Sooner787
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 2:32 pm

How is 9W even able to buy fuel for their jets at staitions outside India right now?

I have visions of the Captain having to use his credit card LOL
 
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lightsaber
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 3:06 pm

sibibom wrote:
₹10k crs for an airline with 40 odd planes with 60% on lease and employees jumping ship.....one has to be a fool to buy into Jet at this point.

There is no business case at this point
Overstaffed
Highly paid staff
Most valuable employees (pilots) fleeing.

This is why the SBI is being told to divert $1.5 billion from profitable, job creating lending to Jet. Rule of thumb is every $50,000 USD of investment should create a job in India. So that is 30,000 jobs that won't happen to save maybe 5,000. Stupid. I feel for the Indian taxpayers.

There is no way the SBI can reorganize Jet to compete. Look at how much money AI needs. If Jet is being saved, zero out the private investors and merge with AI and then sell AI.

Make no mistake, this is $1.0+ billion USD, not rupees needed (ok, much might be euros). Expect the rupee to weaken because of this. The company should be allowed to fail.

Actually, EY"s original terms in October should have been accepted. In no way does investing $345 million USD obligate a minority shareholder prohibited from control from owing $1.5 billion. Now Goyal on the other hand...

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edealinfo
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 3:08 pm

avier wrote:
Lenders will meet today to decide on alternatives for Naresh Goyal.
Will also begin hunting for new management for 9W-
Ex- AI CMD's, Ministry Officials, Former CEO's of private airlines in the fray -per reports.

So, despite a 1 in a million shot that Jet will ever turn profitable, the lenders continue to pursue their revival attempt by trying to find some sucker to be the front face to run the airline for which the banks intend to take equity and then fund it with additional loans. only in India!
 
vadodara
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 3:11 pm

Swiss Air is precisely the story here. At least in case of Zurich, there was a certain amount of captive market to run point to point services profitably.

Swiss got into trouble trying to grow ZRH into a hub with wide bodies.

Precisely the path Jet took albeit with poor infrastructure and possibly a smaller amount of premium traffic.
 
blrsea
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 4:05 pm

More cancellations, not sure if they are same ones mentioned here on thread or any new ones

With just of operational fleet, Jet suspends services to 13 international routes till end-April

MUMBAI: Jet AirwaysNSE 3.43 %, on the verge of going belly-up, has suspended operations on as many as 13 more international routes till end-April, besides scaling down frequencies on seven other overseas routes, mostly from Delhi and Mumbai, according to airline sources.

The routes where servicesNSE -0.81 % have been temporarily withdrawn include Pune-Singapore (seven a week), which was launched with much fanfare late last December, and Pune-Abu Dhabi (seven flights a week).

...
The airline has discontinued services from Delhi to Abu Dhabi (nine a week), Dammam (14 weekly), Dhaka (11), Hong Kong and Riyadh (seven each a week) up to April 30, said the airline source.

Besides, the airline has also suspended services on the Bangalore-Singapore route, where it flies twice daily, till April 30.

The flights which have been suspended from Mumbai for this period include services to Abu Dhabi (12 weekly), Bahrain (4-7 weekly), and Dammam (14 weekly). These services will remain suspended till April 30, as per the source.

Similarly, flights on the Mumbai-Hong Kong (7 weekly) route will also not be operated between March 23 and April 30, while the Kolkata-Dhaka services have also been suspended till April 30.

In addition to this, services from Delhi and Mumbai to Kathmandu, Bangkok, Doha, Kuwait and Singapore have been also reduced significantly.

However, the airline has not yet informed the exchanges about these reduction and suspension of services.
 
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unrave
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 4:10 pm

Things are unravelling so fast that it has become impossible to be updated on cancellations and groundings.
Denial of racism is as egregious as racism itself
 
sibibom
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 4:18 pm

Just noticing Jet is down just Mumbai from Delhi! All other destinations have been suspended....
 
edealinfo
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 4:23 pm

sibibom wrote:
Just noticing Jet is down just Mumbai from Delhi! All other destinations have been suspended....

