United States-based aircraft manufacturer Boeing has said that it is concerned about private Indian carrier Jet Airways’ financial situation. Jet Airways is one of the main customers of Boeing.
The private carrier has placed an order for 219 Boeing 737 MAX aircraft and has taken delivery of five of them, PTI reported on Friday. The Jet Airways Group currently has 123 aircraft, including Boeing 777-300, 737 MAXs and 737s.
“We are concerned absolutely. We have just delivered five MAXs,” Boeing Senior Vice President (Sales and Marketing for Asia Pacific and India) Dinesh Keskar said on Friday. “But we will continue to work with them.” Keskar added that he is concerned about the financial sustainability of the airline and added that the fares seen in the domestic aviation sector in India over the past few months are a cause for worry.
“In this business, you can’t get too many new customers every day,” Keskar told The Indian Express. “We want to make sure airplanes are flying. If you have deep pockets, you can sustain longer. In our business there are people who have funds and there are people who are literally working through working capital on a day to day basis.”
Jet Airways has reported a loss of Rs 1,326 crore in the first quarter of 2018-’19. As a result, India’s oldest private airline has decided to incorporate further cost cutting measures, debt reduction and funding options as part of its turnaround plan. On August 2, Jet Airways said it had asked its employees to take a pay cut of up to 25%. The National Aviators Guild, which is the airline pilots’ union, had asked employees not to accept the management’s decision.
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