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RoC receives complaint against Jet Airways, seeks explanation from airline

Without providing specific details about the communication or the complaint, Jet Airways said it was taking necessary steps to provide the responses to the RoC

Press Trust of India  |  New Delhi 

Jet's unit costs increased 8.7 per cent while its unit revenue declined 3.9 per cent
Jet Airways board, on August 9, deferred announcement of unaudited financial results for the June quarter and the same was announced on August 27

Jet Airways, which is grappling with financial woes, on Thursday said the (RoC) has sought explanations from the following receipt of a complaint.

Without providing specific details about the communication or the complaint, the loss-making said it was taking necessary steps to provide the responses to the RoC, which comes under the corporate affairs ministry.

On August 27, the full-service carrier reported a net loss of Rs 13.23 billion for the three months ended June.

Earlier this week, a senior official said the ministry has sought details about certain issues from the airline, which is also under the regulatory scanner for postponement of its June quarter results.

To a query on whether the has received a communication from the regarding certain financial matters, an airline spokesperson replied in the affirmative.

"has received communication from the office of (RoC) seeking comments/ clarifications and explanations in response to a complaint received by their office.

"The company is taking necessary steps to submit its response in this regard," the spokesperson said.

Without elaborating, the spokesperson also said the airline is unable to comment on any other speculative media reports on the subject.

board, on August 9, deferred announcement of unaudited financial results for the June quarter and the same was announced on August 27.

Battling financial woes, the airline is working on ways to reduce costs.

On August 27, said it would monetise loyalty programme JetPrivilege and wet-lease some of its small aircraft to mobilise urgent working capital.

ALSO READ: Q1 results: Jet Airways faces headwinds, struggles to control the flight

Against the backdrop of second back-to-back quarterly loss, the airline has announced a turnaround plan, which includes a capital infusion by selling a stake in JetPrivilege, and a massive cost-cutting to save around Rs 20 billion over the next two years.

Cost cutting covers various areas of operations such as maintenance, sales and distribution costs, fuel bill, reducing debt to save on interest and enhancing manpower productivity with a special focus on the crew, the airline said on August 27.

Earlier today, the airline informed stock exchanges that it has not received any communication till date from the Income Tax department amid reports of the department probing a land deal.

Shares of the carrier declined nearly 2 per cent to close at Rs 286.75 on the BSE.

First Published: Thu, August 30 2018. 23:20 IST
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