Wow, that is indeed a low point. Can you confirm that they have suspended MAA/BLR to CDG/AMS? If so, then KLM/Air France/Delta would be pissed.
 
anshabhi
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 4:29 pm

sibibom wrote:
Just noticing Jet is down just Mumbai from Delhi! All other destinations have been suspended....


I will miss Jet for the days when no other good airline existed in India.
I remember my first B737,A330 and B77W flights with them.
RIP 9W.

I first boarded Jet in around 2001 when I was 2 years old for MAA-Port Blair !! I still have some memories of a small 9W bagpack that they gave me, and when FA's came with a tray full of toffees as an antidote to the pain in my ears !!
 
edealinfo
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 4:30 pm

sibibom wrote:
Just noticing Jet is down just Mumbai from Delhi! All other destinations have been suspended....

I can’t find any reports that Say that Jet is now only operating flights from Mumbai and New Delhi alone and no other Indian city. where did you read it?
 
edealinfo
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 4:33 pm

If Jet goes belly up in the next few days it will be a chaotic disruption. didn’t this happen exactly the way with Kingfischer? has India not learnt?
 
sibibom
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 4:33 pm

There are few mentioned on FR24 at the moment for tomorrow. But rumors suggest otherwise, we will find out tomorrow.
 
anshabhi
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 4:36 pm

edealinfo wrote:
If Jet goes belly up in the next few days it will be a chaotic disruption. didn’t this happen exactly the way with Kingfischer? has India not learnt?

For the most part, India had nothing doable at all.
 
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unrave
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 4:39 pm

edealinfo wrote:
If Jet goes belly up in the next few days it will be a chaotic disruption. didn’t this happen exactly the way with Kingfischer? has India not learnt?

You do realise that less than a third of Jet's flights are operating currently, don't you? How much more chaos would a hypothetical cancellation of the remaining flights cause?
Denial of racism is as egregious as racism itself
 
blr380
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 4:43 pm

edealinfo wrote:
sibibom wrote:
Just noticing Jet is down just Mumbai from Delhi! All other destinations have been suspended....

I can’t find any reports that Say that Jet is now only operating flights from Mumbai and New Delhi alone and no other Indian city. where did you read it?

I just booked a flight for IAH-BLR on QR. When I checked last week I had the option of 9W from AMS - its not showing anymore. I am glad in a way that I didn't purchase it last week. Not sure if AMS routes are still bookable
 
edealinfo
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 4:45 pm

unrave wrote:
edealinfo wrote:
If Jet goes belly up in the next few days it will be a chaotic disruption. didn’t this happen exactly the way with Kingfischer? has India not learnt?

You do realise that less than a third of Jet's flights are operating currently, don't you? How much more chaos would a hypothetical cancellation of the remaining flights cause?

To the same extent as it presumably was with KingFisher. My point is that India should have learned lessons from the KingFisher bankruptcy. Yes since October 2018, when things began to look bad, the could have acted quickly but dragged their feet for 5 months. This is inexcusable. Also I think SEBI is to blame for not exempting Etihad from making an offer to buy an additional 26 percent. Only in India, would they rather have an airline go belly up, than provide an exemption that not many would have objected to , given that the intent of that exemption is a chance to save an airline that directly employed 20k and possibly indirectly contributed to another 40k jobs.

Now, the banks lose big time.
 
anshabhi
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 4:50 pm

edealinfo wrote:
sibibom wrote:
Just noticing Jet is down just Mumbai from Delhi! All other destinations have been suspended....

I can’t find any reports that Say that Jet is now only operating flights from Mumbai and New Delhi alone and no other Indian city. where did you read it?


BOM airport's website shows up no flights for 9W intl departures and only about 10 domestic departures for tomorrow morning

https://csia.in/flightinformation/passenger-flight.aspx
 
Crazy4Planes
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 5:11 pm

I don’t think Jet would go bust, lenders led by SBI will buy a stake and when the operations are back on track, they will sell their stake to a potential buyer.
 
edealinfo
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 5:20 pm

Per the Times of India.....looks like the banks are not going to give up....politics trumps economics


“Lenders of cash-strapped Jet Airways are in the process of securing "substantial stake" in the ailing airline to try and revive it to a manageable state before selling it to new promoters, a senior Finance Ministry source said on Friday.

