Thursday, November 01, 2018

Mckinsey to draw up Jet’s turnaround plan

Mumbai: Jet Airways has appointed global management consulting firm McKinsey & Co to help it chart a turnaround plan even as India’s second-biggest airline struggles to stay afloat and chairman Naresh Goyal approaches peers for infusion of funds.
A senior executive at the airline confirmed that Jet has appointed McKinsey for advising it on cost-cutting measures across functions. It has also roped in Boston Consulting Group to help it with revenue enhancement measures, he added.
The two global consultants have come on board at a time when Jet is grappling with a wide range of problems—financial and operational. It has delayed salaries, grounded at least eight planes, retrenched at least 20 managers, and allegedly featured in watch-lists of its lenders for likely defaults.
“As communicated earlier, Jet Airways is already engaged in implementing the various elements of its turnaround strategy. Such initiatives typically require inputs from external advisers/specialised consultants,” a spokesperson told ET.
Jet has appointed consultants in the past, including global turnaround management expert Alvarez and Marsal, which worked with the airline for 15 months until 2015. Seabury Group had also come on board in 2013 just after Etihad Airways bought a 24% stake in the airline.
01/11/18 Kala Vijayraghavan, Anirban Chowdhury/Economic Times

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