Jet Airways India Ltd was once at the forefront of India’s rapidly growing market for air travel, but a challenge from budget carriers and surging fuel prices are backing the airline into a corner.
The carrier, part-owned by Etihad Airways PJSC, postponed announcing its first-quarter earnings on Thursday, less than a week after denying a report that it needs drastic measures to cut costs and bolster its finances.
Mumbai-based Jet Airway’s shares have slumped this year as its finances deteriorated and the default risk on its debt obligations increased. On Friday, Jet Airways shares plunged as much as 13.29% to Rs 261.60 in opening trade.
Budget airlines such as IndiGo, GoAir and SpiceJet expanded exponentially in the past decade, giving first-time flyers a new opportunity and middle-class families an alternative to full-service carriers that offered lounges and free meals on board. Read More