[Aditya]

About “one-third” of the stalled Jet Airways 2.0’s 230 employees (about 70) will be sent on leave without pay or face salary cuts of upto 50% starting December 1, 2022.

The Directorate General of Civil Aviation had revalidated Jet's licence exactly six months back on May 20, 2022.

"Most of the affected get Rs 50-60,000 per month. A 50% pay cut means basically being asked to leave." said some employees.

On its part, airline management said: “Two-thirds of staff not impacted at all. Of the remaining one-third, most will be on temporary pay reduction. Only a small portion of the total (about 10%) will be on temporary LWP. No staff (is being) let go.”

During Covid — global aviation’s worst ever crisis - the stock of grounded Jet Airways was the world’s best performing airline stock. JKC now has another possible first to its credit - sending staffers on leave without pay and effecting pay cuts even before there is any sign of the airline taking to the skies again.

Source: Times of India

[V.Narayan]

I would not bet on Jet Airways 2.0 taking off anytime soon. To take off they need some political heft other than very deep pockets and a seriously competent leader at the helm. At this point they have none of the three. They need entrepreneurial leadership at the helm not corporate drones.

[no_fear]

Originally Posted by V.Narayan

...and a seriously competent leader at the helm. At this point they have none of the three.

The current CEO Sanijv Kapoor worked at Vistara, Spicejet and GMG airlines in and before with Northwest airlines in US. Why do you think he is not competent for the job?

[V.Narayan]

Originally Posted by no_fear

The current CEO Sanijv Kapoor worked at Vistara, Spicejet and GMG airlines in and before with Northwest airlines in US. Why do you think he is not competent for the job?

Thank you for this very fair question. I don't know if it is appropriate for me to have expressed my opinion in my post number 2 above. I have known the leadership at Jet 2.0 in my professional capacity over several years and don't believe they have what it takes to build an airline and to tackle the legal and financial challenges simultaneously . Similarly notwithstanding the early demise of its main funder, Akasa has a way better chance of becoming successful. Of course you may disagree and I respect that.

[Turbanator]

Unless someone has deep (very deep) pockets and some connections, buying somebody's loss-making business has more risks than setting up something from the ground up. This is from my limited experience and should hold well in most segments. As mentioned by VN Sir, one can turn up such things if you have someone or somebody.

Running a large company with a solid back is entirely different from setting up something like this with many legacy issues and claims.

But again, these times are different; we have seen many unicorns coming out of nowhere. These are against the old-age thoughts that people like me have to have a minimum/ nil debt company and invest/ expand from profits only. Except for the now almost forgotten "Jet" brand, they had nothing but liabilities from the older Jet.

[no_fear]

@V Narayan, Turbanator

I don't have skin in the game, just curious, since the media feted the appointment of Sanjiv Kapoor and aviation analysts proclaimed that Jet is in good hands. Clearly the current news shows all is not well.

I still don't understand the economic point of having Jet 2. I thought most of their assets, especially their international landing slots and their base in Brussels are long gone.

[MDED]

For an airline or any big corporate to run successfully, would require massive capital upfront and then, the ability to raise WC loans to take care of the day to day expenses and making enough operational revenue to service the interest on WC loans, staff salaries, taxes, etc.

As far as the present situation of Jet is concerned they would need a kid glove treatment from the GoI and the regulator DGCA till they evolve from the mess. The government is the main culprit along with greedy individuals (read main promoters). Despite the industry asking, pleading and begging for reduction of ATF, the government is hell bent on not doing anything, forget bringing the gasoline under GST regime. These are money minters for the governments.

India needs healthy airlines and with the changing trend of folks travelling in India, they don’t mind shelling 7-8000 rupees for one way air ticket and it would be nice to have many airlines in our skies. Spice Jet doesn’t look in good health and with the speed with which the airlines are appearing at the cusp of failure, it would do more harm to India than good!

