Jet Airways gets a new CEO Cramer Ball after loss of Rs 4,129 cr in FY14

Naresh Goyal-led Jet Airways appointed former Etihad Airways official Cramer Ball as chief executive officer (CEO) on Tuesday after reporting its highest- ever annual loss of Rs 4,129 crore for FY14. Net loss for the fourth quarter widened to Rs 2,153 crore. Struggling under high expenses and adverse operating conditions, Jet was forced to adopt tough measures to lower costs and achieve profitability with a three- year business plan.

The decisions, which included Ball's appointment, cleaning up of the balance sheet, pruning of overvalued assets, cost restructuring and changes in service and fleet plans, were taken at a Board meeting attended for the first time by representatives of Abu Dhabibased Etihad, which has acquired 24- per cent strategic stake in the domestic carrier.

It is the fifth straight quarterly loss for the airline. These are the biggest ever losses suffered by Jet, which had last reported a full- year profit in fiscal 2010- 11, when it posted a meagre profit of Rs 9.69 crore on standalone basis although it was in losses on consolidated basis at that time also.

Jet's fourth- quarter loss in 2012- 13 was Rs 495 crore while its consolidated full- year loss was Rs 779 crore. For the 2013- 14 fiscal, Jet reported operating loss of Rs 2,076.2 crore. Goyal said, " We need to take stringent measures to ensure our success in this challenging and competitive aviation industry. There can be no short- term solutions.

The changes required will take time to implement."

Courtesy: Mail Today