Letter to BS: Jet Airways poses a threat to the Indian aviation sector

The banks should be very careful in assessing the financials of the airline and figure out if it would be able to recover its money or the promoter family needs to be removed from the management

This refers to the editorial “Exit the cockpit” (January 16). The continuing financial problems of Jet Airways are posing a threat to the Indian aviation sector. The airline’s inability to pay salaries to its pilots and other staff for some months is worrisome. Normally, in the time of financial crisis the first cuts in expenditure appear in the safety area. This is dangerous and is compounded by an unpaid and disgruntled workforce — pilots, engineers, cabin crew etc. The Directorate General of Civil Aviation should seriously examine the continuing adherence to safety procedures by Jet Airways.

The banks, especially the State Bank of India, should be very careful in assessing the financials of the airline and figure out if it would be able to recover its money or the promoter family needs to be removed from the management. The government and the public sector banks (PSBs) are already sinking a lot of tax payer and depositor money in propping up Air India and can’t do that for Jet as well. IDBI Bank and other PSBs lost a lot of money on Kingfisher Airlines. The need for fresh financing should be carefully assessed. It shouldn’t be a case of fools rushing in where angels fear to tread.

Arun Pasricha  New Delhi

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