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  • Jet Airways : Naresh Goyal Incorporated The Business $1 Billion Revenue Jet Konnect Naresh Goyal Stepped Down

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    Jyothish Jb
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    Jet Airways was once India's largest private airline but faced severe financial problems leading to its collapse in 2019. Some key points: - Founded in 1993 by Naresh Goyal and grew to be the largest private airline but Goyal stepped down in 2019 as debts mounted. - By 2018 it had debts of over $2 billion and reported huge losses that year. Financial creditors were owed over $1 billion. - The airline aimed to revive itself with plans to raise new funds, cut expenses significantly, pay back lenders over time, and refocus its network and fleet while maximizing existing assets. - However, its financial position was too weak and it eventually was forced to ground

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    Team 2 Jet Airways

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    Jet Airways was once India's largest private airline but faced severe financial problems leading to its collapse in 2019. Some key points: - Founded in 1993 by Naresh Goyal and grew to be the largest private airline but Goyal stepped down in 2019 as debts mounted. - By 2018 it had debts of over $2 billion and reported huge losses that year. Financial creditors were owed over $1 billion. - The airline aimed to revive itself with plans to raise new funds, cut expenses significantly, pay back lenders over time, and refocus its network and fleet while maximizing existing assets. - However, its financial position was too weak and it eventually was forced to ground

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    18 views6 pages

    Jet Airways : Naresh Goyal Incorporated The Business $1 Billion Revenue Jet Konnect Naresh Goyal Stepped Down

    Uploaded by

    Jyothish Jb
    Jet Airways was once India's largest private airline but faced severe financial problems leading to its collapse in 2019. Some key points: - Founded in 1993 by Naresh Goyal and grew to be the largest private airline but Goyal stepped down in 2019 as debts mounted. - By 2018 it had debts of over $2 billion and reported huge losses that year. Financial creditors were owed over $1 billion. - The airline aimed to revive itself with plans to raise new funds, cut expenses significantly, pay back lenders over time, and refocus its network and fleet while maximizing existing assets. - However, its financial position was too weak and it eventually was forced to ground

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 6

    Jet Airways…

    Naresh Goyal Naresh Goyal stepped


    incorporated the business $1 billion revenue Jet Konnect down

    2002 2007 2018

    1993 2005 2012 2019

    Largest Airline Industry Acquisition of Sahara (Jet Huge net loss recorded
    Lite)
    Financials

    The airline had admitted


    debts worth Rs 15,525
    crore, of which admitted
    claims of financial creditors
    stood at Rs 7,460 crore.
    • Current Ratio: The company's current ratio improved
    and stood at 0.5x during FY18, from 0.5x during FY17.  
    • Return on Equity: The ROE for the company improved
    and stood at 8.9% during FY18, from -23.0%
    during FY18.
    • Jet Airways cash flow from operating activities  during
    FY18 stood at Rs 17 billion, an improvement of 69.1%
    on a YoY basis.
    • Long-term debt down at Rs 51 billion as compared to
    Rs 70 billion during FY17, a fall of 27.0%.
    • Sales to asset ratio stands at 1.9 when compared with
    Indigo 1.1.
    • Long-term debt down at Rs 51 billion as compared to
    Rs 70 billion during FY17, a fall of 27.0%.
    • Jet's revenues from operations increased  despite forex
    loss non fuel costs were constant.
    • RASK (Revenue per available seat kilometer) has
    increased by 2.6% . This is remarkable achievement
    because they did it by reducing their number of routes .
    Comparison
    among peers
    Financial planning

    Investment plan Expense cutoff


    Rs 1000 crore plan 20% reduction in employee benefit expenses.
    Rs 400 crore in phases in the first two years Selling and administration expenses
    Rs 600 crore in next three to five years. reduces by 15%
    10 % equity to creditors 10 % decrease in other expenses.
    Rs. 250 crore as collateral security to creditors
    Paying back lenders from third year
    Strategies

    Redesigning and
    Using 5 737Max in first
    Clear defined vision revamping
    stage of revival
    the lucrative network

    Taking the advantage


    Maximizing existing Bringing down
    of RASK and edging of
    resources Controllable Cost
    CASK

    Focus
    Reclaiming lost assets on domestic routes for
    short term.

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