New Delhi, March 14, 2005
Money Control
Jet Airways saw a very lukewarm listing this morning,
at Rs 1211 on the BSE and Rs 1155 on the NSE. Most
experts expected a listing between Rs 1300-1400. It
was issued at Rs 1100.
Jet Airways saw a very lukewarm listing this morning,
which some experts termed as "disappointing".
It listed at Rs 1211 on the BSE and Rs 1155 on the
NSE, while most experts expected a listing between
Rs 1300-1400. It was issued at Rs 1100.
However, Jet Airways CEO Naresh Goyal remains insistent
that his company will remain profitable, despite the
fierce competition. He told CNBC-TV18, "We have
already got a plan to induct capacity about 15% in
the next few years and this is for domestic. We will
be adding a few more destinations, where people come
for tourism or business traffic, and increase some
frequencies. I welcome the competition, and we already
have a business plan to deal with that traffic."
He added, "New opportunities in Indian aviation
have attracted and will continue to attract new players,
and I believe this will serve to expand the current
market by providing hitherto unavailable opportunities.
We will continue our efforts to be a world-class airline
recognised for service and reliability in India and
the destinations overseas. We are therefore confident
we will maintain our healthy profitability."
Goyal is confident that the new overseas operations
will remain profitable, though he did not comment
on what kind of fares Jet would charge. "We have
been given permission to operate to Singapore, Kuala
Lumpur, New York and London, We are hoping to start
next month in a phased manner. US and London begins
hopefully between April and June. We will be flying
the 737-800 with better seats in business class to
Singapore, Kuala Lumpur and the wide body to London
and New York. We will be operating profitably."
He added, "The real opportunities are still
in front of us. The Indian air travel market is highly
under-penetrated, with just 15 million passengers
last year. There is renewed interest of international
investors in Indian business and the Indian capital
market, expansion of industrial activity within the
country, enhanced tourist interest as a result of
government and private promotion of India as a tourist
destination. Large investments in airport and other
aviation infrastructure and favourable changes in
the regulatory policies are bound to result in the
growth of the Indian aviation industry."
