This may see the banks taking a large loss on their exposure to Jet Airways. Jet Airways on Wednesday said in a statement which announced the temporary suspension of flight operations that it will await the bid finalisation process by the State Bank of India and the consortium of domestic lenders. Market circles fear with more employees likely to leave Jet Airways after the temporary shutdown and the carrier losing landing slots, the valuation put in by the interested parties could suffer. The government has already provided some of the unused slots of Jet Airways to other airlines. Jet Airways should continue to face elevated losses as its PAX decline would overwhelm higher yields’’, a report from Edelweiss Securities said.
Source: The Telegraph April 17, 2019 19:18 UTC