"Only after securing substantial stake in the airline, the lenders are planning to sell Jet Airways, and the existing promoters need to exit before new buyers can be roped in", he said.”
 
avier
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 5:26 pm

anshabhi wrote:
sibibom wrote:
Just noticing Jet is down just Mumbai from Delhi! All other destinations have been suspended....


I will miss Jet for the days when no other good airline existed in India.
I remember my first B737,A330 and B77W flights with them.
RIP 9W.

I first boarded Jet in around 2001 when I was 2 years old for MAA-Port Blair !! I still have some memories of a small 9W bagpack that they gave me, and when FA's came with a tray full of toffees as an antidote to the pain in my ears !!


Uhh, nostalgia. From around the time they started ops, was around the time when I was born. I think I flew them exclusively out of BOM on domestic for almost a decade, after those other bunch of airlines of the 1990's went bust. I only flew with them (domestic) straight up until around 2007, when I took a 6E and SG flight then for the first time.
BOM-IXE on 9W will be the most memorable, flying them only on that route my whole life time almost. =(
Will be a pain to fly out of BOM and have no Flying sun-tailed planes in sight. =(
 
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Spiderguy252
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 5:37 pm

blr380 wrote:
I just booked a flight for IAH-BLR on QR. When I checked last week I had the option of 9W from AMS - its not showing anymore. I am glad in a way that I didn't purchase it last week. Not sure if AMS routes are still bookable


Even before last week, the signs were clear. They've been clear for several months now: don't book a 9W ticket for your own good.
Vahroone
 
edealinfo
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 5:52 pm

blr380 wrote:
edealinfo wrote:
sibibom wrote:
Just noticing Jet is down just Mumbai from Delhi! All other destinations have been suspended....

I can’t find any reports that Say that Jet is now only operating flights from Mumbai and New Delhi alone and no other Indian city. where did you read it?

I just booked a flight for IAH-BLR on QR. When I checked last week I had the option of 9W from AMS - its not showing anymore. I am glad in a way that I didn't purchase it last week. Not sure if AMS routes are still bookable


I wonder if this means that Delta/KLM/Air France have pulled their code share flights on Jet
 
klakzky123
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 6:06 pm

Spiderguy252 wrote:
blr380 wrote:
I just booked a flight for IAH-BLR on QR. When I checked last week I had the option of 9W from AMS - its not showing anymore. I am glad in a way that I didn't purchase it last week. Not sure if AMS routes are still bookable


Even before last week, the signs were clear. They've been clear for several months now: don't book a 9W ticket for your own good.


Or if you are going to, book with a travel agent or a DL/AF/KL/VS codeshare. At least in those instances you'll get re-booked if they go under.
 
WPvsMW
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 6:31 pm

9W can't go under until after the election. Might be down to one flight per day.... then the day after Modi is reelected, the IBBI hearse pulls up.
 
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Spiderguy252
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 7:19 pm

WPvsMW wrote:
9W can't go under until after the election. Might be down to one flight per day.... then the day after Modi is reelected, the IBBI hearse pulls up.


Jet Airways is not going to decide any election.
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 7:20 pm

edealinfo wrote:
blr380 wrote:
edealinfo wrote:
I can’t find any reports that Say that Jet is now only operating flights from Mumbai and New Delhi alone and no other Indian city. where did you read it?

I just booked a flight for IAH-BLR on QR. When I checked last week I had the option of 9W from AMS - its not showing anymore. I am glad in a way that I didn't purchase it last week. Not sure if AMS routes are still bookable


I wonder if this means that Delta/KLM/Air France have pulled their code share flights on Jet

9W code share flights are showing only from ST hubs. Try ATL. I just checked SFO-BOM and it’s not showing 9W flights but ATL is still showing
 
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lightsaber
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 7:27 pm

To those noting a Jet shutdown will cause a disruption, how could it get measurably worse? The majority of flights are not opperating. Passengers must be booking away. Last minute fares need to go to their destination. Who would book forward?

Jet is done. The banks should be prevented from destroying their investment funds. Put a fork in them, it might take a little time to fully shutdown Jet, but they are done.

We are talking about spending $1.5 billion to keep 40 aircraft flying. You could buy 40 used 737ng for $1.5 billion! That is insane to throw away that much money.

