edealinfo
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Re: Jet Airways: reports cash running out

Thu Jan 31, 2019 3:12 am

CaliguyNYC wrote:
edealinfo wrote:
Latest news;
Banks to convert Rs 800 crore and waive Rs 800 to Rs 1000 crore in debt and secure 51 percent of Jet equity. Stage 2 will be a rights issue priced at Ethihad quoted Rs 150 a share. Post rights issue, etihad would hold 40 to 46 percent and Naresh Goyal, the lord almighty, would hold 20 to 22 percent. Looks like the plans will continue to be fine tuned until Feb 21. The government, through its banks, won’t let Jet fall, as I predicted.

https://www.google.com/amp/s/www.dnaind ... 714002/amp


Yup as expected. Now lets see if they actually push Goyal from management. Then perhaps this saga can end. Unfortunately EY plus Goyal will still have control. Funny how that happens.


My hunch is that with 22%, Naresh Goyal (NG) will still tight for awhile, and plot and scheme to "some day" regain control - it is in his blood not to give up on his "baby"/creation. The winds blow constantly in India's highly charged political environment and NG how to play the game, having been at it for over 25 years.
 
edealinfo
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Re: Jet Airways: reports cash running out

Thu Jan 31, 2019 3:13 am

edealinfo wrote:
CaliguyNYC wrote:
edealinfo wrote:
Latest news;
Banks to convert Rs 800 crore and waive Rs 800 to Rs 1000 crore in debt and secure 51 percent of Jet equity. Stage 2 will be a rights issue priced at Ethihad quoted Rs 150 a share. Post rights issue, etihad would hold 40 to 46 percent and Naresh Goyal, the lord almighty, would hold 20 to 22 percent. Looks like the plans will continue to be fine tuned until Feb 21. The government, through its banks, won’t let Jet fall, as I predicted.

https://www.google.com/amp/s/www.dnaind ... 714002/amp


Yup as expected. Now lets see if they actually push Goyal from management. Then perhaps this saga can end. Unfortunately EY plus Goyal will still have control. Funny how that happens.


My hunch is that with 22%, Naresh Goyal (NG) will still tight for awhile, and plot and scheme to "some day" regain control - it is in his blood not to give up on his "baby"/creation. The winds blow constantly in India's highly charged political environment and NG knows how to play the game, having been at it for over 25 years.
 
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Viman
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Re: Jet Airways: reports cash running out

Thu Jan 31, 2019 9:51 am

P1aneMad wrote:
Are the salaries of the Naresh Goyal social media cheerleaders behind too or is it only Jet employees that are getting shafted?


Naresh Goyal's Social media cheerleaders are paid ON TIME. It is laughable to see them trying to spin Naresh Goyal losing control of Jet Airways as some kind of achievement. Giving long term plans that one day Naresh will try to scheme and get back control, they are so desperate that they are not able to even hide their intentions. Do they even know their paymaster's age? Hopefully Eithad will keep clearing these payments, so their allegiance changes from Naresh to Jet Airways.
 
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sq421
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Re: Jet Airways: reports cash running out

Thu Jan 31, 2019 10:57 am

Viman wrote:
The only one harming Jet employees is Naresh Goyal and his minions on social media, they have sheepishly gone underground after the recent spate of cancellations as they don't want to face the wrath of irate customers. If Naresh destroys jet he should branded as wilful defaulter and thrown in Jail.


You think Naresh Goyal has the time like you and me to go through this forum, read what the arm chair critics are saying and grow a conscience?
 
binayak
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Re: Jet Airways: reports cash running out

Thu Jan 31, 2019 11:44 am

sq421 wrote:
You think Naresh Goyal has the time like you and me to go through this forum, read what the arm chair critics are saying and grow a conscience?


Just ignore these lobbyists. You'll find many of them here. Next time you see such an irrational post, don't reply .
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unrave
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Re: Jet Airways: reports cash running out

Thu Jan 31, 2019 1:28 pm

Jet Airways seems to have reinstated three aircraft that were grounded.
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CaliguyNYC
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Re: Jet Airways: reports cash running out

Thu Jan 31, 2019 2:59 pm

unrave wrote:
Jet Airways seems to have reinstated three aircraft that were grounded.


