Wednesday, December 05, 2018

Jet Airways set to get new investor: says CEO to pilots

Jet Airways would bring on board a new investor in two-three months to help fund the airline, the company told its pilots at a meeting last week. Top officials of Jet Airways, led by chief executive Vinay Dube, offered the assurance on November 26, 2018 meeting with the pilots’ union, National Aviator’s Guild. The meeting was held to ease the nerves of pilots about various issues including salary delays.
Vinay Dube, who represented the management at the meeting, told the Jet Airways pilots that the airline will get an investor on board soon, likely within the next two-three months, as per the media sources. Dube also assured that salary delays are temporary and should be addressed in the next 45-60 days, and probably before the new investor comes on board.
Jet Airways, which had a ~13% share of the domestic aviation market in October, needs to urgently raise funds to stay afloat, as costly fuel and a weak rupee have hurt its financial health. The airline has delayed payment of salaries to a section of its staff, including pilots and senior employees.
Jet had a net debt of ₹8,052cr as of end-September. In August, the airline’s board approved a turnaround plan, which includes cutting costs by over ₹2,000cr over two years, leveraging its stake in loyalty programme Jet Privilege, improving pricing and capital infusion. Jet Airways had hired Goldman Sachs Group and Boston Consulting Group as advisers to achieve the above goals.
05/12/18 India Infoline