Sucheta Dalal writes
Jet Airways, once India’s biggest airline, has been grounded, leaving the lives of nearly 20,000 employees and lakhs of customers in disarray. Employees haven’t been paid since December-January. Customers find their holidays in chaos; funds blocked in refunds; while they are forced to book again at steep rates, to salvage hotel bookings. All the while, the civil aviation ministry has fiddled. Well, it apparently held meetings and issued ineffectual advisories asking other airlines not to hike https://www.moneylife.in/article/jet-airways-bungling-employees-shareholders-customers-and-taxpayers-will-pay-the-price/56925.html
Wolf richter writes for his global audience in wolf street…
Today, another major airline collapsed. Jet Airways, India’s largest private airline, announced “with immediate effect” that it was “compelled to cancel all its international and domestic flights.” It suspended operations on a “temporary” basis. It said: “Since no emergency funding from the lenders or any other source is forthcoming, the airline will not be able to pay for fuel or other critical services to keep the operations going.”
Last year, Jet Airways “suddenly” discovered serious financial issues, which led to a highly dramatic rescue effort by the main creditors (chiefly state-owned State Bank of India and private-sector ICICI Bank) and minority shareholder Etihad under the new Sashakt legislation introduced by the Indian government to deal with the chronic “sudden liquidity problems” of the giant Indian economy.https://wolfstreet.com/2019/04/17/more-airlines-collapse-jet-airways-india-alitalia-wow/
My two cents
Crony capitalism keeps on taking its toll in India and the promoters are never at receiving end. Sector after sector competitive intensity is coming down as companies only cared about market share over profitability. The misallocation of capital had to come out somewhere and the people who will pay for it are the common people.