India's Jet Airways seeks to reassure investors with cost-cutting plan

India’s Jet Airways Tuesday set out to reassure investors it was taking measures to cut costs and boost revenue, a day after the beleaguered airline reported its second consecutive quarterly loss. Jet has been facing financial difficulties but has said it is confident it can slash costs and keep flying, dismissing reports it had told staff it was running out of cash. India is the world’s fastest-growing aviation market, but rising fuel prices, a weaker rupee and price competition has pulled down airline profitability.“The Indian aviation sector, although witnessing steady and robust traffic growth, has been passing through a tough phase,” Jet’s CEO Vinay Dube said. “Airlines have been unable to pass through this increased cost to consumers by increasing fares,” Dube said, adding the industry could not sustain such low fares in the long run especially with fuel prices rising. Dube said the company and its auditors were not in disagreement over the financial results, and that Jet’s account with its lenders was “standard” - indicating there had been no delay in meeting loan obligations. Jet, on Tuesday, also said it would invest in its business, cut costs in excess of 20b rupees ($285m) in two years, and planned to raise funds by selling a stake in its frequent flyer program. Some of the savings will come by reducing its maintenance and interest costs, sales and distribution expenses and rationalizing its fleet.<br/>