Go to any Indian airport, and it’ll appear that nearly all of the country’s billion-plus people have decided to fly. Yet talk to shareholders of India’s largest aviation businesses, and they’ll tell you how miserable they are.
Oxygen masks have been down since last month’s 97 percent drop in quarterly profit for InterGlobe Aviation Ltd., which operates IndiGo, the budget carrier with almost two-fifths of India’s domestic market.
Rising fuel costs make for an even shorter runway at Jet Airways India Ltd., which is burdened with $1.2 billion in net debt in contrast to IndiGo’s $1.6 billion of net cash. India’s second-largest carrier was forced to postpone its fiscal first-quarter results on Thursday after the audit committee, comprising three independent directors and one representative of equity partner Etihad Airways PJSC, refused to approve the accounts.
Following a one-week-old Economic Times report about a cash crunch, denied by the company as “inaccurate” and “malicious,” Jet has now appointed a committee to improve public perception of the airline. Read More