If this is true, amazing. Yesterday the sky was falling, today they are flying. Jeez look at the damage all these "news" reports are doing to Jet.
 
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lightsaber
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Re: Jet Airways: reports cash running out

Thu Jan 31, 2019 2:59 pm

unrave wrote:
Jet Airways seems to have reinstated three aircraft that were grounded.

Which ones? Do they have any reserve aircraft? Engine work can be planned 6 weeks in advance and can be done quickly. There was no real reason 3 aircraft should have been down. Not with today's engine swap procedures.
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avier
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Re: Jet Airways: reports cash running out

Thu Jan 31, 2019 3:19 pm

CaliguyNYC wrote:

If this is true, amazing. Yesterday the sky was falling, today they are flying. Jeez look at the damage all these "news" reports are doing to Jet.


And some a.net users on here using such hoax news to malign the airline even more. All those aircrafts had no common link to GECAS too. And the "lovely" reporting by the Indian press as usual.
 
blrsea
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Re: Jet Airways: reports cash running out

Thu Jan 31, 2019 3:30 pm

Jet CEO writes to employees saying there is a deal on the horizon, though warns it might get worse before it gets better.

'Situation might get tougher before it gets better,' Jet CEO

“Our chairman (Naresh Goyal), the board of directors and your management team are working hard on a balance sheet transaction that will help us eliminate our current challenges. In fact, the airline’s key stakeholders are actively engaged towards finalization of the resolution plan. We are very close, and I ask for your continued patience. Given our ongoing challenges, this is a very tall ask,” Jet’s CEO Vinay Dube said in a mail to employees on Thursday.

“We are working as fast as we can for a successful outcome recognizing the tremendous sacrifices all of you are making. I believe that we will be successful. Our guests are certainly rooting for us - sometimes it feels like the entire country is rooting for us … I believe we will come out of our current set of challenges. It might get tougher before it gets better, and our ascendancy will be gradual, but collectively, with your unstinted support and commitment, we will come out of this a stronger airline. I believe that as I believe in you,” Dube said in the mail.

He complimented the high morale employees are showing in this difficult hour. “I can say with great pride that all of you continue to run a very good airline even under the most adverse of circumstances. Based on OAG, an airline industry leader in data and analytics, Jet Airways ranked number 1 in arrival OTP (on time performance) amongst Indian carriers for both November 2018 and December 2018. OAG also put Jet Airways at the top of the operational reliability table for the month of December 2018 based on the fewest cancellations by any Indian carrier. While flight cancellations, regardless of reasons, have an immense impact on our guests, frontline colleagues as well as our operational and commercial teams across the network, I want to highlight to you that it has been your hard work and dedication that has put us on top of Indian aviation’s reliability chart and despite some of our challenges this week, I’m confident that we will once again be at the top of the class in terms of key operational parameters for the month of January,” it added.
...
 
blrsea
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Re: Jet Airways: reports cash running out

Fri Feb 01, 2019 4:31 am

Business Standard reporting Goyal has accepted most of EY's terms. The article is behind paywall

Debt-laden Jet Airways accepts Etihad bailout plan, may sign MoU soon

Naresh Goyal-controlled Jet Airways has agreed with most of the conditions set by its partner Etihad for offering a lifeline to the debt-laden domestic carrier. According to sources, the airlines are set to sign a memorandum of understanding (MoU) within days. According to the proposed deal, Founder Chairman Goyal will step down from the board of directors and relinquish his decision-making powers.

His stake in the company would come down to around 22 per cent from 51 per cent now. Goyal’s son Nivaan Goyal will get a board seat.
...
 
avier
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Re: Jet Airways: reports cash running out

Fri Feb 01, 2019 4:36 am

According to the proposed deal, Founder Chairman Goyal will step down from the board of directors and relinquish his decision-making powers.

His stake in the company would come down to around 22 per cent from 51 per cent now. Goyal’s son Nivaan Goyal will get a board seat.


