Jet Going the Path of Kingfisher??

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Old Aug 3, 18, 3:43 am
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Canít fly beyond 60 days, Jet Airways tells staff

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

Last edited by deepism; Aug 3, 18 at 3:49 am Reason: Direct quote from media reports.
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Old Aug 3, 18, 8:20 am
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Originally Posted by deepism View Post
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
Problem is that the airlines are screwed because there is extremely poor demand in India. With oil prices sky rocketing the airlines still can't raise prices because of competition and limited demand. Expect a lot of cost cutting and potentially one of two airlines going under.
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Old Aug 3, 18, 9:33 am
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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!
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Old Aug 3, 18, 11:22 am
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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).
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Old Aug 3, 18, 1:22 pm
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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..?




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Old Aug 4, 18, 1:42 am
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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.
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Old Aug 5, 18, 7:20 am
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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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Old Aug 5, 18, 1:33 pm
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Originally Posted by LH757 View Post

...

Apparently they have to return many aircrafts back to lessors due to unpaid debts.

...
I do not believe this is true. Can you provide more information please?
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Old Aug 20, 18, 4:25 am
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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.
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Old Aug 21, 18, 8:33 am
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Originally Posted by JamesKidd View Post
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.
flew 9w from bom-del & then del-ams last night....no signs on board that anything is wrong....
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Old Aug 21, 18, 8:52 am
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This is pretty disturbing.. https://thewire.in/business/governme...oning-of-funds
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Old Aug 21, 18, 2:46 pm
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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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Old Aug 27, 18, 12:28 pm
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Originally Posted by LH757 View Post
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!
I heard EY themselves haven't been doing well. What happened to their plans of joining Star Alliance?
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
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Old Aug 28, 18, 1:16 am
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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....
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Old Sep 26, 18, 7:29 am
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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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