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Jet Airways bankruptcy and rebirth 2.0
Read this article in ET that Jet will not last more than 60 days if employees cant take a pay cut. Has it really gone so bad for them?
I have 200,000+ JPMiles, should I go on a spending spree? If going bust is a very far fetched premise, what are the more realistic scenarios? Probably devaluation in the mileage chart. They have anyway reduced a lot of other privileges so not sure where they can cut more corners. Jet Airways has informed its employees that the airline will not be able to operate beyond 60 days unless cost cutting measures, which include pay cuts, are put in place, two executives confirmed to ET. Read more at: //economictimes.indiatimes.com/articleshow/65251532.cms?utm_source=contentofinterest&utm_medi um=text&utm_campaign=cppst |
Originally Posted by deepism
(Post 30042496)
Read this article in ET that Jet will not last more than 60 days if employees cant take a pay cut. Has it really gone so bad for them?
I have 200,000+ JPMiles, should I go on a spending spree? If going bust is a very far fetched premise, what are the more realistic scenarios? Probably devaluation in the mileage chart. They have anyway reduced a lot of other privileges so not sure where they can cut more corners. Jet Airways has informed its employees that the airline will not be able to operate beyond 60 days unless cost cutting measures, which include pay cuts, are put in place, two executives confirmed to ET. Read more at: //economictimes.indiatimes.com/articleshow/65251532.cms?utm_source=contentofinterest&utm_medi um=text&utm_campaign=cppst |
Don't forget Air Costa, Pegasus Airlines (India), & Paramount Airways fell silently defunct in the last 2 years.
Looks also as if EY had enough of 9W and are finally pulling out of the 9W partnership stake......double whammy for 9W! |
What I don't understand is why 9W is in such state. They are always expensive than other flights ( At least by 500 bucks on BOM- DEL sector ). Their flight is always full as well. Then what's the reason they are still not performing as well as the competition.
On international sector also the same story, more expensive than others and full flights (at least in J). |
High load factors does not necessarily translate profits to carriers. 9W's recent top shakedown & poor financial resource management is passed on to their staff consequently to pax. Apparently they have to return many aircrafts back to lessors due to unpaid debts. Story similar to KF, Air Costa, etc, Air lines business needs big bucks, deep pockets, long time contingency planning, etc. which I believe is never taken into serious consideration in Indian aviation business models. Remember what happened to these Indian carriers: ModiLuft, EastWest, Skyline NEPC, Damania, Vayudoot, Deccan, Gujarat Airways, Jagsons, Alliance Air, KF, Air Costa, Pegasus, Paramount, Sharaha, Archana Air, Etc..? |
I don't think they will go under anytime soon. They are just using this period of high oil prices to reduce operating costs. Over the years their costs have got very bloated. It got hidden due to low oil prices.
Some employees will take a pay cut & some will leave. This will help them to somewhat lower their costs. |
i don't expect them to go under as well but i also feel that 3 full service carriers in india is one carrier too much....i don't think there is enough demand for all 3 to exist in this market....
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Originally Posted by LH757
(Post 30044236)
... Apparently they have to return many aircrafts back to lessors due to unpaid debts. ... |
Looks like they've managed to get some extension on their payments from their creditors ? I don't see how long can they carry this on without significant restructuring of the business even if it means getting foreign investment. Etihad would probably want to offload their holdings, they wouldn't want to be 3/3 on bad investments (Alitalia, AirBerlin and now Jet) ?
I've got couple of upcoming flights on them, though I haven't paid for it so not that bothered. But it does limit the direct options from UK. |
Originally Posted by JamesKidd
(Post 30104203)
Looks like they've managed to get some extension on their payments from their creditors ? I don't see how long can they carry this on without significant restructuring of the business even if it means getting foreign investment. Etihad would probably want to offload their holdings, they wouldn't want to be 3/3 on bad investments (Alitalia, AirBerlin and now Jet) ?
I've got couple of upcoming flights on them, though I haven't paid for it so not that bothered. But it does limit the direct options from UK. |
This is pretty disturbing.. https://thewire.in/business/governme...oning-of-funds
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They are following right in the footsteps of KF. Naresh Goyal already lives in the UK so check that box too. :)
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Originally Posted by LH757
(Post 30043361)
Don't forget Air Costa, Pegasus Airlines (India), & Paramount Airways fell silently defunct in the last 2 years.
Looks also as if EY had enough of 9W and are finally pulling out of the 9W partnership stake......double whammy for 9W! Anyways, talking about Jet Airways, this is from today. It is a tough road for the airline. Time to use up those miles? Jet Airways reports Q1 loss at Rs 1,323 crore Read more at: //economictimes.indiatimes.com/articleshow/65566013.cms?utm_source=contentofinterest&utm_medi um=text&utm_campaign=cppst |
https://leehamnews.com/2018/08/27/pontifications-boeing-aid-to-jet-airways-uncommon-but-not-unusual/
Boeing returned cash deposits.... ouch ouch ouch. I suppose this will delay any privatisation plans GOI had for AI.... |
9W is selling its FFP in a desparate attempt to get 300-400 million $ FDI cash to stay afloat.
https://uk.reuters.com/article/us-je...-idUKKCN1M41AZ Unlike AB's topbonus which was sold in a similar way to EY to get cash without breaching the FDI limits, this time 9W is getting the money indirectly via private equity... |
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