If this isn’t the death of Jet Airways, it sure looks like it. The Indian airline has just announced that it is suspending its operations and it is difficult to see how it will survive.
Jet Airways has been in serious trouble for several weeks and the latest news was more than alarming.
No miracle buyer for Jet Airways
So neither Etihad, nor any miracle investor, nor Air France-KLM, which had announced that it would do everything to save the successful partnership with India’s largest private airline, took action. Note in the case of Air France-KLM that Anne Rigail had very wisely spoken of saving the partnership….not the airline.
This afternoon Air France-KLM stopped selling codeshare tickets with Jet Airways. Strange when you want to save a partnership, but when the partner in question is riddled with debt and operates only 14 aircraft out of a fleet of 120, you can consider that the Franco-Dutch group wanted above all to protect its customers if the worst should happen to Jet Airways.
Or maybe Air France “knew”. A few hours later, Jet Airways announced that it was temporarily suspending its operations as of this evening, and we can imagine that the Indian airline had previously informed its partners.
A temporary situation that may last
However, we don’t believe in the “temporary” character of the thing. What could help Jet Airways to resume its flights? Knowing that as long as it does not file for bankruptcy it will continue to lose money on a daily basis (or rather increase its debts), only a magical and somewhat unconscious buyer could give it the means to start again.
But when you owe $1.2 billion to your creditors, $500 million to your customers and that you are structurally loss-making, it is very difficult to attract potential investors who, moreover, have not shown the tip of their nose despite the calls of the consortium in charge of the rescue of the airline.
Barring a miracle, this is the end of the road for Jet Airways.
