Jet Airways rating downgraded at the defaulted company level
Concrete bankruptcy risk for the carrier
After yesterday the airline Jet Airways asked the creditor banks to postpone the payment of the debt installments due to the absence of liquidity in cash, the shares on the Stock Exchange fell and the Indian rating agencies downgraded the debt to "D", or what is given to companies in default or almost. The huge debt, the difficulties in paying salaries, the fees of leased aircraft and the cash problems only increase doubts about the financial stability of Jet Airways that risks having to declare bankruptcy in the short term, also because the rating downgrade it will make it even more complicated to attract investors or convince banks to lend more money. Added to this is the fact that Etihad has bound its possible investment to the exit of the scene, or at least to the minority, of the president and founder of the company Naresh Goyal, but this would not give way convinced of being able to go back up the slope to "his" airline.
With 26 lenders demanding the money back and with none of these being said willing to turn the loans into shares of Jet Airways, probably without the arrival of an outside investor the fate of the Indian company seems marked towards bankruptcy. It is also difficult to imagine that Etihad is once again venturing into an attempt to revive an airline on the brink of bankruptcy, with the risk of losing the money allocated as already happened for Alitalia and Air Berlin.
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