Airline woes in India a Serious Issue for One and all
It takes plenty of money to get trained as the commercial pilot, secure a job and get a license at a top airline. First, this course with fees of Rs 30 lakh, after that there is the fee to pay to airline and bond to sign. Burden will rise to over Rs 1.5 crore for the pilot to start flying for the big airline like the Jet Airways. This is major issues and lots of people are facing many problems due to this. Naresh goyal, has to get down from jet and that s causing he was casing some major hindrances. Company was facing some issues which were leading to loses.
Young pilots might earn over Rs 1 lakh monthly, senior officers over Rs 3 to 4 lakh and commanders over Rs 6 lakh that depends on experience. But they have not been getting the salary from a very long time. This is causing lots of discontent in the pilots and that is something which is putting a bad name for the company as well.
Jet Airways now has become the prime example of problems confronting in airline industry of India, as carrier launches the major thrift drive in an attempt to reverse the steep losses. Airlines in India are struggling with the same fuel costs, which are hurting this industry worldwide, and some other issues are increasing their plight. There are many issues which this organization is suffering from and not many solutions are seem in sight and that is something very dangerous.
With the worrisome loss that the Jet Airways have reported for its June quarter, there is a question in everyone’s mind, is Jet Airways going Kingfisher Airlines way?
Kingfisher was grounded on 2012 after its massive debt, weakening revenues and failing safety processes forced their engineers to down resources. They could not recover and had to shut down due to these issues and was not a good experience for the employees and the passenger and it stopped abruptly and that caused major issue. There are many problems with the management and that caused some serious trouble for the organization.
Jet also is in the financial trouble, but nowhere close to what Kingfisher faced some years before. Not yet, though.
Jet Airways reported a few enhanced operational performances in their June quarter despite certain losses: 9.4% increase in the available seat KM and capacity over Q1FY18, 7.6% increase in the revenue passenger KM, 4% increase in number of passengers of 7.38 million over previous quarter.
Thus, the aircraft aren’t flying empty, airline still is increasing its capacity and generated much better revenue. There are some major issues which one is facing and this is bad news for employees’ management and passengers of jet.
Jet reported loss of up to Rs 1,326 crore in its June quarter against the profit of up to Rs 58 crore in a year ago period. This was something very serious and one had to go thought some major problems.
It means, Jet Airways lost around Rs 14 crore daily of the quarter and around Rs 60 lakh each hour of a quarter. There were sufficient indications before that airline can fare badly so results aren’t surprising.
Jet Airways stock plunged to its lowest levels of 165 after company reported losses, many research analyst gave stock tips to sell Jet Airways and they advised to stay away from Aviation sector. Earlier many analyst gave negative views and stock tips on Indigo, Spicejet stocks. Investors should consult Investment Advisers before making any investment in Aviation sector, investment advisor will give its views and stock tips after doing research in Aviation sector.
Besides, peers Spice Jet and IndiGo, reported losses in its same quarter earlier, thus the quarter is bad all round and IndiGo reported 97% drop in its profitability. There is lots of competition and some are doing well, while other are struggling and that is a major problem with jet, things do not look too good as of now. Let us see in future what happens.