC output cut, oil price sinks further.  Full Article 

E-Commerce Boom

E-Commerce Boom

Online grocers come up trumps in India's e-commerce boom   Full Article 

GDP, RBI Preview

GDP, RBI Preview

GDP growth set to weaken, business wants reforms more than rate cut  Full Article | Related Story 

Jaitley to Rajan

Jaitley to Rajan

Jaitley likely to meet Rajan on Monday to urge rate cut  Full Article 

Banking Sector

Banking Sector

India moves to allow more businesses to offer basic financial services.  Full Article 

Jamini Roy

Jamini Roy

Photo Gallery – Bengali household name Jamini Roy’s paintings  Full Article 

Reuters India Mobile

Reuters India Mobile

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