Jet Airways confident in prospects despite reports cash running out

NEW DELHI

Aug 5, 2018-

India’s biggest full-service airline Jet Airways Ltd said on Friday it was confident that it would be able to cut costs and keep flying, despite reports that it had warned staff it was running out of cash. Reuters and several local newspapers reported earlier on Friday that Jet Airways had told pilots it had enough cash left to keep operating for just 60 days and would need to put in place cost-cutting measures including pay cuts. The airline has asked pilots to take a 15 percent pay cut for two years, a proposal they have refused, a senior company executive told Reuters.

Jet Airways CEO Vinay Dube called the reports “factually incorrect” and “malicious”, although the company did not specify precisely what aspects of the reports it disputes. Dube confirmed that the company was in talks with employees and suppliers to cut costs. It was looking at sales and distribution, payroll, maintenance and fleet simplification for savings to create “a healthier and more resilient business”. In a separate emailed statement the airline said it was “confident about its operations” continuing beyond 60 days. India is the world’s fastest-growing aviation market but surging fuel prices, a weaker rupee and airfare wars are hurting airlines, with the country’s leading carrier IndiGo reporting a 97 percent plunge in profit on Monday. Jet Airways agreed last month to purchase 75 Boeing 737 MAX aircraft to meet domestic passenger demand, taking its total order for the planes to 225. The airline has said the planes would enhance efficiency and lower costs. (REUTERS)

Published: 05-08-2018 08:46

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