Tuesday, August 14, 2018

Jet Airways, India’s oldest private airline, is struggling to keep flying

Just a few months ago, Jet Airways was being seen as a potential suitor for debt-laden Air India.
Now, India’s oldest privately owned airline is struggling to stay in the air.
Since the beginning of this month, the company has stumbled from one piece of bad news to another.
First, there were reports of Jet Airways trimming employees’ salaries to cut costs. Then the Mumbai-headquartered company deferred the announcement of its financial results. Now the civil aviation regulator has reportedly decided to audit it.
All this comes just months after the airline posted massive losses owing to a weak rupee and high fuel prices. Already, its shares have fallen around 58% since April, when it posted a loss of Rs 10,360 crore ($1.49 billion).
The first signs that Jet Airways had flown into rough weather emerged on August 2, when it was reported that the company was considering pay cuts of up to 25%. The company did not respond to Quartz’s specific queries on this plan.
14/08/18 Kamalika Ghosh/Scroll.in

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