Sunday 30 December 2018
INDIA: Jet Airways And Its Woes
In additoin to financial problems, Jet Airways has as well had ups and downs over safety and tax issues.
Jet Airways has been in the red for two consecutive quarters and is also under market regulator Securities and Exchange Board of India’s (SEBI) lens.
Jet Airways issues are not particular to the airline but symptomatic of a larger malaise. The Indian aviation sector is facing economic headwinds in the form of rising global oil prices and a depreciating rupee.
Jet, for instance, had debt of Rs7,364 crore ($1.01 billion) on its books as of June.
Given its precarious financial position, the airline was reported to have even considered slashing salaries. On Sep. 19, it announced that there would not be free meals on economy class bookings done from Sept. 25.
Things have gone wrong with India’s second-largest carrier by market share in the last six months.
March 2018, Jet Airways reported a loss of Rs1,036 crore in the Jan-March quarter as revenue declines and costs increase significantly. The company defers the March salaries of some employees citing circumstances beyond its control.
April 2018,Gave up bidding for Air India citing the complex process.
May 2018, Government refused to approve Jet’s merger with its subsidiary JetLite, nearly three years after the proposal was made.
June 2018, Jet announced new check-in baggage norms. The 15kg of free check-in luggage for economy class will have to be in one bag. Business class passengers can carry 30kg in two bags.
August 2018, Considers a 25% pay cut for employees.
August 2018, Indefinitely defers announcement of financial results for the April-June quarter of financial year 2019.
August 2018, On Aug. 12, the Directorate General of Civil Aviation announces an audit to assess Jet’s financial health. State Bank of India asks the firm to provide enough collateral for emergency funding.
August 2018, On Aug. 27, the company announces losses of Rs1,323 crore for the April-June 2018 period.
September 2018, On Sep.19, the income-tax department conducts surveys in the company’s Mumbai and Delhi offices over allegations of financial misappropriation.
September 2018, On Sep. 20 about 30 passengers on a Jet Airways flight from Mumbai to Jaipur suffer nose and ear bleeding after the cabin crew forgets to activate the internal pressure control. India’s civil aviation minister Suresh Prabhu orders a safety audit of all airlines and airports.