Jet was savable in October when this thread started. I feel for the Indian taxpayers. Goyal should have to personally pay the unpaid worker dues.

anshabhi wrote:
edealinfo wrote:
sibibom wrote:
Just noticing Jet is down just Mumbai from Delhi! All other destinations have been suspended....

I can’t find any reports that Say that Jet is now only operating flights from Mumbai and New Delhi alone and no other Indian city. where did you read it?


BOM airport's website shows up no flights for 9W intl departures and only about 10 domestic departures for tomorrow morning

https://csia.in/flightinformation/passenger-flight.aspx

Only a few domestic flights at BOM? Their premier hub has only ten domestic departures?!?

They must have run out of money for international fuel.

Will the banks seriously forfeit $1.5 billion USD for a mere 16,000 jobs? Or $93,750 per job?!? How in the world is that math justified?

Jet might function at this level until the election. Without their international flights, what exactly is their value?

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edealinfo
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 7:43 pm

Spiderguy252 wrote:
WPvsMW wrote:
9W can't go under until after the election. Might be down to one flight per day.... then the day after Modi is reelected, the IBBI hearse pulls up.


Jet Airways is not going to decide any election.

But the politicians have psyched themselves into thinking so. also, modi’s advisors don’t feel the Government should take any risk as they are so close to the finish line (in terms of the chances to win the national elections). As the Government, they are entitled by Indian custom, to use their piggy bank (public sector banks) for any political purpose should they choose to do so. But, with vestiges of free press remaining, there could also be criticism. Also, the Congress party is already on this and is hammering away which makes for very interesting times.
If Tata is to issue a press statement that they are not interested in Jet, that would settle the issue. But, Tata is close to Modi and probably doesn’t want to upset the applecart so they will keep quiet. and, the circus will continue.
 
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lightsaber
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 8:26 pm

How many flights does Jet have scheduled for tomorrow? All indications are the 150/day number is obsolete. However, I'd like to know the reality, not the rumor.

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edealinfo
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 9:25 pm

lightsaber wrote:
How many flights does Jet have scheduled for tomorrow? All indications are the 150/day number is obsolete. However, I'd like to know the reality, not the rumor.

Lightsaber

I thought 189 or 183 number is the normal full schedule. If not, could someone indicate the normal schedule and the one for tomorrow.
 
edealinfo
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 9:43 pm

Per a Nov 2018 Business Standard article, Jet at that time held 40 percent of domestic and 25 percent of international traffic out of Mumbai airport. This was the main reason Tata was attracted to Jet
 
edealinfo
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Re: Jet Airways: reports cash running out

Fri Mar 22, 2019 10:07 pm

I thought 189 or 183 number is the normal full schedule ( I am unclear if this is only departures, or departures plus arrivals). If not, could someone indicate the normal schedule and the one for tomorrow?
 
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unrave
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Re: Jet Airways: reports cash running out

Sat Mar 23, 2019 12:06 am

edealinfo wrote:
unrave wrote:
edealinfo wrote:
If Jet goes belly up in the next few days it will be a chaotic disruption. didn’t this happen exactly the way with Kingfischer? has India not learnt?

You do realise that less than a third of Jet's flights are operating currently, don't you? How much more chaos would a hypothetical cancellation of the remaining flights cause?

To the same extent as it presumably was with KingFisher. My point is that India should have learned lessons from the KingFisher bankruptcy. Yes since October 2018, when things began to look bad, the could have acted quickly but dragged their feet for 5 months. This is inexcusable. Also I think SEBI is to blame for not exempting Etihad from making an offer to buy an additional 26 percent. Only in India, would they rather have an airline go belly up, than provide an exemption that not many would have objected to , given that the intent of that exemption is a chance to save an airline that directly employed 20k and possibly indirectly contributed to another 40k jobs.

Now, the banks lose big time.

