Beleaguered carrier Jet Airways Thursday said that it has received around Rs 258 crore from Jet Privilege, its customer loyalty programme, for advance ticket sale.
Beleaguered carrier Jet Airways Thursday said that it has received around Rs 258 crore from Jet Privilege, its customer loyalty programme, for advance ticket sale.
The fresh funding comes as a lifeline to the Naresh Goyal-promoted full service carrier, which has been in financial turbulence amid losses, caused by high jet fuel prices, rupee depreciation and inability to raise fares due to cut-throat competition. The cash crunch has forced the airline to delay salaries to its employees, while the management had taken a major cuts in their remunerations.
Jet Privilege, which has got millions of members, is majority owned (50.1 per cent rpt 50.1 per cent) by its equity partner Etihad Airways, which also owns 24 per cent in the carrier. The rest of the equity is held by the airline.
"Jet Privilege concluded a prepaid ticket purchase agreement for $35 million with Jet Airways, under normal course of business," an airline spokesperson told PTI.
The customer loyalty programme regularly purchases these tickets to offer its members against redemption of miles hence this transaction is no different and is done under normal course of business between Jet Airways and Jet Privilege, the spokesperson added.
The Jet counter rallied over 11 per cent to Rs 197.10, still more than 60 below its 52-week high, on the BSE whose benchmark Sensex tanked 800 points.
Salary Defaults
After delaying salary to its pilots and engineers along with senior management, Jet Airways has now defaulted on the payment of September salary to other categories of employees as well.
The Naresh Goyal-controlled airline is struggling to mop up funds to meet its payment obligations, including salaries to its over 16,000-strong workforce.
Earlier last month Jet Airways aviation regulator DGCA has begun inspection of the training programme of the beleaguered Jet Airways, a senior regulatory official has said.
As per the Directorate General of Civil Aviation (DGCA) guidelines, all air operators are required to develop a training programme for their crew and dispatchers. It's also the responsibility of the operator to ensure that its training programme is complete, current, and in compliance with the DGCA guidelines.
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