How Jet Airways wants to turn its accounts around
In accordance with the decisions of the Board of Directors on August 27, 2018, Indian carrier Jet Airways worked on various cost reduction, debt reduction and financing options, including capital injection, asset monetization, company participation in its loyalty program, in consultation with various key stakeholders.
In addition, following a delay by the Company in the payment of advances and principal payments due to the consortium of Indian banks – led by the State Bank of India (SBI) – on 31 December 2018, SBI, in consultation with other consortium members and other stakeholders, worked on a global plan to turn Jet Airways around to ensure its sustainable growth and financial recovery.
The aforementioned recovery plan notably considers various options relating to the debt/fund mix, the injection of equity by the various stakeholders and the subsequent change in the composition of the Company’s Board of Directors.
« Needless to say, the implementation of the recovery plan, once accepted and approved by all stakeholders – including the Company’s Board of Directors – will be subject to the receipt of applicable legal, regulatory, contractual and corporate approvals and consents » states Jet Airways’ Management.
He added « We would like to point out that the recovery plan is currently the subject of active discussions between the stakeholders and that the various options contained therein, both privileged and confidential, have yet to be specified and accepted by the stakeholders in the best interest of the Company. The Company is committed to complying with applicable laws and will make, at the appropriate time, the necessary declarations to ensure transparency and to avoid speculation and rumours concerning the subject treated« .