No SEBI did absolutely the right thing here. Rules are rules for a reason. If Jet can't find funds in time they should go. Many companies fold in India every year and jobs go along with them. C'est la vie.
Denial of racism is as egregious as racism itself
 
edealinfo
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Re: Jet Airways: reports cash running out

Sat Mar 23, 2019 1:07 am

I looked at dummy booking options from New York to Bombay leaving April and returning May, and viola, one can book flights with their partners -- Virgin, Delta, KLM and Delta (1 flight on partner airline and 1 flight on Jet) . So, at least these 4 airlines haven't locked Jet airways out, as yet. Do they know something we do not know about Jet's chances for survival?
 
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aemoreira1981
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Re: Jet Airways: reports cash running out

Sat Mar 23, 2019 1:35 am

vadodara wrote:
Swiss Air is precisely the story here. At least in case of Zurich, there was a certain amount of captive market to run point to point services profitably.

Swiss got into trouble trying to grow ZRH into a hub with wide bodies.

Precisely the path Jet took albeit with poor infrastructure and possibly a smaller amount of premium traffic.


Swissair (SR)'s major problem was diversification into fields that had nothing to do with flying planes, as well as the Hunter strategy, especially investing into the perennial money pit that was Sabena. The credit of the Swiss government is what allowed a seamless transition to Swiss (LX). However, Switzerland is a high J market.

Separately, I suspect that this is why DL hasn't formally announced a schedule into India, and I can't blame them. It's also a shame that 9W doesn't even own slots into Heathrow anymore (they're leased from EY).
 
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aemoreira1981
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Re: Jet Airways: reports cash running out

Sat Mar 23, 2019 1:54 am

blrsea wrote:
Hmm, looks like Jet needs a suitor with pretty long pockets ...

Jet Airways needs around Rs 10,000 crore worth of infusion: Industry insiders

NEW DELHI/MUMBAI: A proposed infusion of Rs 1,000 crore into Jet AirwaysNSE 3.43 % may prove to be "too little too late" to save the airline as it might require at least Rs 10,000 crore to stay afloat, industry observers said on Friday.

"The airline alone has estimated advance ticket sales of Rs 1,500-2,000 crore. There are total payables and debt of Rs 25,000 crore. Anything short of Rs 10,000 crore might not have a dent on the current situation that the airline is going through," said an industry source.
..

"This (Rs 1,000 crore) amount is not enough even to clear salaries and refund passengers for cancelled tickets," said another sectoral expert.
...


To give an example of how much that is in US dollars (rounded to nearest million):

₹10,000 crore: $1.446 billion
₹25,000 crore: $3.614 billion

A vendor would be crazy right now to not demand cash upfront for ramp services. Indian banks should only lend 9W's creditors money needed to release owned aircraft that may be seized at foreign outstations. It would not even make sense for a "bad bank" to lend 9W money beyond that.

I also suspect that this is why DL has not announced a schedule into India. As for wide-bodies, especially the A330s (both the owned and leased frames at 9W), might 6E be interested in a short-term wide-body lease until it decides on what wide-bodies it wants to order directly from Airbus? 6E could get much better lease terms, and they would only need to reach Europe. 6E would have no desire for those B77Ws (which are owned by 9W). I expect March 31 to be the last day for 9W.

As for AMS, might KL launch a red-eye AMS-BOM departure to replace service on 9W? (Delta's DL48/9 used to be JFK-AMS-BOM before it was cut back to AMS, usually on a B763, inherited from Pan Am.)
 
Bhadra
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Re: Jet Airways: reports cash running out

Sat Mar 23, 2019 2:11 am

unrave wrote:
No SEBI did absolutely the right thing here. Rules are rules for a reason. If Jet can't find funds in time they should go. Many companies fold in India every year and jobs go along with them. C'est la vie.


+1
SEBI's regulation around open offer is extremely fair.
Darwinism applies to corporations as well; weak and inefficient must perish to make way for strong and efficient ones to thrive and evolve.
I'm happy that the (non-aviation) economy appears to have absorbed disappearance of Jet (well, almost) like nothing ever happened!
 
anshabhi
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Re: Jet Airways: reports cash running out

Sat Mar 23, 2019 2:58 am

aemoreira1981 wrote:
To give an example of how much that is in US dollars (rounded to nearest million):

₹10,000 crore: $1.446 billion
₹25,000 crore: $3.614 billion

A vendor would be crazy right now to not demand cash upfront for ramp services. Indian banks should only lend 9W's creditors money needed to release owned aircraft that may be seized at foreign outstations. It would not even make sense for a "bad bank" to lend 9W money beyond that.