[Theyota]

What is it that "Jet" has, that even after being dead for so many years, someone still wanted to pay (however little it is) to buy it and relaunch it? After so many years of not operating, does it still hold slots in important airports around the world? I never really understood it. I would imagine the brand itself has no value left after all the negative news over the years. There is also not much information about the consortium that is investing in it. Maybe someone like Mr. V. Narayan who has deep insight in this industry can throw some light on this.

[Hayek]

It’s utter stupidity that Jet Airways restructuring has taken 3.5 years (and counting) after the airline shut down. Tells us how despite the bankruptcy code, our systems for reviving or liquidating bankrupt enterprises are third rate. In 2019, Jet had slots, owned planes, staff, and goodwill amongst passengers. It just lacked equity. Today, it has no slots, no staff, and is a fading memory in passengers mind. Hesitate to comment on this given that experts like Mr Narayan have been posting here - but the owned planes parked next to the Mithi River in humid, polluted Bombay cannot be in the kind of condition they would have been in if parked in storage in the CA deserts. There is no value in “reviving” Jet now - time for the banks to accept whatever little Jalan Kalrock are willing to give them, and for our judges to learn basic economics - viz there is limited liability for companies, and money for workers or others cannot come out of thin air.

[V.Narayan]

Originally Posted by no_fear

I don't have skin in the game, just curious, since the media feted the appointment of Sanjiv Kapoor and aviation analysts proclaimed that Jet is in good hands. Clearly the current news shows all is not well.
I still don't understand the economic point of having Jet 2. I thought most of their assets, especially their international landing slots and their base in Brussels are long gone.

Originally Posted by Theyota

What is it that "Jet" has, that even after being dead for so many years, someone still wanted to pay (however little it is) to buy it and relaunch it? After so many years of not operating, does it still hold slots in important airports around the world? I never really understood it. I would imagine the brand itself has no value left after all the negative news over the years. There is also not much information about the consortium that is investing in it. Maybe someone like Mr. V. Narayan who has deep insight in this industry can throw some light on this.

I'm no expert on reviving an airline. My personal assessment is as follows:-

Jet Airways owes its creditors Rs 15,400 crores. Of this Rs 1254 crores is owed to its ex-employees. Its assets are its AOP license that permits it to fly and its landing rights at various Indian airports. The Govt has kept these rights alive in the hope that some entrepreneur will step in and use them to revive the airline and pay off the employees and other debtors. Other than these rights I doubt there are other assets but others can opine better as I have not studied the balance sheets. Why some one, in this case the Jalan-Kalrock consortium, would want to revive the airline is anyone’s guess except that the lure and glamour of flying, owning an airline has attracted big shots, often fatally, more than once in the last 100 years. Air India also had a similar volume of liabilities at the time of the sale to Tata’s but it was a fully operational airline, with aircraft, crew et al. It is the lot of PR agencies to hype the spin on the proposed revival, selection of CEO, formation of consortium etc in the direction the company wants. Too high on liabilities, too low on assets, zero crew or even an operating framework, and it’s trying to revive at a time of a looming economic global slowdown globally. I stand by my earlier assessment that this attempted revival is dead in the water. If you marry a great team to a lousy business model the latter will prevail.

Jet Airways, in my opinion, has joined a long list of airlines that has suffered a CFIT i.e. controlled flight into terrain.

In India only companies go bankrupt, never the promoter.

[shivraj737]

As an ex Jet airways employee and having waited for Jet to restart for 3 years, I have come to accept that Jet won't be flying again. It is very sad to see the aircrafts and equipment parked at Mumbai, Delhi and other airports.

I think if Jet had started flying by this year, they had a chance. Further they don't seem to have publicly declared what their plan is, not even the aircraft type they'll be coming with.

But still I hope I'm proven wrong.

[V.Narayan]

Originally Posted by Hayek

Hesitate to comment on this given that experts like Mr Narayan have been posting here - but the owned planes parked next to the Mithi River in humid, polluted Bombay cannot be in the kind of condition they would have been in if parked in storage in the CA deserts.

