Auditors of Jet Airways have warned that the company's continuance as a "going concern" depend on deeper synergies with Etihad Airways and its ability to raise funds in the future. Wholly owned subsidiary JetLite posted significantly higher losses in FY14 than the previous fiscal and had negative net worth as on 31 March, 2014.
In other words, unless the partnership with Etihad works out, more cash flows are generated by the Jet Airways' management and JetLite is offloaded, the airline will remain in serious financial trouble.
Jet has been steadily losing market share last few months in the domestic market but now, an even tougher operating environment could develop as two new airlines arrive on the scene. This could put pressure on fares and make a turnaround that much tougher for Jet Airways.
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In other words, unless the partnership with Etihad works out, more cash flows are generated by the Jet Airways' management and JetLite is offloaded, the airline will remain in serious financial trouble.
Jet has been steadily losing market share last few months in the domestic market but now, an even tougher operating environment could develop as two new airlines arrive on the scene. This could put pressure on fares and make a turnaround that much tougher for Jet Airways.
Read news in full firstbiz.firstpost.com
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