Jet Lost 40 mn USD ... Datta

[jimmygill]

A grim Executive Director Saroj Dutta revealed to mediapersons Sunday afternoon that on an average the airlines is patronized by nearly 24,000 passengers daily across its network spanning domestic and international sectors.
"On an average, our daily revenues are in the range of $8 million (Rs.40 crore), so you can calculate how much we stand to lose for the past five days," he said.

Can we calculate? The newspapers reported around 40% flights cancellation, lets make it 50% flights cancelled. So a 50% revenue lost... thats is when the flights that operated continued to have the same load factor as they used to carry before the strike.

So daily revenue loss should be $4 mn. Since the aircraft that didn't operate, didn't consume any fuel and fuel is somewhere around 25% of operating cost. I will make the net loss $3 million.

I will assume landing charges and parking charges to be same for a day, so will not adjust that factor.

Mr Datta is highly paid employee of Jet airways, and he should report big losses. But what about that news reporter, could not he/she have devised a more responsible/neutral headline.

Reminds me of Jefferson Airplane's, "Feed your head, feed your head".

[Wannabe Flyer]

I think he was saying they lost revenue of $8 Million per day adding upto about 200 crs of loss over 5 days.

Read todays eco times where he has used the same points as you have where he says there are many operating costs they were losing on such as ATF etc that actually will reduce this loss.

No guess that they might have learned which flights to pull which means how many more to deroster!!!

[jimmygill]

I will appreciate if you can send me the link... I am searching the article myself.

Overall Jet Airways does a business of 8mn tonne kms a day (approx), and if for some unavoidable reason they are not doing business on any one day and they report a revenue loss of 8mn USD, that gives us a very simple figure of 1$/tonne.kms (Calculated approx 1$ 9c).

Considering the fact that they never cancelled more than 250 (out of 450) flights, and they operated the choicest remaining flights they could, I should not be overly wrong to state that the figures are saying something like $2.2 per ton/km revenue (or revenue loss assuming 50% flights operated at normal passenger load factor).

Each passenger and his luggage is approx 0.1 tonne, distance between Bombay and Delhi is and Bombay is 1,135km, a ticket at that rate should cost
approx USD 500. If Mr Datta was mopping 500 USD for a return DEL-BOM ticket for all his passenger, then I believe all his passengers were travelling business class (premier), Is that believable, not to me. All managers who are visible in media, are paid to lie. Hence, I am not surprised that he will lie in media to garner passenger sympathy, I just wonder why he will be so obsessed with pilots and ignore the investor sentiments.



P.S. Revenue loss doesn't equate to profit loss,
Net loss due to not operating = fixed cost + aircraft on ground cost

and if the airline was making losses
Net loss due to not operation = fixed cost + aircraft on ground cost - normal losses

BTW Jet carries approx 39,000 passengers daily (Jet + JetLite Domestic + International)

[Wannabe Flyer]

Just stating what I read in eco times of the day in questions. Did not do an in depth validation of numbers. Either way I am sure he will pull the rug from a few flights as some savings must have been there.;)