Financial turbulence: At Jet Airways, history repeats itself 5 years later

Airline has run into financial turbulence and is losing Rs 50-100 million every day

Five years after it sold 24 per cent in the company to Abu Dhabi-based Etihad Airways, Naresh Goyal-led Jet Airways is facing financial turbulence again.

“The airline is losing Rs50-100 million daily in operations. Banks have not acceded to requests for deferring payments. They are not willing to restructure loans, either. If things continue the way they are, the airline will begin defaulting on payments,” said a source familiar with the developments.

Sources say banks are also wary of rescheduling loan payments, leading to fears of defaults.

As a cost-cutting measure, the airline has implemented a 5-25 per cent pay