I also suspect that this is why DL has not announced a schedule into India. As for wide-bodies, especially the A330s (both the owned and leased frames at 9W), might 6E be interested in a short-term wide-body lease until it decides on what wide-bodies it wants to order directly from Airbus? 6E could get much better lease terms, and they would only need to reach Europe. 6E would have no desire for those B77Ws (which are owned by 9W). I expect March 31 to be the last day for 9W.

As for AMS, might KL launch a red-eye AMS-BOM departure to replace service on 9W? (Delta's DL48/9 used to be JFK-AMS-BOM before it was cut back to AMS, usually on a B763, inherited from Pan Am.)


Ultimately, every loan in India is signed by a bank official, and it signifies his personal responsibility for the loan. With all the action against bank officials in Kingfisher, Nirav Modi and other scams, its very unlikely that any bank officer will buckle under even severe political pressure.
 
VTCIE
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Re: Jet Airways: reports cash running out

Sat Mar 23, 2019 3:01 am

anshabhi wrote:
sibibom wrote:
Just noticing Jet is down just Mumbai from Delhi! All other destinations have been suspended....


I will miss Jet for the days when no other good airline existed in India.
I remember my first B737,A330 and B77W flights with them.
RIP 9W.

I first boarded Jet in around 2001 when I was 2 years old for MAA-Port Blair !! I still have some memories of a small 9W bagpack that they gave me, and when FA's came with a tray full of toffees as an antidote to the pain in my ears !!


I had the same experience. I was two years old in 2002 and flew 9W CCU-MAA. I was born in Kolkata and have lived in Chennai ever since 2002. I remember that they gave a JetKids bag and colouring book. I do not know when this was discontinued.

edealinfo wrote:
sibibom wrote:
Just noticing Jet is down just Mumbai from Delhi! All other destinations have been suspended....

Wow, that is indeed a low point. Can you confirm that they have suspended MAA/BLR to CDG/AMS? If so, then KLM/Air France/Delta would be pissed.


MAA-CDG and BLR-AMS are normal as of now. I believe 9W’s network out of MAA consists of only MAA-BOM, MAA-DEL, MAA-BLR and MAA-CDG at this point.
In grieving remembrance of the thousands of people who lost their lives on ET-AVJ, PK-LQP, XA-UHZ, S2-AGU, CP-2933, SU-GCC, EI-ETJ, D-AIPX, PK-AXC, 9M-MRD, VT-AXV and above all 9M-MRO, besides many more. Your deaths are not in vain. Safety first, always.
 
blrsea
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Re: Jet Airways: reports cash running out

Sat Mar 23, 2019 3:26 am

Looks like there is no consensus among lenders on the resolution plan. Read the article in full. Makes some good points.

Crisis-hit Jet Airways' lenders struggle for consensus on revival plan

The lenders to Jet Airways are yet to come to an agreement on firming up a rescue package for the airline, which is left with a skeleton fleet. While State Bank of India (SBI), leader of the lenders’ consortium, is working overtime to arrange emergency funds, many other banks are resisting such a move. After a meeting of banks on Friday on ways to make funds available immediately, a source in the know said lenders other than SBI and Punjab National Bank had not come on board so far to chip in with their funds.

A senior executive at SBI said, “We have told the government that any rescue plan will have to meet our commercial objectives. In the last few days, it has become more complicated without airline partner Etihad’s participation.”
...
Indicating that a rescue plan is extremely tough at this stage, an official in the civil aviation ministry said one should be ready for a scenario without Jet Airways. “At least in the near term, there is no sign of the airline reviving. Hence, we are preparing to redistribute and allocate airport slots held by Jet Airways,” he said.
...
Industry executives also suggested that SBI, which is planning to hold a majority stake in Jet, will find it very hard to get a buyer. Banks do not have a good track record of finding buyers for companies in which they have done debt-equity restructuring.

That had prompted former SBI chairman Arundhati Bhatt­acharya to say that banks taking ownership doesn’t work out unless they have an immediate plan to transfer ownership and a concrete plan about the roadmap of the company.
...
 