So he'll control the airline through his son Nivaan. NG himself remains out which is good.
Last edited by avier on Fri Feb 01, 2019 4:39 am, edited 1 time in total.
 
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unrave
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Re: Jet Airways: reports cash running out

Fri Feb 01, 2019 4:37 am

Well and truly the end of the road for NRI Goyal then.
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JoeCanuck
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Re: Jet Airways: reports cash running out

Fri Feb 01, 2019 5:02 am

That was Etihad's 'take it or leave it' last offer...and the only one Goyal was going to get. It was a smart move to finally recognize he was out of options and take it. He will spin it as a victory but, he has lost effective control of Jet.

Employee morale should instantly improve, but the devil is in the details...and those details should make for interesting reading.

I wonder how soon backpay will get cleared up.
What the...?
 
9w748capt
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Re: Jet Airways: reports cash running out

Fri Feb 01, 2019 5:27 am

Fascinating thread - especially the last few pages. What a fall for 9W - I remember flying through BRU on one of my India trips and being wowed by how good they were even in steerage.

Given EY's own difficulties I'm really surprised they're stepping up with the cash. Do they really think 9W can return to profitability or is it just a backhanded way to maintain access to India?
 
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unrave
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Re: Jet Airways: reports cash running out

Fri Feb 01, 2019 5:29 am

The 500 crore emergency funding is chickenfeed. The significant numbers to note are how much of the debt is converted to equity and at what rate and how much of actual cash that is brought in by Etihad
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binayak
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Re: Jet Airways: reports cash running out

Fri Feb 01, 2019 8:13 am

unrave wrote:
Well and truly the end of the road for NRI Goyal then.


Hardly matters as the brand "jet airways " will continue to thrive and prosper.
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unrave
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Re: Jet Airways: reports cash running out

Fri Feb 01, 2019 8:38 am

I am not yet sure about Jet thriving and prospering, but it will survive for now and that's a great development, under the circumstances.
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dtw2hyd
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Re: Jet Airways: reports cash running out

Fri Feb 01, 2019 11:01 am

This is not the first time Indian media reported an "imminent" deal. There were several in the past five months. I believe when I see one.

I sincerely think an a.net doomsday clock would help this thread a great deal. Where are we now? 3 minutes to midnight.
 
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lightsaber
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Re: Jet Airways: reports cash running out

Fri Feb 01, 2019 12:14 pm

dtw2hyd wrote:
This is not the first time Indian media reported an "imminent" deal. There were several in the past five months. I believe when I see one.

I sincerely think an a.net doomsday clock would help this thread a great deal. Where are we now? 3 minutes to midnight.

Doomsday clock? LoL

They accept most of the terms... Did Etihad agree?
https://mobile.reuters.com/article/amp/idUSKCN1PQ3JM

The deal isn't signed. That means Etihad might not be offered a term they consider crucial. If they do not see a return on investment for the new funds, they might not invest. In a contract, details are crucial.

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CaliguyNYC
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Re: Jet Airways: reports cash running out

Fri Feb 01, 2019 2:26 pm

dtw2hyd wrote:
This is not the first time Indian media reported an "imminent" deal. There were several in the past five months. I believe when I see one.

I sincerely think an a.net doomsday clock would help this thread a great deal. Where are we now? 3 minutes to midnight.


Agreed. But I think what some people keep forgetting is that Etihad probably doesn't want a "no deal" scenario either because the lenders would take over. Debt would trump equity. What I feel is going on is that Goyal has that card to play plus Etihad cannot "control" Jet per investment rules (and bilaterals). So there is a game of chicken both Goyal and Etihad are playing.

