Jet Airways India Limited must Be Ready for A Bigger Crisis than Kingfisher Airline Ltd
Once being at the forefront of India’s rapidly growing Aviation market, Jet Airways India Limited had landed into a bigger crisis due to budget carriers and soaring fuel prices.
Jet Airways India Limited [The Aviation company], part-owned by Etihad Airways, witnessed a fall in the share prices by Aprox 8% after the company postponed announcing its first-quarter earnings. Experiencing huge Crisis, Jet Airways India Limited [the company ] is in a drastic need of measures to cut down its costs and boost its fiscal growth. The Jet Airways India Limited Stock ended at its lowest since June 2015 as the Jet Airways India Limited’s finances deteriorated and the default risk on its debt obligations increased.
Jet Airways celebrated its 25th anniversary a few months back in May and the statements from Jet Airways India Limited Chairman attributed word of supreme confidence. However, later the headlines hit that Jet Airways India Limited giant had cash left just enough to survive for 60 days more. This is said to be a major reason to put the stock into a crash nearly to its 50-week low.
According to the reports of Bloomberg-compiled data, Mumbai-based Jet Airways India Limited [Airline Company ] has total liabilities of around Rs.9400 crore as of March 2018.
The Jet Airways India Limited [firm’s] overall liabilities boomed to 55.4 times earnings before interest and tax as of March 31, compared with 4.9 times the previous year, the data showed.
On the other hand, Jet Airways’s rivals like Kingfisher and IndiGo are faring no better either. The entire sector has been in crunch of fiscal growth due to factors like rising fuel prices, depreciation of Indian currency, and debt to fund Aircraft purchases.
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