Jet Airways struggling debt Help from Mukesh Ambani and Ratan Tata
Jet Airways Chief Naresh Goyal, who is facing financial crisis, has approached Reliance Industries Chairman Mukesh Ambani to save the airline. People familiar with the matter told that Naresh Goyal also sought help from Tata Group’s Ratan Tata. Naresh Goyal’s stake in Jet Airways is 51 per cent. He wants to sell some part of the company to save it. The company’s financial condition is so bad that it has not been able to give employees salaries on time over the last several months.
According to a mint report, Mukesh Ambani has not responded to Goyal’s request so far. The report also claims that negotiations with several foreign airlines are in progress. Earlier, the news came that Tata Group wanted to buy a stake in Jet Airways, but it did not work. Tata Group is already running Expand Airlines with Air Asia and Singapore Airlines in the country. It has 41% stake in Extra. Extra is a joint venture of Tata and Singapore Airlines. However, the Tata Group spokesman has refused to comment on anything. On this news, Jet Airways spokesman said that according to the company’s policy, we do not comment on speculation.
Jet Airways seeks help from Mukesh Ambani, Ratan Tata
At Jet Airways, Abu Dhabi’s company Etihad Airways has a 24 per cent stake. The company has a dire need of capital to repay its debt and pay salaries to employees. Mukesh Ambani has already helped him by buying a stake in many companies.
Jet Airways, which constantly facing losses, had delayed the outstanding salaries of the pilots, engineers and senior management staff in August. The company had said that the September salary will be delayed. According to the company, the payment of 50 percent of the outstanding salary in the month of August was to be made on September 26 but only half of that amount was able to pay. Meanwhile, Jet Airways has not been able to pay the aircraft laser, which has issued notice to the Airports Authority of India.
Shortly before, Jet Airways had taken 20 employees out of which some senior level executives were also involved. A decade ago, the company showed 1900 employees a way out of the company, but kept them back after growing up. Not only this, Chairman Naresh Goyal had asked the employees to apologize.
Jet Airways’ financial flight of some such deteriorating
Jet Airways reported a loss of about Rs 1,040 crore in January-March (2018) quarter due to falling earnings and expenditure in January-March. In May 2018 JetLite’s subsidiary JetLite’s merger not approved, resulting in worsening the situation. In August, the company struggled with huge cash crunch. Airlines had to cut 25 percent of salary for senior employees. In the first quarter of the current financial year 2018-19, the deficit has increased by more than 30 percent to 1323 crore rupees. The company could give half its salary to the month of August. The Income Tax officials surveyed the company’s Mumbai and Delhi offices for allegations of financial irregularities. Jet Airways, which under heavy debt in September 2018, decided not to give free food to the economy class.