As expected the Goyal family retains one board seat (the likelihood of controlling 20% and not have a board seat is low). Getting the father out is just window dressing. My fear is that Etihad starts to exert more control of Jet and that control is irrational. I think part of the fall of Jet was EY's ill conceived notion of forcing almost all west bound traffic through AUH. The best thing Jet every did was their DL/AF/KL/VS partnership. I hope EY allows this to grow. That said, I still think EY's investment in Jet is very valuable. Jet and EY should be totally coordinated so that an India based flyer gets more options. Say a nonstop BOM-NBO on Jet and another timing via EY (so you mix and match based on your flight time needs but have NONSTOP options to major destinations). Maybe even a metal neutral JV. Even at JFK, EY dropped their 2:30pm JFK-AUH flight. Would love to see Jet start JFK-BOM with an afternoon departure to allow connections in India (in partnership with DL) and then also offer the 10pm JFK-AUH-India option through EY. That would be a perfect partnership IMHO. I think EY's old strategy is even more useless given Indigo and Spice (hell even AI) will just fill in the holes if Jet doesn't start key nonstop routes.
 
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Re: Jet Airways: reports cash running out

Fri Feb 01, 2019 3:06 pm

CaliguyNYC wrote:
My fear is that Etihad starts to exert more control of Jet and that control is irrational. I think part of the fall of Jet was EY's ill conceived notion of forcing almost all west bound traffic through AUH.


The thing about EY is : they aren't themselves run as a lean & efficient airline, which is evident in their current mess they are in. They have no focus on profitability (atleast till now or recently). So one wonders what groundbreaking strategies are they going to instill into 9W to truly turnaround the airline to make it profitable and competitive in the Indian market.
 
avier
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Re: Jet Airways: reports cash running out

Fri Feb 01, 2019 3:14 pm

^ Also since EY stated that they'd like to hire a CEO of their choice as per the terms of rescue, they'd better think of hiring some ULCC airline's executive(s), as that's what they need to turn 9W mostly in to (that's a LCC type carrier) for it's sustainability in the aggressive Indian aviation scene.
 
dtw2hyd
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Re: Jet Airways: reports cash running out

Fri Feb 01, 2019 3:27 pm

CaliguyNYC wrote:
I think part of the fall of Jet was EY's ill conceived notion of forcing almost all west bound traffic through AUH. The best thing Jet every did was their DL/AF/KL/VS partnership. I hope EY allows this to grow. That said, I still think EY's investment in Jet is very valuable. Jet and EY should be totally coordinated so that an India based flyer gets more options.


EY will foster the 9W-SkyTeam+ relationship going forward. There shouldn't doubt. 9W's financials and AMS slots are the issues.

avier wrote:
Also since EY stated that they'd like to hire a CEO of their choice.


That would be a really dumb move. Keep in mind AI is ready to connect MAA/HYD to LHR. If 9W doesn't have a SkyTeam trusted CEO, DL/VS might as well partner with AI at LHR.
Last edited by dtw2hyd on Fri Feb 01, 2019 3:33 pm, edited 1 time in total.
 
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unrave
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Re: Jet Airways: reports cash running out

Fri Feb 01, 2019 3:33 pm

Cheerleaders of Jet were claiming the airline was in the pink of health until very recently.
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binayak
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Re: Jet Airways: reports cash running out

Fri Feb 01, 2019 3:33 pm

avier wrote:
^ Also since EY stated that they'd like to hire a CEO of their choice as per the terms of rescue, .


Sorry for my ignorance but I couldn't find any article stating that. Do they want Vinay Dube out of 9W too?
I'd just heard they'll like to have the board members of their choice.
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vadodara
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Re: Jet Airways: reports cash running out

Fri Feb 01, 2019 3:36 pm

9w748capt wrote:
Fascinating thread - especially the last few pages. What a fall for 9W - I remember flying through BRU on one of my India trips and being wowed by how good they were even in steerage.

Given EY's own difficulties I'm really surprised they're stepping up with the cash. Do they really think 9W can return to profitability or is it just a backhanded way to maintain access to India?


Not that EY has done anything to talk home about.

However considering the rulers think bringing in people to Abu Dhabi is a good thing and are willing to throw money, 9W is a great deal.

It will allow them to funnel pax from tier 2 and 3 Indian cities. EY is down to 3-4 US cities right now. For them to be meaningful they need to go up to 10 or so. 9W will be their ticket to that route.
 
