The Situation at Jet Airways
The Indian Aviation Industry is one that never sleeps with developments from airlines within the country constantly occurring.
It has now been reported that Jet Airways has accumulated a $178 Million loss for the third quarter. This comes as the airline attempts to deal with the higher than average fuel prices and also the low cost units throughout India offering cheaper flights.
The airlines troubles began just months ago when it reported it was unable to pay its staff on time due to cash constraints.
To attempt to fix these losses the airline has said that it’ll welcome onboard further Boeing 737 MAXs which will mean it can cut all uneconomic routes. The 737MAX means it can also save extra money on select routes it continues to operate.
It doesn’t stop there for Jet Airways, Tata is eyeing an investment in the airline. This is according to people who are close to the matter. Tata would only invest in the airline if they came out with a majority stake in the airline.
This would mean the airline would leave the hands of the founder of the airline for the first time ever. It’s unknown whether at this stage Jet Airways would be open to this but the two are apparently discussing the potential investment.
This investment would allow the problems at Jet Airways to ease dramatically. Should they not wish to take the potential offer it’s going to be a struggle for the airline to come out of this financial stress with airlines like Indigo offering a better alternative for people wishing to travel throughout the country and also internationally.
Image: Maarten Visser