Turbulence not over for Jet

Bangalore: The amputation of Air Sahara from itself has not spelled the end of Jet Airways’ financial troubles.
The full service carrier may have steered itself clear of an overvalued takeover bid by walking out of the deal, but declining yields, continued losses on overseas operations, depreciating rupee, rising interest rates and operational costs and economic fallout of the failed Sahara deal will continue to haunt Jet for the next few quarters, and pull down its profits, says a research report of Edelweiss Capital.
After reviewing Jet’s financials and the current market conditions, the broking firm concludes: “We believe that the next two quarters will see a deteriorating bottomline.”
The authors of the report, Nikhil Garg and Gautam Sinha Roy, believe intense competition in the domestic market has put the yields of Jet under tremendous pressure.
03/07/06 Praveena Sharma/Daily News & Analysis

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