 "Jet Airways, SpiceJet's book values eroding rapidly: HSBC")
While the proposal to allow 49 percent foreign direct investment in aviation bodes well for the future of the industry, the December-ending quarter results will still highlight some harsh realities.
Jet Airways, which is expected to announce its results on 20 January, is likely to post a loss of Rs 370 crore for the quarter at the group level, says HSBC Global Research in its latest report. Stubbornly high fuel prices, the sharp 11 percent rupee depreciation and lower load factors will see the airline experiencing another quarter of losses.
However, that is just the tip of the iceberg as the report points out that the substantial losses made by the airline in the past three quarters have been eating into its book value, which is expected to be largely eroded by the end of March 2012. (Simply put, book value is the company’s assets minus its liabilites. It helps one understand what will be left with the company after it settled all its outstanding obligations and sold off all of its assets).
[caption id=“attachment_186538” align=“alignleft” width=“380” caption=“SpiceJet is expected to post a Rs 49.8 crore loss for the December quarter.Flickr”]  [/caption]
Overall, Jet is expected to post a loss of Rs 1,700 crore in the current financial year ending March, the brokerage added.
Things aren’t looking any better for SpiceJet: the airline is expected to post a Rs 49.8 crore loss for the December quarter. While high fuel costs, weak load factors and a weakening rupee will affect SpiceJet, the big concern is its rising debt levels, which will lead to higher interest costs.
SpiceJet also does not have any asset support as most of its fleet is largely leased. In the case of this airline, too, continued losses are fast eroding its book value, the report added.
 "Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty")
 "Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched")
 "Who is CP Radhakrishnan, India's next vice-president?")
 "Israel informed US ahead of strikes on Hamas leaders in Doha, says White House")
 "Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty")
 "Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched")
 "Who is CP Radhakrishnan, India's next vice-president?")
 "Israel informed US ahead of strikes on Hamas leaders in Doha, says White House")
](https://images.firstpost.com/wp-content/uploads/2012/01/spicejet_flickr.jpg){kind=link}