Annual Report cb smile - Jet Airways

Directors’ Report (contd.)
2. Dividend
The Board of Directors has not recommended a dividend on the Equity Shares in view of the performance of the
Company for the financial year ended 31 st March, 2010 (Previous year: Nil per Equity Share).
3. Review of Operations
The Company was able to redesign its business model and emerge as a leaner, more efficient and responsive organization.
A series of planned steps that were taken during the year ensured that the Company remains competitive through
stringent cost control, route rationalization and fiscal prudence, whilist constantly introducing strategic marketing and
route initiatives without affecting the quality of the product offered. We are pleased to inform you that the benefits of
these measures have translated in the Company consolidating its leadership position with a market share of 25.2% during
the year.
During the year under review, there was a progressive recovery in the aviation industry, both in India and overseas though
at a more rapid rate than previously anticipated. This was primarily owing to the faster growth of the Indian economy and
the fact that major economies came out of recessionary trends. The third and fourth quarters of the financial year
recorded encouraging passenger and cargo traffic growth.
However, both domestic and international markets remained competitive, and there was significant over capacity in both
markets.
Domestic passenger traffic for the year under review, reported a 4.2% growth as compared to the same period last year
while international passenger traffic registered an increase of 20.1%. The Company ended the financial year with
revenues of Rs.1,062,292 lakhs a decrease of 10% versus last year, with a system-wide seat factor of 71.6% on the
domestic and 80.4% on the international sectors.
The Company carried 120 lakhs revenue passengers on its international and domestic services during the year
under review, up from 110 lakhs in the previous financial year. But perhaps the most encouraging has been the
improvement in the EBITDAR margins from 3.5% to 19.2% mainly due to improved yields, growth in traffic and cost
efficiencies.
The introduction of ‘Jet Airways Konnect’ and ‘Jet Airways Konnect Select’ were our answers to the market demand
for quality, low-cost travel during the global economic downturn, which has been well appreciated by our guests.
The Jet Konnect flights use Boeing 737 and ATR aircraft and fly on both regional and trunk routes. As on
31 st March, 2010, approximately 65% of Jet Airways domestic flights were Jet Airways Konnect flights.
‘Jet Airways Konnect Select’ is specifically targeted at the business and leisure travelers who desire more flexibility,
comfort and benefits.
The Company also benefited from the strategic expansion of its domestic and international service network. We now
serve 23 international destinations, which include the recent addition of a daily non-stop service between Mumbai and
Johannesburg, South Africa. Our airline has also worked towards creating operational hubs in Mumbai and Delhi to offer
guests between third countries enhanced connectivity via these gateways. As part of our International strategy, we have
continued to increase frequencies to international points from several gateways in India thus enhancing our penetration
of the market.
15