Wednesday, October 24, 2018

Jet Airways seeks loan breather, funds

Jet Airways — the country’s second-largest airline — is understood to have asked banks for a moratorium on its loans apart from fresh funds to overcome its financial difficulties.

As on June 30, the gross debt on its balance sheet stood at Rs 8,620 crore, while net debt was placed at Rs 7,364 crore.

A Bloomberg report said Jet Airways has approached banks for a moratorium and has also asked for fresh funds. While the airline is in the midst of implementing a turnaround strategy which includes monetisation of its stake in its loyalty programme, the report said banks have sought more details on its proposal.

“The board-approved turnaround strategy is under implementation. The strategy encompasses various cost-reduction and revenue enhancement initiatives, including working on restructuring our balance sheet via debt-reduction, streamlining cash flows, payroll optimisation, exploring funding options such as capital infusion, monetisation of the company’s stake in its loyalty programme and several other measures to realise higher productivity and operational efficiencies,” a spokesperson for Jet Airways told The Telegraph.

“The airline will make announcements with regard to measures once finalised.”
While Jet Airways continues to be a standard asset in the books of banks, Amit Agarwal, deputy chief executive officer and chief financial officer, had told analysts in a conference after its first-quarter results that close to 65 per cent of its total debt is denominated in US dollars.
24/10/18 Telegraph
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