Exeiowa
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Re: Jet Airways: reports cash running out

Fri Feb 01, 2019 3:44 pm

This seems to be the breathing room they need, Etihads track record isnt exactly great, nut we will see what happens. A country the size of India needs a credible full service airline. Hopefully for the staff under the restrictive work practices get made whole as part of this.
 
VTORD
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Re: Jet Airways: reports cash running out

Fri Feb 01, 2019 5:34 pm

vadodara wrote:
It will allow them to funnel pax from tier 2 and 3 Indian cities. EY is down to 3-4 US cities right now. For them to be meaningful they need to go up to 10 or so. 9W will be their ticket to that route.

This is the key. 2 out of the 4 stations they still serve in the US are non-DL hubs. They could be a valuable buttress against Star Alliance. If they see themselves providing XXX-AUH-YYY India 1-stop and bringing back those stations via 9W, why not? And leave LAX, JFK to DL/AF-KL/9W via BOM. It is mind blowing how the value of a 1-stop connection to secondary Indian cities is overlooked over the fascination of seeing DL fly non-stop to India!

Also I was under the impression (discussed here quite a few post above) that 9W's 77Ws are not capable of flying non-stop to the US....
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vadodara
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Re: Jet Airways: reports cash running out

Sat Feb 02, 2019 6:02 am

VTORD wrote:
If they see themselves providing XXX-AUH-YYY India 1-stop and bringing back those stations via 9W, why not? And leave LAX, JFK to DL/AF-KL/9W via BOM. It is mind blowing how the value of a 1-stop connection to secondary Indian cities is overlooked over the fascination of seeing DL fly non-stop to India!

Also I was under the impression (discussed here quite a few post above) that 9W's 77Ws are not capable of flying non-stop to the US....


Yes, on both sides of the Atlantic. The DL non-stop bandwagon as well as the BOM hub crowd.

9W got away with this with pliant banks. Once the banks were ‘allowed’ to view the deal in commercial sense, Goya had no recourse.

Much has been said about growth of Indian aviation by LCC. For international service, India is grossly underserved. Hopefully this creates another viable opt for the harried Indian travelled.
 
binayak
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Re: Jet Airways: reports cash running out

Sat Feb 02, 2019 6:59 am

VTORD wrote:

Also I was under the impression (discussed here quite a few post above) that 9W's 77Ws are not capable of flying non-stop to the US....


9W's 77Ws can do BOM JFK easily in their current configuration . They've done AUH SFO non stop for quite some time and that's longer than JFK BOM.
http://www.gcmap.com/mapui?P=BOM-JFK+,+AUH-SFO

avier wrote:
CaliguyNYC wrote:
My fear is that Etihad starts to exert more control of Jet and that control is irrational. I think part of the fall of Jet was EY's ill conceived notion of forcing almost all west bound traffic through AUH.


The thing about EY is : they aren't themselves run as a lean & efficient airline, which is evident in their current mess they are in. They have no focus on profitability (atleast till now or recently). So one wonders what groundbreaking strategies are they going to instill into 9W to truly turnaround the airline to make it profitable and competitive in the Indian market.


I'm sure EY have learned lessons from last time. Now if they want more flights to AUH, they can do the same themselves instead of making 9W do because they have the rights for almost any Indian city to AUH now. They can lease a few MAX from jet for the same. Tier 2/3- AUH hasn't worked for 9W ever.

EY can help 9W through their own strengths. I mean they can help 9W refurbish WB interiors . Rest I'm sure Vinay Dube and his team is competent enough to turn around the airline. Cash was their problem till now but that's being solved temporarily.
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avier
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Re: Jet Airways: reports cash running out

Sat Feb 02, 2019 7:17 am

binayak wrote:
avier wrote:
^ Also since EY stated that they'd like to hire a CEO of their choice as per the terms of rescue, .


Sorry for my ignorance but I couldn't find any article stating that. Do they want Vinay Dube out of 9W too?
I'd just heard they'll like to have the board members of their choice.


