Naresh Goyal must decide now — whether Jet Airways lives without him or dies with him

Jet Airways is in extensive talks with lenders and lessors regarding its debt restructuring. Sources indicate that lenders are caught between a rock and a hard place as a default will mean they lose most of their capital while a restructuring would be contingent on providing additional loans.

At the core of the issue is the fact that Jet Airways loses more money than it earns. This is highlighted by a loss per available seat kilometre. In other words, the cost of flying each seat exceeds the revenue earned from the seat. For the second quarter of fiscal 2018-19, Jet lost Rs 0.59 for every seat flown every kilometre.

The way out of this is to boost revenues and cut costs – so that lenders feel certain that the debt repayments will come through. Read More

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