Jet Airways in complete losses could not pay employee salaries

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What’s going on with Jet Airways

Jet Airways is one of the oldest Airline services with large market capitalization. The position of Jet Airways has changed drastically and now it’s in deep losses and could not pay the proper salaries for their employees.

 

How much loss does Jet Airways be experiencing?

Back in January, the total feet of flights of Jet Airways were Jet Airways Loss4 and at present, they were only 20 which is a sharp decline. Though share price isn’t affected much it just got dropped 2%. This means still many investors are hoping for the recovery.

If we just calculate the percentage of the downfall of Jet Airways it would be around 90% which means there’s nothing more left with Jet Airways.

The airline is struggling to operate and almost 110 flights are grounded as they could not pay the leases for the Aircrafts.

Moreover, the total debt of the company is nearly $1 bn and failed to pay the interest to bank, salaries and lease payment to the companies.

If there were no debts it would be a different situation and it will be possible to recover the declining company. The main problem is there is no cash flow within the company. By this, the company could not spend to recover the financial crisis.

Do Jet Airways stopped the operation of Internation and domestic flights

Obviously, they have reduced their fleet number to 20 from 124. So they have stopped many domestic and international destinations. At present Jet, Airways need a potential buyer to hold on to run the operation and look over the company.

But unfortunately, no one is ready to take over the Jet Airways company. Moreover, Jet Airways requested Etihad to take over the company but Etihad ignored to take over Jet Airways.

The Union Minister also asked the top members to look into the issue and find a perfect solution for this.

What about the employees of Jet Airways?

The main aspect of the story is that the Govt of India is making a lot of efforts to save Jet Airways. Moreover, Govnt doesn’t want Jet Airways to get closed down.

Is there any intention behind it, may be due to the elections coming ahead.

Moreover, some of the steps are taken by the Government to save Jet Airways with the scheme of the National Investment and Infrastructure Fund (NIIF).

Govt has a 49% stake and this fund could save Jet Airways from closing its company.

If the company collapses, more than 20K jobs will be lost and the aviation industry in India will get disturbed.

So Govt needs to take appropriate action to save Jet Airways and the most important the Jobs of people in Jet Industry.

This could show a big impact on the 2019 elections as well, because the Govt has taken the initiative to save Jet Airways and if it fails to do it.

It would be a major drawback to the government. On the other hand, the employment issues are on the track and this issue creates another headache to the Govnt.

Until completion of the election, some action needs to be taken to save the company.

Also Read: Azim Premji Donated around Rs.50,000 Crore for Education.