Pages

Tuesday, February 5, 2019

Jet Airways Crisis - How things went from bad to worse for Jet Airways


Jet Airways Ltd has debt exceeding 80 billion rupees ($1.12 billion) as of Sep 2018, has been steadily losing market share to its rival and low-cost carrier IndiGo, which is owned by InterGlobe Aviation Ltd.

Cash-strapped Jet Airways Ltd has flown straight into a storm, resulting in a major setback for India's largest full-service airline that could shake up the country's aviation industry.

Abu Dhabi-based Etihad Airways, Jet's second-largest shareholder, is now in talks with creditors for a deal that could help the airline back on its feet

In Oct 2018 Rating agency ICRA downgrades the company's long term loans and NCDs, citing impact of steep increase in jet fuel prices, rupee depreciation, delay in implementation of liquidity initiatives

In Oct 2018 U.S.-based Delta Air Lines Inc expresses interest to buy Jet stake from promoter Naresh Goyal and Etihad Airways

In Dec 2018 ICRA cuts Jet rating yet again, cites delays in implementation of the proposed liquidity initiatives by Jet's management

No comments:

Post a Comment