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Moneycontrol News
The troubled airline Jet Airways reportedly called for a moratorium on borrowing from banks and new capital to deal with a shortage of cash.
According to a report on Bloomberg, Jet Court is short-term. Debt represents 46% of the total debt, the highest of its Asian competitors. Jet Airways hopes to reduce its costs by 2,000 rupees over the next two years, the report says.
The airline, one of the first private actors of the Indian commercial sector, takes measures to reduce its costs
Jet Airways plans to give up auxiliary personnel, the reduction of wages and the injection of capital, the report quoted a manager as saying. Earlier reports indicate that the airline has asked its staff to accept pay cuts and immobilized close to a dozen of its aircraft.
The company also plans to sell its stake in its loyalty program, JetPrivelege. It owns 49.9% of the capital of JetPrivilege, the rest being held by Etihad Airways, based in the United Arab Emirates. According to the report, Blackstone Group LP and TPG were in talks to acquire the stake in JetPrivelge, but no agreement has yet been finalized.
The banks asked the airline for a detailed proposal for the sale of its shares, the report said.
Fierce competition, rising exchange rates, discounting banknotes at its lowest denominator and the price of jet fuel in India, one of the highest in the world, are determining factors for corporate profits. India, despite an increase in the number of air pbadengers.
The report says that after the financial meltdown with Kingfisher Airlines, the banks ruled out previous Jet Airways subsidies to get more capital.
During the past year, its market capitalization was $ 325 million.
The net debt of the airline amounted to 7,360 million rupees as of June 30, 2018, of which 65% in dollars, according to the same source. a statement by CFO Amit Agarwal in August.
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