INSUBCONTINENT EXCLUSIVE:
Jet Airways stock has tumbled 66 percent this year.Jet Airways India Ltd
backing the airline into a corner.Shares of the carrier, part-owned by Etihad Airways PJSC, plunged as much as 15 percent Friday in Mumbai
after the company postponed announcing its first-quarter earnings, less than a week after denying a report that it needs drastic measures to
cut costs and bolster its finances
increased.Budget airlines such as IndiGo, GoAir and SpiceJet expanded exponentially in the past decade, giving first-time flyers a new
opportunity and middle-class families an alternative to full-service carriers that offered lounges and free meals on board
forced to sell tickets at base prices of as low as 1 rupee (2 cents) to attract the fastest growing middle class in the world
Indian airlines are among the biggest customers for the single-aisle planes made by Airbus SE and Boeing Co.Mumbai-based Jet Airways had
total debt of 94.3 billion rupees ($1.4 billion), and cash and equivalents of 3.2 billion rupees for the year ended March 31, 2018,
according to Bloomberg-compiled data
March following two years of profit.The probability of the airline failing to repay its obligations in the next 12 months is near the
highest since October 2015, according to a Bloomberg Default Risk model, which tracks metrics including share price, debt and cash flow
Chief Executive Officer Amit Agarwal said Jet Airways has regularly met its commitments on loans and is constantly evaluating opportunities
to refinance or increase the tenure.The carrier needs as much as $500 million in cash immediately and must refinance $400 million of debt,
It has also placed an order for 10 Dreamliner 787, but it may not take them as it reviews its network
It has 121 planes in its fleet, according to its website.Worst PerformerJet Airways stock has tumbled 66 percent this year, making it the
worst performing airline stock in Asia Pacific amid investor concerns over its outlook
rivals are faring no better either
The entire sector has been hit by rising fuel prices, depreciation of the rupee and debt to fund aircraft purchases and rapid growth
IndiGo, operated by InterGlobe Aviation Ltd., posted a 97 percent drop in net profit, its worst-ever quarterly performance
increase revenue, in areas including sales and distribution, payroll and maintenance
The company at the time denied an Economic Times report it had already started firing people and had told some workers to take as much as a