Very valid point. Mothballing an aircraft for future re-use is a disciplined procedure that requires constant inputs such as turning the turbines every 30 days, filling the tyres at periodic intervals and keeping the air tight seals in ship-shape etc. Rotating the turbines periodically to avoid microscopic bending of the shaft and to keep the bearings lubricated are a must do followed by re-sealing the engine. You really don't want a shaft that is bent even by 1/100th of a millimetre because it needs to run at 20,000 RPM. Unless you have an MRO that is doing all this in return for a fee the aircraft like a car will deteriorate. One big aim of mothballing is to prevent humidity from getting in - hence the dry Mojave desert is preferred - dry cold climate is best. Mumbai is wet and warm!! From what I have seen of Jet's machines at Indian airports it does not seem like someone is taking care of them.

[sameer_vwagner]

Originally Posted by shivraj737

As an ex Jet airways employee and having waited for Jet to restart for 3 years, I have come to accept that Jet won't be flying again. It is very sad to see the aircrafts and equipment parked at Mumbai, Delhi and other airports.

I think if Jet had started flying by this year, they had a chance. Further they don't seem to have publicly declared what their plan is, not even the aircraft type they'll be coming with.

But still I hope I'm proven wrong.

I'm so sorry mate! Jet had been my first choice when it dominated the Indian skies and have fond memories of the staff's courteousness at airport and inside aircrafts. People like yourself and your colleagues are the reason why many in India still want Jet Airways to start flying.

If you don't mind me asking, Jet has a hangar complex at BOM next to the Armed Forces Helicopter base. Is that owned or leased? That itself should be a major draw if its owned.

And lastly, Jet has a sinlge A320-NEO parked at Toulouse, which is awaiting re-registration. The current registraion no (under Avolon) is OE-IBQ and another 3 are on order. Last i heard, they were planning to have 2 class configuration on A320s for domestic. Fingers crossed they start the operations soon. I've taken this information from Planespotters. Posting the URL here for reference.

https://www.planespotters.net/airline/Jet-Airways

[aashishnb]

What goes around comes around....or Karma

Jet was the main reason for Tatas not being able to have an airline for decades, and now perhaps, it may end up the other way round.

[shivraj737]

Originally Posted by sameer_vwagner

I'm so sorry mate! Jet had been my first choice when it dominated the Indian skies and have fond memories of the staff's courteousness at airport and inside aircrafts. People like yourself and your colleagues are the reason why many in India still want Jet Airways to start flying.

If you don't mind me asking, Jet has a hangar complex at BOM next to the Armed Forces Helicopter base. Is that owned or leased? That itself should be a major draw if its owned.

And lastly, Jet has a sinlge A320-NEO parked at Toulouse, which is awaiting re-registration. The current registraion no (under Avolon) is OE-IBQ and another 3 are on order. Last i heard, they were planning to have 2 class configuration on A320s for domestic. Fingers crossed they start the operations soon. I've taken this information from Planespotters. Posting the URL here for reference.

https://www.planespotters.net/airline/Jet-Airways

Thank you, it was a good airline to work for as well.

I'm not sure about the hanger, I think it was owned but I don't recall if it was listed in the NCLT papers. I remember the office properties were, out of which some were sold off by banks long ago.

Yes, even I saw the A320 in Jet livery and felt quite hopeful, but other than that, there hasn't been any official statement. Without a large order and the discounts that come with it, it will be difficult to be cost effective. Further things seem to be at a stalemate with the banks. From what I hear on the grapevine, chances are banks might go for liquidation.

With the Indian aviation industry growing again post Covid, Jet will find it difficult to find pilots especially with lot of pilots moving to the middle eastern airlines. I'm not sure if anyone will trust Jet when there are better opportunities available.

I'm with Akasa now and I'm very happy to start flying again. Also, most of the people in Akasa are ex Jet so it's a familiar environment.