It hasn't been stated explicitly that they want Dube out. But after they have a reconstituted board, the new board will decide on the CEO & CFO. Which means a chance Dube might or might not stay, as to what they come to decide upon.
 
vadodara
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Re: Jet Airways: reports cash running out

Sat Feb 02, 2019 2:27 pm

binayak wrote:

I'm sure EY have learned lessons from last time. Now if they want more flights to AUH, they can do the same themselves instead of making 9W do because they have the rights for almost any Indian city to AUH now. They can lease a few MAX from jet for the same. Tier 2/3- AUH hasn't worked for 9W ever.

EY can help 9W through their own strengths. I mean they can help 9W refurbish WB interiors . Rest I'm sure Vinay Dube and his team is competent enough to turn around the airline. Cash was their problem till now but that's being solved temporarily.


Seems like even less of a reason for 9W to exist as an independent airline. Running out of places to fly.
 
binayak
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Re: Jet Airways: reports cash running out

Sat Feb 02, 2019 2:52 pm

There are better routes 9W can try than tier 2/3 -- AUH .

For EY to operate AUH -- Tier 2/3 city
Just another short haul route out of Abu Dhabi . Not much of an increase in costs so no need to care much about the yields . It will serve as an important feeder for long haul ops.

For 9W to operate AUH -- Tier 2/3 city
Maintain a separate set of staff ( at least cabin , cockpit crew , ground service , offices at those cities ) just for those routes which will affect costs to a good extent but the yields won't compensate for the same . So no need to operate those routes . They can try out more frequencies in DEL/BOM/BLR AUH instead and lease some of their MAXes to EY to operate tier 2/3 -- AUH .

EY can easily take advantage of 9W's presence and corporate contracts at BOM / DEL and allow them to have more non stops to key destinations .
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SQ789
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Re: Jet Airways: reports cash running out

Sat Feb 02, 2019 2:54 pm

I heard 9W has grounded some plane's and reduce some routes. One of the aircraft is VT-JXC a 737 MAX. Any others fleet that is also grounded?
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avier
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Re: Jet Airways: reports cash running out

Sat Feb 02, 2019 3:01 pm

SQ789 wrote:
I heard 9W has grounded some plane's and reduce some routes. One of the aircraft is VT-JXC a 737 MAX. Any others fleet that is also grounded?


Of the 5 that we're reported grounded, three are back in flying, and the rest JXC JFL remain grounded. As per airline one is grounded for engine normalization and another's engine lease has expired.
 
VTORD
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Re: Jet Airways: reports cash running out

Sat Feb 02, 2019 3:35 pm

binayak wrote:
I mean they can help 9W refurbish WB interiors .

Whatever happened to the 9W plan for removing F?

binayak wrote:

For EY to operate AUH -- Tier 2/3 city
Just another short haul route out of Abu Dhabi . Not much of an increase in costs so no need to care much about the yields . It will serve as an important feeder for long haul ops.

For 9W to operate AUH -- Tier 2/3 city
Maintain a separate set of staff ( at least cabin , cockpit crew , ground service , offices at those cities ) just for those routes which will affect costs to a good extent but the yields won't compensate for the same . So no need to operate those routes . They can try out more frequencies in DEL/BOM/BLR AUH instead and lease some of their MAXes to EY to operate tier 2/3 -- AUH .

EY can easily take advantage of 9W's presence and corporate contracts at BOM / DEL and allow them to have more non stops to key destinations .

Fair point. I see currently on EY's website AUH-BOM shows up as 1x320 + 1x77W + 2x73H (9W). Perhaps using 9W metal on the NB rotation could free up an asset to deploy to another Indian city for EY. How much room does the bilateral have?
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dtw2hyd
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Re: Jet Airways: reports cash running out

Sat Feb 02, 2019 3:51 pm

EY is both station and frequency restricted in India. It is easy for 9W to operate from a Tier 2/3 Indian city to AUH. If I recall EY is allowed only at 9 or total 23 points in India. 9W is very important to EY if it wants to keep access to all 90,000/week seats.
 
