DGCA monitoring cash-strapped Jet Airways' financial health, safety issues on fortnightly basis

Aviation regulator DGCA is assessing the 'health' of cash-crunched Jet Airways on a fortnightly basis following a financial audit of the carrier in August this year

Press Trust of India December 20, 2018 07:26:29 IST
DGCA monitoring cash-strapped Jet Airways' financial health, safety issues on fortnightly basis

New Delhi: Aviation regulator DGCA is assessing the "health" of cash-crunched Jet Airways on a fortnightly basis following a financial audit of the carrier in August this year, a senior official said Wednesday.

As part of this exercise, which is carried out under a particular provision of a civil aviation requirement (CAR), various aspects of the airline's functioning, including aircraft maintenance, are being looked at from the safety point of view, the official said.

"The health of Jet Airways is being monitored every 15 days. This is being done as per a CAR and the exercise started four to five months ago," a senior Directorate General of Civil Aviation (DGCA) official said.

The NRI Naresh Goyal-promoted private carrier is grappling with significant financial distress in the face of three back-to-back quarterly losses, which have resulted in cash drought and subsequently default on payments to aircraft lessors and a section of staff, among others.

"During the monitoring, various aspects from the view point of safety are looked at. This includes assessing whether the airline is able to maintain its aircraft and schedule," official added.

The UAE national carrier Etihad Airways holds 24 per cent stake in Jet Airways, which it acquired in 2013.

DGCA monitoring cashstrapped Jet Airways financial health safety issues on fortnightly basis

Representational image. Reuters

Notably, in late August the DGCA had carried out a financial audit of Jet Airways to assess its fiscal health and ensure that the carrier was not compromising on safety due to financial stress.

With a net debt of Rs 8,052 crore as on 30 September, and losses in excess of over Rs 1,000 crore each in the last three quarters, airline is working on ways to raise funds and reduce costs.

Last month, Jet Airways Chief Executive Officer Vinay Dube had said the airline was in active discussions with various investors to secure sustainable financing. As part of this, besides its on-going negotiations with Etihad, the airline also had "preliminary" level discussions with the Tata group in the recent past.

At the same time, SBI, the largest lender to Jet Airways, has ordered for a "forensic" audit of Jet Airways books between April 2014 and March 2018 for alleged financial irregularities. The forensic audit is being carried out by EY.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Ahead of last month's Karachi plane crash, pilots chatted about coronavirus and ignored safety alerts, says aviation minister
World

Ahead of last month's Karachi plane crash, pilots chatted about coronavirus and ignored safety alerts, says aviation minister

The pilots of a Pakistani airliner that crashed last month in Karachi were busy talking about the coronavirus and repeatedly ignored directions from air traffic controllers before their plane went down, killing 98 people, Pakistan’s aviation minister said Wednesday

Coronavirus Updates: Confirmed cases in Maharashtra cross two lakh with 7,074 new infections reported today; toll reaches 8,671
India

Coronavirus Updates: Confirmed cases in Maharashtra cross two lakh with 7,074 new infections reported today; toll reaches 8,671

Coronavirus Updates: According to a state health department bulletin, over 1.98 lakh patients have been discharged till date and the recovery rate stands at 54.02 percent

Coronavirus Outbreak Updates: Mumbai sees 1,460 new cases, 41 deaths today; Delhi tally reaches 80,188
India

Coronavirus Outbreak Updates: Mumbai sees 1,460 new cases, 41 deaths today; Delhi tally reaches 80,188

Coronavirus Updates: With 1,460 new cases, Mumbai's COVID-19 tally rose to 73,747 on Saturday while deaths from the virus increased to 4,282 with 41 patients succumbing to the virus today