INSUBCONTINENT EXCLUSIVE:
Jet Airways needs to repay about Rs 3,000 crore of loans and bonds over the next three years.New Delhi/Bengaluru: Jet Airways shares hit a
three-year low on Friday after it deferred its earnings, prompting analysts to say it urgently needed to recapitalise and restructure
The airline was due to report quarterly earnings on Thursday but instead told the stock exchange that its audit committee had not signed off
on them "pending closure of certain matters"
Jet Airways told staff earlier this month it was running out of money, a source had told Reuters, but it has denied this and said it is
confident of cutting costs and keeping its planes flying.India is the world's fastest-growing aviation market, but surging fuel prices, a
weaker local currency and increasingly competitive air fares are hurting airlines."Recapitalisation is critical and long overdue," Kapil
Kaul, CEO and director for South Asia at consultancy CAPA, said."This coupled with a very effective restructuring which reorganises the
business especially the domestic business is central to stability and viability," Kaul said.India is one of the cheapest domestic airline
markets in the world and carriers have struggled to stay profitable despite filling nearly 90 per cent of seats and seeing a more-than
doubling of domestic passenger numbers over the last four years.Jet Airways needs to repay about Rs 3,000 crore ($436 million) of loans and
bonds over the next three years with a third of it due by the end of next year, Reuters data shows.One of the airline's lenders is State
Bank of India, the chairman of the nation's top bank Rajnish Kumar said on Friday
The loan features on the bank's watch list and special mention accounts, Kumar said, without giving details.While banks keep a close eye
on watch list loans for potential trouble, special mention accounts include borrowers whose loan servicing has been delayed."Jet Airways has
a very good brand with a successful track of delivery to staff, customers and lenders - though the current situation is more challenging and
complex," CAPA's Kaul said.SHARES SINK FURTHERJet Airways is the worst-performing airline stock globally, down 64 per cent so far this
year compared with a 14 per cent fall on average
Its shares closed 8.5 per cent lower.The airline, 24 per cent owned by Etihad Airways and valued at about $500 million, earlier this month
asked pilots to take a 15 per cent pay cut for two years, a proposal they refused, a senior company executive previously told Reuters.Chief
Executive Vinay Dube said at the time the airline was in talks with employees and suppliers, and was reviewing sales and distribution,