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unrave
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Re: Jet Airways: reports cash running out

Sat Feb 02, 2019 4:09 pm

EY is not restricted by frequency
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binayak
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Re: Jet Airways: reports cash running out

Sat Feb 02, 2019 4:23 pm

VTORD wrote:
binayak wrote:
I mean they can help 9W refurbish WB interiors .

Whatever happened to the 9W plan for removing F?


They need cash for refurbishment . F will be removed for sure . However just removing F and not touching the other cabins makes them lose a chance to upgrade their product . So they'll have a complete new WB product ( and it's required given how rapidly worldwide airlines are upgrading hard products) once they have the cash on hand . The CEO had mentioned this during their 25th anniversary .

dtw2hyd wrote:
It is easy for 9W to operate from a Tier 2/3 Indian city to AUH.


I'd like to disagree there . I've explained the reason in a post recently .
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avier
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Re: Jet Airways: reports cash running out

Sat Feb 02, 2019 4:42 pm

binayak wrote:

dtw2hyd wrote:
It is easy for 9W to operate from a Tier 2/3 Indian city to AUH.


I'd like to disagree there . I've explained the reason in a post recently .


EY can incentivise 9W and share the costs of operating from such cities to make the ops more viable, after all that's where 9W serves EY's purpose of flying to places it cannot itself. Or they'll miss out on places like Mangalore, Kannur, Lucknow, etc.
 
binayak
Posts: 787
Joined: Sat Nov 25, 2017 2:00 pm

Re: Jet Airways: reports cash running out

Sat Feb 02, 2019 5:02 pm

avier wrote:

EY can incentivise 9W and share the costs of operating from such cities to make the ops more viable, after all that's where 9W serves EY's purpose of flying to places it cannot itself. Or they'll miss out on places like Mangalore, Kannur, Lucknow, etc.


I thought EY leasing some MAX from 9W will be better than them incentivising 9W to start those routes . EY can use 9W's rights here and can fly to those mentioned places and many more
The best preparation for tomorrow is doing your best today
 
dtw2hyd
Posts: 6569
Joined: Wed Jan 09, 2013 12:11 pm

Re: Jet Airways: reports cash running out

Sat Feb 02, 2019 5:04 pm

binayak wrote:
dtw2hyd wrote:
It is easy for 9W to operate from a Tier 2/3 Indian city to AUH.


I'd like to disagree there . I've explained the reason in a post recently .


I understand the operational constraints in the current financial situation. But 9W has to develop NB T2/3-International capability. You never know when NBs will start connecting Europe.

Not related to AUH, right now there is an RFP for VGA-DXB-VGA, state government underwrites 50% capacity with 3 Crores/month VGF. A safe bet for 9W if it wins. Most likely 6E will snatch this route as well.
 
edealinfo
Posts: 174
Joined: Mon Jan 21, 2019 7:11 pm

Re: Jet Airways: reports cash running out

Sat Feb 02, 2019 5:20 pm

9w748capt wrote:
Fascinating thread - especially the last few pages.


Someday, Naresh Goyal will sell the movie rights to his story, titled "Internal and External Machinations"
 
avier
Posts: 430
Joined: Tue Aug 07, 2018 12:38 pm

Re: Jet Airways: reports cash running out

Sat Feb 02, 2019 5:23 pm

binayak wrote:

I thought EY leasing some MAX from 9W will be better than them incentivising 9W to start those routes . EY can use 9W's rights here and can fly to those mentioned places and many more


EY taking on lease 9W MAX's still doesn't permit them to fly to those points as those "rights" are not transferable and since they will also operate those flights under their own EY AOP, which bilaterally still restricts them. Only flights operated under 9W AOP can fly those places.
 
edealinfo
Posts: 174
Joined: Mon Jan 21, 2019 7:11 pm

Re: Jet Airways: reports cash running out

Sat Feb 02, 2019 5:28 pm

dtw2hyd wrote:
Not related to AUH, right now there is an RFP for VGA-DXB-VGA, state government underwrites 50% capacity with 3 Crores/month VGF. A safe bet for 9W if it wins. Most likely 6E will snatch this route as well.


