Monday, September 03, 2018

Jet’s annual losses may widen to $500 million says CAPA, moots ownership change for long term viability

Mumbai: Jet Airways is headed for a full year loss of $500 million and a change of ownership may be necessary to secure its long-term viability, Centre for Asia Pacific Aviation (CAPA) India said in a report on the Indian airline industry.

“Restructuring of Jet Airways [is] must to address the long-standing neglect of its domestic operations and find permanent fixes; a change of ownership may be necessary to secure Jet’s long-term viability,” the aviation consulting firm said.

It said the high losses would continue. And based on its losses of about $185 million in first quarter of 2019, the carrier may be headed for a full-year loss in excess of $500 million (possibly higher should oil prices increase further) in the absence of asset sales or other income.

“Restructuring has not improved financials. Jet Airways has been in perpetual restructuring mode for the last five years. But despite the notable improvements in productivity and reduction in non-fuel costs, this has not delivered a financial turnaround,” it said.
03/09/18 Lalatendu MIshra/The Hindu