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unrave
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Re: Jet Airways: reports cash running out

Sat Mar 23, 2019 4:00 am

There are reports that unpaid dues to vendors could run into several thousand crore rupees. If that's true, no investor is touching Jet with a ten feet pole. It will have to go the NCLT.
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binayak
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Re: Jet Airways: reports cash running out

Sat Mar 23, 2019 5:02 am

VTCIE wrote:
I had the same experience. I was two years old in 2002 and flew 9W CCU-MAA. I was born in Kolkata and have lived in Chennai ever since 2002. I remember that they gave a JetKids bag and colouring book. I do not know when this was discontinued.


2006-07 . The same year they discontinued the "free toy plane " to kids too. Even today I have four models of their 737s in old livery which I received while flying them in '90s .
The best preparation for tomorrow is doing your best today
 
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lightsaber
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Re: Jet Airways: reports cash running out

Sat Mar 23, 2019 5:36 am

blrsea wrote:
Looks like there is no consensus among lenders on the resolution plan. Read the article in full. Makes some good points.

Crisis-hit Jet Airways' lenders struggle for consensus on revival plan

The lenders to Jet Airways are yet to come to an agreement on firming up a rescue package for the airline, which is left with a skeleton fleet. While State Bank of India (SBI), leader of the lenders’ consortium, is working overtime to arrange emergency funds, many other banks are resisting such a move. After a meeting of banks on Friday on ways to make funds available immediately, a source in the know said lenders other than SBI and Punjab National Bank had not come on board so far to chip in with their funds.

A senior executive at SBI said, “We have told the government that any rescue plan will have to meet our commercial objectives. In the last few days, it has become more complicated without airline partner Etihad’s participation.”
...
Indicating that a rescue plan is extremely tough at this stage, an official in the civil aviation ministry said one should be ready for a scenario without Jet Airways. “At least in the near term, there is no sign of the airline reviving. Hence, we are preparing to redistribute and allocate airport slots held by Jet Airways,” he said.
...
Industry executives also suggested that SBI, which is planning to hold a majority stake in Jet, will find it very hard to get a buyer. Banks do not have a good track record of finding buyers for companies in which they have done debt-equity restructuring.

That had prompted former SBI chairman Arundhati Bhatt­acharya to say that banks taking ownership doesn’t work out unless they have an immediate plan to transfer ownership and a concrete plan about the roadmap of the company.
...

The bankers realize that the debt is too high.

Reading that article, I am of the opinion the bankers have realized the extent of added liability.

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Spiderguy252
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Re: Jet Airways: reports cash running out

Sat Mar 23, 2019 5:38 am

So when in your opinion was the beginning of the end?

IMO it was when they decided to spread their wings too much, too fast. People make fun of Mallya and Kingfisher ordering 5 each of every Airbus widebody - Jet's adhoc purchases of 10 x A330, 10 x 777 and 10 x 787 were no better. Then the flip flopping over their Brussels hub, ambitious routes that had to be culled soon after launch such as BOM-JNB, BOM-MXP and BOM-PVG-SFO. Then who can forget Konnect?

Etihad's entry in 2013/14 only kicked the can for another half a decade. And they're hardly the paragons of running an airline well - have a look at their 'investments' around the world.

Bottomline - Jet were a great airline when the only competition was a rickety Indian Airlines (IC). The moment skies were liberalized and the likes of IndiGo came to the fore with their giga-hundreds of aircraft and flights, they had nowhere to run. They aren't funded by the taxpayer like AI are either.

It was fun while it lasted. RIP Jet Airways 1993 - 2019.
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DTWLAX
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Re: Jet Airways: reports cash running out

Sat Mar 23, 2019 6:14 am

aemoreira1981 wrote:

As for AMS, might KL launch a red-eye AMS-BOM departure to replace service on 9W? (Delta's DL48/9 used to be JFK-AMS-BOM before it was cut back to AMS, usually on a B763, inherited from Pan Am.)

Why will KL launch a red-eye AMS-BOM? People are mostly connecting from the USA to India on 9W. Most of the transatlantic flights arrive in the morning at AMS. Who will be willing to wait an entire day at AMS for a connection? KL may just re-time their existing AMS-BOM flight on the 789 and make it daily.
Is KLM restricied by the number of weekly flights into India?
 