Another stupid policy from bureaucrats simply because all bilateral rights from India to DXB (by Indian carriers) are already exhausted!!!
 
edealinfo
Posts: 174
Joined: Mon Jan 21, 2019 7:11 pm

Re: Jet Airways: reports cash running out

Sat Feb 02, 2019 5:33 pm

binayak wrote:
EY can incentivise 9W and share the costs of operating from such cities to make the ops more viable, after all that's where 9W serves EY's purpose of flying to places it cannot itself. Or they'll miss out on places like Mangalore, Kannur, Lucknow, etc.


[/quote]

Binayak,
I believe the rights for flying India to AUH (on Indian carriers) are almost exhausted as is the case with DXB.

On the brighter side for Jet, the restricted capacity between India and the UAE (which the Indian government is unlikely to increase, and hasn't done so for a long time), protects the turn of existing carriers like Jet that already have taken much of this capacity.
 
edealinfo
Posts: 174
Joined: Mon Jan 21, 2019 7:11 pm

Re: Jet Airways: reports cash running out

Sat Feb 02, 2019 5:37 pm

binayak wrote:
avier wrote:
^ Also since EY stated that they'd like to hire a CEO of their choice as per the terms of rescue, .


Sorry for my ignorance but I couldn't find any article stating that. Do they want Vinay Dube out of 9W too?
I'd just heard they'll like to have the board members of their choice.


Vinay Dube is a professional and has been critical in the Delta/VS/KLM/Air France and Jet relationship. But Etihad may still want him out if they think he is "Goyal's" proxy. On the other hand, retaining Dube may be useful in portraying that Etihad isn't in "effective control" (per Indian law) even though the whole world would actually know that Etihad
would be in control.
 
edealinfo
Posts: 174
Joined: Mon Jan 21, 2019 7:11 pm

Re: Jet Airways: reports cash running out

Sat Feb 02, 2019 5:39 pm

avier wrote:
So he'll control the airline through his son Nivaan. NG himself remains out which is good.


Unlike in Western cultures, it is highly important to the Indian psyche to pass on the torch to the offspring
 
CaliguyNYC
Posts: 565
Joined: Tue Sep 27, 2016 7:27 pm

Re: Jet Airways: reports cash running out

Sat Feb 02, 2019 7:11 pm

VTORD wrote:
vadodara wrote:
It will allow them to funnel pax from tier 2 and 3 Indian cities. EY is down to 3-4 US cities right now. For them to be meaningful they need to go up to 10 or so. 9W will be their ticket to that route.

This is the key. 2 out of the 4 stations they still serve in the US are non-DL hubs. They could be a valuable buttress against Star Alliance. If they see themselves providing XXX-AUH-YYY India 1-stop and bringing back those stations via 9W, why not? And leave LAX, JFK to DL/AF-KL/9W via BOM. It is mind blowing how the value of a 1-stop connection to secondary Indian cities is overlooked over the fascination of seeing DL fly non-stop to India!

Also I was under the impression (discussed here quite a few post above) that 9W's 77Ws are not capable of flying non-stop to the US....


Seriously Jet/EY already went down the path of connecting many points in India to AUH to then send them on to the world. It FAILED. Btw what about the routing JFK-BOM-India is not a one stop connection for tier 2/3 cities? EY screwed up big time with Jet. They should have financed Jet to further grow their BOM hub when slots were available. Instead the brilliant strategy was to have EY fly BOM-AUH at 4am and Jet fly BOM-AUH at 4:15am. Great for consumers right? Look at DL and AF/KL. DL doesn’t miss the chance to start a viable US-EU route. It then pushes traffic through CDG/AMS for cities it can’t connect nonstop. Finally, India needs a strong hub. This would bring economic growth and jobs to India. When you say “fascination” of the nonstop, I say what is the fascination of being connected to AUH of DXB or KWI etc? Plus India is already super well connected to the ME. It is pretty clear to me that pax flying to/from India are also looking for other options. Yes some people like flying the ME3 but there is a huge crowd who likes flight times, pax service, etc tailored for India. Hence why AI does well with heir DEL hub (and that is AI for god sake).

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