The end of the road for Jet Airways could be nearer than ever, going by a latest tweet from the CEO of Grant Thornton India, Vishesh Chandiok.
The tweet capped the final tumultuous lap for the airline that had blazed many a trail in one of the world's fastest-growing air travel markets but has been struggling to get back on track for a long time now.
It was the "proverbial chicken or egg that killed the carrier", Chandiok tweeted. He also offered an apology to Jet's employees for whom "Grant Thornton could not do better".
Last year, lenders to Jet Airways named Ashish Chhawchharia of Grant Thornton India as the resolution professional (RP) for the airline’s bankruptcy proceedings.
The Naresh Goyal-founded carrier had an almost unhindered flight till 2003-2004 until Air Deccan, with its rock-bottom fares, came to the scene. As Jet kept shifting between low-cost and full-service models, it underestimated competition from budget carriers, which eventually contributed to its fall.
The airline suspended operations on 17 April, 2019, and the focus shifted on the bank-led process of Expression of Interest (EoI) and subsequent change of ownership along with equity infusion.
Many argue that Jet’s financial problems started with Goyal buying out rival Air Sahara in 2007 for Rs 1,450 crore. This was a deal that gave Jet endless problems – financial, legal and human resource-related.
09/03/20 Economic Times
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The tweet capped the final tumultuous lap for the airline that had blazed many a trail in one of the world's fastest-growing air travel markets but has been struggling to get back on track for a long time now.
It was the "proverbial chicken or egg that killed the carrier", Chandiok tweeted. He also offered an apology to Jet's employees for whom "Grant Thornton could not do better".
Last year, lenders to Jet Airways named Ashish Chhawchharia of Grant Thornton India as the resolution professional (RP) for the airline’s bankruptcy proceedings.
The Naresh Goyal-founded carrier had an almost unhindered flight till 2003-2004 until Air Deccan, with its rock-bottom fares, came to the scene. As Jet kept shifting between low-cost and full-service models, it underestimated competition from budget carriers, which eventually contributed to its fall.
The airline suspended operations on 17 April, 2019, and the focus shifted on the bank-led process of Expression of Interest (EoI) and subsequent change of ownership along with equity infusion.
Many argue that Jet’s financial problems started with Goyal buying out rival Air Sahara in 2007 for Rs 1,450 crore. This was a deal that gave Jet endless problems – financial, legal and human resource-related.
09/03/20 Economic Times
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