Jet Does not See Big Revenue Fall Due to U.S. Downgrade
February 11, 2014 3:05 PM EST
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.
A Jet Airways passenger plane (Reuters)
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.
Most Popular Slideshows
- Kate Middleton First Official Solo Trip: Details For Malta Tour Revealed [PHOTOS]
- 2014 MTV Video Music Awards: Full List Of Winners, Miley Cyrus ‘Wrecking Ball’ Bags Video Of The Year [PHOTOS]
- Manny Pacquiao Vs. Chris Algieri World Tour Kick Off Press Conference In Macau [PHOTOS]
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
Join the Conversation
- United Airlines Flight Diverted as Passengers Fought Over Anti-Seat Reclining Device
- ISIS Posts Threats On Twitter, Works Around California Earthquake Hashtags, Pressures US To Respond To #StevensHeadinObamasHands
- Iceland Volcano: Bardarbunga Stricken by 5.7 Magnitude Earthquake But Still No Eruption, Magma Could be Going Elsewhere
- Chicago Marathon Brings Over $253 Million in Business
- New Zealand's High Growth Rate Predicted To Fall When Christchurch Rebuild Halts
- Apple on iPhone 6 Release Date One Week After September 9 Despite Display Shortage Starting $800
- James Foley Video Had A Change Of Actor – Expert Points Out
- Canada Concerned About Russia’s Military Expansion in Arctic
- Nokia X2 vs. Nokia Lumia 530 - Specifications, Features And Price Showdown
- Trending: Ice Bucket Challenge Replaced By Rubble Bucket Challenge By People Of Gaza
- Hundreds of Men Rape Teen for Three Years
- Nexus 6 Release Date Will Intro Android 5.0 aka Lemon Meringue Pie with Killer Specs & Features