Jet needs to cut costs, Goyal warns employees


Jet Airways (India) Ltd chairman Naresh Goyal has warned employees that the airline needs to cut costs as it combines its network with that of Abu-Dhabi-based Etihad Airways PJSC, which has bought a 24% stake in Jet.

The warning comes after Jet announced a record loss of nearly Rs.1,000 crore in the September quarter and analysts said that a major part of the infusion from Etihad may have been wiped out.

The deal was worth $900 million (around Rs.5,616 crore today)—$379 million in equity in the airline, $150 million in equity in Jet Airways’ frequent flyer programme, $70 million from the sale and leaseback of three pairs of Heathrow airport slots and $300 in million debt financing.

Full report here Mint 


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