CaliguyNYC
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Re: Jet Airways: reports cash running out

Sat Mar 23, 2019 8:17 am

For jet is done. Now the lenders should quickly sell of the pieces. That is what confuses me on this board. Why do people think the right thing to do is just shut jet down. That is not what happens. Look at Pan Am. The banks should sell off Jet’s BOM hub (slots and planes) to Vistara or whom ever. Why destroy all the value of Jet’? It makes no sense. But half the post on this board make no sense unless your goal is to just close Jet. And obviously any sale by the banks should sure EY and Goyal.
 
photomosaic
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Re: Jet Airways: reports cash running out

Sat Mar 23, 2019 8:33 am

unrave wrote:
There are reports that unpaid dues to vendors could run into several thousand crore rupees. If that's true, no investor is touching Jet with a ten feet pole. It will have to go the NCLT.


What's left in liquidation--equity in owned birds and the building in BKC? How much could banks recovery for that?
 
sibibom
Posts: 368
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Re: Jet Airways: reports cash running out

Sat Mar 23, 2019 8:40 am

CaliguyNYC wrote:
For jet is done. Now the lenders should quickly sell of the pieces. That is what confuses me on this board. Why do people think the right thing to do is just shut jet down. That is not what happens. Look at Pan Am. The banks should sell off Jet’s BOM hub (slots and planes) to Vistara or whom ever. Why destroy all the value of Jet’? It makes no sense. But half the post on this board make no sense unless your goal is to just close Jet. And obviously any sale by the banks should sure EY and Goyal.


Nivaan Goyal is that you....? It's not anyone wanting something, its just business and the consequence of the decisions taken by EY and Goyal, not us sitting as armchair CEOs. So far the only one that hasn't made sense if people like you.
 
Andy33
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Re: Jet Airways: reports cash running out

Sat Mar 23, 2019 9:24 am

CaliguyNYC wrote:
The banks should sell off Jet’s BOM hub (slots and planes) to Vistara or whom ever. Why destroy all the value of Jet’? It makes no sense. But half the post on this board make no sense unless your goal is to just close Jet. And obviously any sale by the banks should sure EY and Goyal.


Hardly any of the planes are actually owned, or Jet wouldn't be in the mess they are. Some of the 77Ws and A330s are owned, but may well have mortgages on them. Almost all the 737s and smaller are leased, and day by day more are being repossessed because Jet have no way of making the lease payments. Slots at BOM are not tradeable, so while they certainly have a commercial value, there is no way of turning that into cash. Slots at LHR are tradeable, but guess what, Jet already traded them, to EY in exchange for an earlier bailout
 
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Phosphorus
Posts: 529
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Re: Jet Airways: reports cash running out

Sat Mar 23, 2019 9:57 am

Andy33 wrote:
CaliguyNYC wrote:
The banks should sell off Jet’s BOM hub (slots and planes) to Vistara or whom ever. Why destroy all the value of Jet’? It makes no sense. But half the post on this board make no sense unless your goal is to just close Jet. And obviously any sale by the banks should sure EY and Goyal.


Hardly any of the planes are actually owned, or Jet wouldn't be in the mess they are. Some of the 77Ws and A330s are owned, but may well have mortgages on them. Almost all the 737s and smaller are leased, and day by day more are being repossessed because Jet have no way of making the lease payments. Slots at BOM are not tradeable, so while they certainly have a commercial value, there is no way of turning that into cash. Slots at LHR are tradeable, but guess what, Jet already traded them, to EY in exchange for an earlier bailout


The irony is, with the jump of 737NG value over the whole 737MAX debacle, the incentive to reallocate narrowbodies from Jet to other customers has grown.

And yes, the BOM hub probably is very valuable. If it's true that slots are not transferable, than the proper way is to look to split slots (and whatever else it takes to anchor them: AOC? some planes? lease rights?) into a separate company ("CleanCo" of sorts) and immediately sell it to the highest bidder. Otherwise this value will be quickly wiped out in collapse of service, when slots will be taken away for free, and there'll be no chance to operate that hub.
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