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Global airlines grouping IATA is “monitoring” the situation of the crisis-ridden Jet Airways but feels that the specific problems of an airline need to be solved by specific measures, its chief Alexandre de Juniac has said.
De Juniac during a media interaction on the sidelines of the just-concluded Global Aviation Summit, also said the airlines in Asia, particularly in India have balance sheet with heavy debt, which is a “problem“.
“We are following the situation with them (Jet Airways) very closely. We will try to see their problems because they participate in our billing and settlement plan system. So we are monitoring them as we do (of other airlines) everywhere,” de Juniac, who is the DG and chief executive of the International Air Transport Association (IATA) said.
Jet Airways, which has posted three consecutive quarterly losses of over Rs 1,000 crore each since March, has been grappling with financial woes amid liquidity crunch, which has resulted in default on loan repayment to banks besides delay in payments to aircraft lessors and other vendors as well as salary to staff.
Stating that IATA is following the situation of its members, especially of those who are apparently or publicly facing some financial difficulty, he said,”we are doing that everywhere. We are doing that for Jet Airways (as well).”
The airlines balance sheet has always been a concern for IATA the world over and recently only American and European carriers have significantly recovered balance sheet which is decently financed and has lower debt, he said.
“But in Asia, and particularly in India the balance sheet has heavy debt, which is a problem,” de Juniac said.
IATA has permanent exchange of information with its members participating in its BSP, he said adding,”So we keep an eye on those who could be in trouble.”
IATA also feels that the Indian ecosystem needs to support the sustainability of airlines in the country.
de Juniac, however, added that IATA does not interfere in the policy issues of an individual airline.
While Indian carriers are expected to post losses to the tune of over Rs 7,348 crore this fisal, according to IATA’s latest forecast, the global airlines’ industry is projected to report a net profit of USD 35.5 billion in 2019.
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