Cash-strapped, troubled airline Jet Airways is understood to be tapping homegrown non-banking financial companies (NBFCs) to monetise its forward sales to raise around Rs 1,500-2,000 crore, sources in the know of developments told FE. Basically, all the bookings done through credit cards will directly go to the concerned NBFC. Roughly, bookings worth around Rs 1,600 crore are done through credit cards on Jet’s portal, which instead of accruing to the airline will accrue to the NBFC. The airline recently deferred its first-quarter results over unresolved issues over notes to account between auditors BSR Company and its board.
The carrier’s top brass have not been able to cut salaries of pilots for which an effort was made. Jet’s total revenues for FY18 stood at Rs 24,510.69 crore. According to details in Jet’s annual report, the airline has already entered into forward sales of Rs 3,686 crore, which is about 15% of its total revenues. Industry experts said for the deal to materialise, Jet will have to bolster its forward inventory sale, probably the reason why the troubled airline is announcing big sales for big discounts, recent example being the “freedom sale” for selling discounted inventory. Jet’s accumulated losses as on March 31, 2018, stand at Rs 10,772 crore with a negative net worth of Rs 7,139 crore and cash and cash equivalents of Rs 321 crore.
17/08/18 Financial Express
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The carrier’s top brass have not been able to cut salaries of pilots for which an effort was made. Jet’s total revenues for FY18 stood at Rs 24,510.69 crore. According to details in Jet’s annual report, the airline has already entered into forward sales of Rs 3,686 crore, which is about 15% of its total revenues. Industry experts said for the deal to materialise, Jet will have to bolster its forward inventory sale, probably the reason why the troubled airline is announcing big sales for big discounts, recent example being the “freedom sale” for selling discounted inventory. Jet’s accumulated losses as on March 31, 2018, stand at Rs 10,772 crore with a negative net worth of Rs 7,139 crore and cash and cash equivalents of Rs 321 crore.
17/08/18 Financial Express
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