Mumbai: Jet Airways (India) Ltd said on Monday its board has given an in-principle approval to take a stake of up to 26 percent in Hyderabad-based MAS GMR Aerospace Engineering Company Pvt Ltd.
MAS GMR Aerospace is an equal joint venture between Malaysian Aerospace Engineering SDN BHD and GMR Hyderabad International Airport Ltd.
It was set up to undertake airframe maintenance, repair and overhaul activities, the airline said in a statement to the BSE.
Jet flies into Rs 106-cr profit in Q3
Led by a spurt in the domestic air traffic and massive cost cutting, Jet Airways returned to profits in the December quarter with a Rs 105.80-crore net profit against Rs 214.18-crore loss in the year-ago period.
The Naresh Goyal-promoted airline, however, registered a 4.5 per cent fall in its total income at Rs 2,885.59 crore during the reporting quarter, compared to Rs 3,022.83 crore in the same quarter last fiscal.
The seat factor (flight occupancy) jumped to 80 per cent in the reporting quarter significantly up from 66.2 per cent in the year-ago period. The airline carried 3.41 million passengers during the period.
The airline brought down its employee cost to Rs 289.76 in the latest quarter, compared to Rs 364.87 crore in the corresponding period last fiscal. The fuel expenses also came down to Rs 887.86 crore from Rs 1,094.03 crore.
The airline earned Rs 106.43 crore from aircraft leasing. It currently has four Boeing 777s leased to the Turkish Airlines.
The quarter saw 56 per cent of the revenues coming from international operations while the rest from the domestic service.
Jet Airways`s low-cost arm JetLite recorded a profit after tax of Rs 3.9 crore in the third quarter, against a loss of Rs 22 crore in the corresponding period last fiscal.
JetLite`s revenues declined to Rs 431.8 crore in the quarter ended December against Rs 474.1 crore in the year-ago period.
The airline board also gave an in-principle approval to pick up up to 26 per cent in MAS-GMR Aerospace Engineering Company, Hyderabad. However, the airline did not give any further details of the investment.
MAS-GMR Aerospace Engineering Company is a 50-50 joint venture between Malaysian Aerospace Engineering and GMR Hyderabad Airport. The JV was set up to under take airframe maintenance, repair and overhaul activities.