In a temporary relief to the debt-laden Jet airways, domestic banks have disbursed a liquidity support of $ 300 million in the form of advance lease incentives and borrowings. The airline which had reported a loss in successive quarters also affirmed that both the airline and auditors are on the same lines on the finances.
Jet Airways deputy chief executive and chief financial officer Amit Agarwal informed that the company got a liquidity support of $ 300 million towards lease incentives and bank borrowings. He, however, did not reveal the breakup.
Recently, Jet Airways had announced a net loss of whopping Rs. 1,323 crore for the quarter ended in June due to higher crude oil price, depreciating rupee and competitive fares. However, the income marginally increased from Rs. 5,953 crore to Rs. 6,066 crore during the same period last year.
Notably, Jet Airways had registered a loss of Rs. 1,036 crore in the last quarter of the financial year 2017-18. The losses in two consecutive quarters forced the airline to chart out a revival plan to improve pricing, better inventory management, monetising its JetPrivilege programme and wet leasing some of its smaller aircraft.
The airlines' had scheduled its June quarter results on August 9 but post its annual general body meeting, it informed that board could not consider the accounts as the company's audit committee was headless.
Eventually, Vinay Dube, Chief executive officer clarified that there was no difference of opinion with the auditors and they continued to audit the company's accounts. He also clarified that Q1 2018 i.e June-quarter results were delayed to materialize the cost-reduction programme.
It is to be noted that the airline companies in India are facing tough times due to stiff pricing and rise in crude oil prices in the international market. The national carrier Air India is also facing the same cash-crunch problem due to the same issue.