Attempting to write an article about JetAirways over the past
few weeks year has been a moving target. Every day, something new had taken place. However, this morning represents a new low. JetAirways cancelled ALL international flights and their domestic flights are chaotic…at best.
It seems many carriers are teetering on the edge these days. Less than two weeks ago, low-cost carrier WOW Air, seemingly, closed operations overnight and left more than 4000 passengers stranded. There are many theories about what happened with WOW but this is a different story. JetAirways is NOT a low-cost carrier. In fact, the India-based JetAirways, has long been considered the longhaul airline of choice (over Air India).
JetAirways is the largest international airline in the country but with international flights cancelled and a current debt of nearly Rs 8000 crore ($1.1 billion USD), this appears to be a bad situation.
IT JUST GOT WORSE…
JetAirways has been unsuccessful in securing investors, and missed payments for fuel, employees and leased aircrafts. Unsurprisingly, when you miss payments, it doesn’t take long before the banks begin looking for their property and it is being reported that a JetAirways 777-300ER was seized yesterday for non payment of services at the Amsterdam (AMS) airport.
Today, was the dealine for initial bids for investing in the airline and it appears that financial infusion for the cash-strapped airline was minimal.
Nearly 80% of JetAirways’ fleet it grounded, planes are being seized, and pressure is mounting under a massive amount of debt. It’s difficult to see a way out for JetAirways considering even a buyout takes weeks to close.
The options are endless. We could have another airline that gets a government bailout, a private investor comes to the rescue, or an airline that goes completely out of business.
It will be interesting to see how this plays out over the next few days.
Personally, I was planning a trip to India on JetAirways so this will definitely give pause to my plans.
Have you ever flown JetAirways? What was your experience? Why do you think airlines are having trouble remaining profitable?