We announced on Monday that Jet Airways was in great difficulty, the situation has deteriorated further this week with the closure of its international routes.
From 120 to 14 aircraft for Jet Airways
The last international routes that the airline had managed to maintain have been suspended for lack of aircraft to operate them. With debts of up to $1.2 billion, the airline is seeing its planes seized little by little by its creditors and would have only 14 planes left against 120 at its peak. It also owes $500M to its customers as compensation for cancelled flights.
The Indian consortium in charge of finding a future for the airline has decided to postpone the deadline for the submission of bids and we suspect that it is because the candidates are not jostling each other.
Etihad is said to be ready to increase its stake from 24% to 49%, but given the Abu Dhabi airline’s track record in terms of equity investments, one wonders if this is good news, especially since Etihad is not at its best either.
A partnership to save for Air France?
We reminded you on Monday that Jet Airways is a partner of Air France-KLM, which had high hopes for this cooperation, and that its poor health is undeniably a hindrance, if not a halt, to the group’s development in the region.
A visibly fruitful partnership,Anne Rigail expressed her satisfaction in an interview with Le Monde this week, going so far as to declare that “The joint venture with Jet Airways is working very well between Europe and India. The partnership is so positive that we will do everything to support it [ The Indian Airline] »
It is this “everything” that leaves us pensive. It is understandable that the death of Jet Airways would be a blow to Air France-KLM’s strategy in the region, but it is hard to imagine a capital operation that would not simply postpone the fatal outcome.
We remain doubtful in front of this declaration and we wait for the continuation.
Photo : Jet Airways by Fasttailwind via Shutterstock
