Jet Airways to generate cash to meet obligations
Jet Airways has plans to raise funds partly through the sale and lease back of aircraft to support the loss-making JetLite.
By Agencies | Updated:
MUMBAI: Jet Airways Ltd said on Tuesday that it was confident of generating enough cash to meet its obligations and has plans to raise funds partly through the sale and lease back of aircraft.
Earlier on Tuesday, auditors of Jet, India's biggest airline, had said the company needs to raise funds or generate cash flows in the future to meets its obligations, including financial support to its loss-making subsidiary JetLite.
"As we are entering the peak season, the yields are on the rise and together with the cost reduction programme that we have put in place, our operational cash flows will improve significantly," Jet Airways said in a statement to Reuters.
Deloitte Haskins & Sells and Chaturvedi & Shah said in a report dated Nov. 11 that raising money is crucial if Jet's accounts have to be prepared on a "going concern basis" in the future, the company the Bombay Stock Exchange.
Earlier this month, Jet swung to a net loss, compared with a profit a year ago, hurt by rising fuel prices and a forex loss in the quarter.
"Abnormally high fuel costs, a low fares scenario induced by demand-supply imbalance, together with a depreciating rupee versus the dollar, and fare cuts have collectively impacted the second quarter performance of Jet Airways," Nikos Kardassis, chief executive of Jet Airways, had said in a statement.
In September, auditors of smaller rival Kingfisher Airlines had warned that the airline needed to infuse funds to continue as a "going concern".
Airline sector is struggling under rising fuel costs and a heavy debt burden, making it tough for them to raise funds and forcing cancellation of aircraft orders.
Aviation industry analysts say all Indian airlines require urgent funding, as only one carrier -- IndiGo -- is in profit.
Earlier on Tuesday, auditors of Jet, India's biggest airline, had said the company needs to raise funds or generate cash flows in the future to meets its obligations, including financial support to its loss-making subsidiary JetLite.
"As we are entering the peak season, the yields are on the rise and together with the cost reduction programme that we have put in place, our operational cash flows will improve significantly," Jet Airways said in a statement to Reuters.
Deloitte Haskins & Sells and Chaturvedi & Shah said in a report dated Nov. 11 that raising money is crucial if Jet's accounts have to be prepared on a "going concern basis" in the future, the company the Bombay Stock Exchange.
Earlier this month, Jet swung to a net loss, compared with a profit a year ago, hurt by rising fuel prices and a forex loss in the quarter.
"Abnormally high fuel costs, a low fares scenario induced by demand-supply imbalance, together with a depreciating rupee versus the dollar, and fare cuts have collectively impacted the second quarter performance of Jet Airways," Nikos Kardassis, chief executive of Jet Airways, had said in a statement.
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In September, auditors of smaller rival Kingfisher Airlines had warned that the airline needed to infuse funds to continue as a "going concern".
Airline sector is struggling under rising fuel costs and a heavy debt burden, making it tough for them to raise funds and forcing cancellation of aircraft orders.
Aviation industry analysts say all Indian airlines require urgent funding, as only one carrier -- IndiGo -- is in profit.
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