Auditors warn Jet Airways needs to raise funds
22 Nov 2011
Mumbai: The auditors of Jet Airways, India's biggest carrier by passengers carried, have said the company needs to raise funds in the future to meets its obligations, including financial support to its loss-making subsidiary JetLite. Jet commands nearly a quarter of the market share.
Auditors Deloitte Haskins & Sells and Chaturvedi & Shah said in a report dated 11 November that raising money is crucial if Jet's accounts have to be prepared on a "going concern basis" in the future.
The report was released to the stock exchange on Monday.
In September, BK Ramadhyani & Co, auditors of rival Kingfisher Airlines, had warned that Kingfisher's ability to remain a "going concern" will depend on its promoters bringing in money into the company.
Jet reported a net loss in the September quarter, compared with a profit a year ago, hurt by rising fuel prices and a forex loss in the quarter.
Industry experts feel that Jet was in a better position relative to Kingfisher in terms of financial strength. With a fleet mostly dedicated to international operations and adequate flight strength, the carrier, experts hold, has been able to protect its market share and should be able to meet its financial obligations.