After pay cut fiasco, Jet Airways VP says 'we are pretty optimistic about the future'

Even as the airline is facing difficult situation, Jet Airways' Vice Preseident, sales, Gilbert George, sounded very optimistic while speaking to Zee Business. When asked about financial pressure on the company, he blamed it on fuel price rise and falling Indian rupee exchange rate vs dollar.

Jet Airways needs to repay about $436 million of loans and bonds over the next three years with a third of it due by the end of next year. Image source: Zee Business

Jet Airways' woes worsened today, when chairman of State Bank of India, one of its lenders, said that its loan features on the bank`s watch list and special mention accounts, without giving details. While banks keep a close eye on 'watch list loans' for potential trouble, 'special mention accounts' include borrowers whose loan servicing has been delayed, a Reuters report said.

Jet Airways needs to repay about $436 million of loans and bonds over the next three years with a third of it due by the end of next year.

Even as the airline is facing difficult situation, Jet Airways' Vice Preseident, sales, Gilbert George, sounded very optimistic while speaking to Zee Business. When asked about financial pressure on the company, he blamed it on fuel price rise and falling Indian rupee exchange rate vs dollar. George said that the airliner has put the structure in place to mitigate the situation. He added, "We have broken the cost into fuel and non-fuel prices". He also said that results take time to show and that the "journey doesn't happen overnight".

"As far as future is concerned, we are pretty optimistic," he added.

Asked about salaries and lurking fear over job cuts, he clarified that "Nothing to worry about...we are in fact expanding, growing." Rather, he said that they will be creating more job opportunities as the company grows.

Meanwhile, market regulator Sebi is looking into Jet Airways' deferring the announcement of June quarter results following reservations expressed by the airline's audit committee. Citing sources, PTI report said that stock exchanges have also sought information from the company in this regard.

Earlier on August 9, the board of directors of Jet Airways had deferred the matter of consideration of the unaudited financial results for the June quarter.

SEBI is reportedly concerned about any possible lapses in terms of disclosure and corporate governance norms by Jet Airways. Sebi is also in touch with the stock exchanges on the Jet Airways matter.

In a BSE filing last night, the airline said its board has decided not to review the unaudited financial performance for the June quarter, adding "The audit committee did not recommend financial results to the board for its approval, pending closure of certain matters."

Referring to a media report about the airline's Audit Committee Chairman resigning from the panel as well as the board, both the BSE and the NSE have sought clarification.

According to another regulatory filing, shareholders of Jet Airways have reportedly approved the appointment of former Civil Aviation Secretaries Ashok Chawla and Nasim Zaidi as an Independent Director and Director, respectively. Besides, they have given their nod for appointment of Harsh Mohan and Kevin Nolan Knight as Directors, and Sharad Sharma as an Independent Director.

During the annual general meeting on August 9, the shareholders had also cleared the re-appointment of Anita Goyal as a Director.

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Meanwhile, shares of Jet Airways today plunged 14 per cent and touched its 52-week low in morning trade after the company deferred announcing the June quarter numbers.

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