We live in interesting times. Over the years, several Indian airlines' liveries have slipped into oblivion. From low-fare pioneer Air Deccan in both its avatars (low cost and regional) to Kingfisher, Sahara, Damania, ModiLuft, NEPC and more.
And now, it is Jet Airways which is coming close to a grinding halt the second time around. Back in 2013, when they had a financial crunch, the Middle East carriers were on a high note, and FDI in Indian aviation was enabled at right about the time when Jet Airways needed the fund infusion.
For Jet Airways, in their Silver Jubilee year, the airline is battling with what is their biggest existential crisis at the moment. What started about six months ago as a default on paying salaries to employees has now translated into a full-blown crisis which continues to throw new surprises every day for all the stakeholders, including employees, customers and other.
Almost half the airline’s fleet is grounded, customers find out about flight cancellations last minute, and the airline is not able to do much for them. Naresh Goyal’s word was taken seriously for the first few months till it was not an issue that was connected to the lenders. The airline was still flying, albeit with hiccups. But now, he is unable to keep his word on the timeline of resolution for this situation. For instance, he assured employees that by 18 March the situation would ease up. On 18 March, he extended the deadline sine die, stating it was taking time to make things work.
At the heart of the salvage of the airline is the continued desire of the airline’s current promoter, Naresh Goyal, to hold on to the airline in some capacity or another. I empathized with him last year, after all, Jet Airways is all he has to show for his life’s work. But now, it looks more and more like his personal ambition is holding the airline back from resurrection. He is playing hardball, but so is everyone else. And then when he had almost lost it all, he came around with an offer to invest Rs 750 crores in the airline to hold on to the promoter status.
29/03/19 Ajay Awtaney/First Post
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And now, it is Jet Airways which is coming close to a grinding halt the second time around. Back in 2013, when they had a financial crunch, the Middle East carriers were on a high note, and FDI in Indian aviation was enabled at right about the time when Jet Airways needed the fund infusion.
For Jet Airways, in their Silver Jubilee year, the airline is battling with what is their biggest existential crisis at the moment. What started about six months ago as a default on paying salaries to employees has now translated into a full-blown crisis which continues to throw new surprises every day for all the stakeholders, including employees, customers and other.
Almost half the airline’s fleet is grounded, customers find out about flight cancellations last minute, and the airline is not able to do much for them. Naresh Goyal’s word was taken seriously for the first few months till it was not an issue that was connected to the lenders. The airline was still flying, albeit with hiccups. But now, he is unable to keep his word on the timeline of resolution for this situation. For instance, he assured employees that by 18 March the situation would ease up. On 18 March, he extended the deadline sine die, stating it was taking time to make things work.
At the heart of the salvage of the airline is the continued desire of the airline’s current promoter, Naresh Goyal, to hold on to the airline in some capacity or another. I empathized with him last year, after all, Jet Airways is all he has to show for his life’s work. But now, it looks more and more like his personal ambition is holding the airline back from resurrection. He is playing hardball, but so is everyone else. And then when he had almost lost it all, he came around with an offer to invest Rs 750 crores in the airline to hold on to the promoter status.
29/03/19 Ajay Awtaney/First Post
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