Jet Airways financial woes: Registrar of Companies receives complaint against airline, seeks explanation

New Delhi: Jet Airways, which is grappling with financial woes, today said the Registrar of Companies (RoC) has sought explanations from the airline following receipt of a complaint. Without providing specific details about the communication or the complaint, the loss-making airline said it was taking necessary steps to provide the responses to the RoC, which comes under the corporate affairs ministry. On 27 August, the full-service carrier reported a net loss of Rs 1,323 crore for the three months ended June. Earlier this week, a senior official said the ministry has sought details about certain issues from the airline, which is also under the regulatory scanner for postponement of its June quarter results. To a query on whether the airline has received a communication from the RoC regarding certain financial matters, an airline spokesperson replied in the affirmative. “Jet Airways has received communication from the office of Registrar of Companies (RoC) seeking comments/ clarifications and explanations in response to a complaint received by their office. “The company is taking necessary steps to submit its response in this regard,” the spokesperson said. [caption id=“attachment_4883531” align=“alignleft” width=“380”]  Representational image. Reuters.[/caption] Without elaborating, the spokesperson also said the airline is unable to comment on any other speculative media reports on the subject. Jet Airways board, on 9 August deferred announcement of unaudited financial results for the June quarter and the same was announced on 27 August. Battling financial woes, the airline is working on ways to reduce costs. On 27 August, Jet Airways said it would monetise loyalty programme JetPrivilege and wet-lease some of its small aircraft to mobilise urgent working capital. Against the backdrop of second back-to-back quarterly loss, the airline has announced a turnaround plan, which includes a capital infusion by selling a stake in JetPrivilege, and a massive cost-cutting to save around Rs 2,000 crore over the next two years. Cost-cutting covers various areas of operations such as maintenance, sales and distribution costs, fuel bill, reducing debt to save on interest and enhancing manpower productivity with special focus on the crew, the airline said on August 27. Earlier on Thursday, the airline informed stock exchanges that it has not received any communication till date from the Income Tax Department amid reports of the department probing a land deal. Shares of the carrier declined nearly 2 percent to close at Rs 286.75 on the BSE.