New Delhi Board of the debt-ridden airline Jet Airways on Thursday approved a “Turnaround Plan” by its lenders to infuse capital in the company after it posted a net loss of Rs 587.80 crore in the third quarter ended on December 31, 2018 on higher aviation fuel cost and strong market competition.
The airline had posted a profit of Rs 165 crore in the same quarter last year. However, this was the fourth consecutive quarterly loss of the airline.
“These conditions together with four successive quarters of losses due to high fuel prices and fluctuating currency rates, coupled with tight liquidity conditions pose serious challenge to the Company indicating the existence of material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern,” the Jet Airways said in a filing to the Bombay Stock Exchange.
The Naresh Goyal-owned airline has also shared a “Turnaround Plan”. The company said Indian banks, led by State bank of India, have initiated a comprehensive Resolution Plan on the ‘Revised Framework for Resolution of Stressed Assets’ towards a turnaround of the company for its sustained growth and restoration of financial health.
The draft resolution plan would work on infusing funds, restructuring of debts and monetizing assets. It has also been approved by the Board of Directors on February 14, the company said.
The airline has incurred a loss of Rs 3,208 crore during the nine months ended December 31, 2018 and current liabilities exceed its current assets by Rs 9,610 crores, the company added.