Etihad Airways has confirmed it aims to make equity partner Jet Airways profitable in three years.
The turnaround plan includes a range of “critical measures” such as long-term network, fleet and product developments to “optimise the airline’s domestic and international operations”.
The re-structuring will see new routes to markets in Europe, China, Australia and South East Asia, as well as expanded frequencies on existing services and additional codeshares.
Jet Airways has not posted a profit since March 2007 and in May set out a three-year restructuring plan centred on cost cutting.
The airline has faced issues such as a weak economic climate, volatile fuel prices and the rapid growth of low-cost carriers in India.
Jet’s chairman Naresh Goyal, said: “Tough measures were needed to ensure Jet Airways’ long-term future, maximise its partnership with Etihad Airways, and enhance the benefits this partnership offers to passengers.”
He added: “Our international operations are already profitable and contribute 45 per cent to our total revenue. We will continue to build on this strong foundation as part of our three-year turnaround plan and increase the contribution to 63 per cent by 2015.”
James Hogan, president and CEO, Etihad Airways, said: “India represents a considerable opportunity for airlines worldwide, with more than 42 million international travellers reported last year and impressive future growth rates predicted by IATA.
“The challenge is ensuring that our industry is efficiently catering to rising demand, not only in India’s major destinations, but also smaller cities that remain largely unconnected and underserved.”
Etihad Airways currently operates 112 flights a week to 10 Indian destinations.