NEW DELHI/MUMBAI: A proposed infusion of Rs 1,000 crore into Jet AirwaysNSE 3.43 %may prove to be “too little too late” to save the airline as it might require at least Rs 10,000 crore to stay afloat, industry observers said on Friday.
According to industry estimates, Jet’s total debt of Rs 8,000 crore in addition to payables such as vendors’ dues worth Rs 15,000 crore, would require something more substantial than just Rs 1,000 crore that a consortium of public sector banks might muster up.
“The airline alone has estimated advance ticket sales of Rs 1,500-2,000 crore. There are total payables and debt of Rs 25,000 crore. Anything short of Rs 10,000 crore might not have a dent on the current situation that the airline is going through,” said an industry source.
The airline has lost ground in terms of market shares, even as its pilots and crew are said to be approaching other airlines for employment.
“This (Rs 1,000 crore) amount is not enough even to clear salaries and refund passengers for cancelled tickets,” said another sectoral expert.
The industry reaction comes even as the airline’s case is being viewed by top government officials.
Sources say that prospects of 16,500 employees of the airline losing their jobs ahead of the general election might just push PSU banks to extend a lifeline till they find another investor.