Go First is not the first airline to fly into turbulent times in India

<ul><li>A recent forensic audit on <keyword id="6358200" type="COMPANY" weightage="20" keywordseo="jet-airways">Jet Airways</keyword> by the SBI reveals funds misappropriation and fraudulent bills. </li><li>The report revealed that over a period of four years, a provision of ₹ 3,353 crore was made for a loan Jet Lite. </li><li>The <keyword id="6376435" type="UNKNOWN" weightage="20" keywordseo="ministry-of-corporate-affairs">Ministry of Corporate Affairs</keyword> (MCA) had ordered an investigation into Jet Airways for financial irregularities under the Companies Act. </li></ul>A fresh set of troubles have hit the bankrupt Jet Airways. Recent audits by the <keyword id="6354731" type="DOMAIN" weightage="20" keywordseo="state-bank-of-india">State Bank of India</keyword> (SBI) show that it has misappropriated funds relating to provision of loans, and raised fraudulent bills, <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/jet-airways-audit-shows-diversion-of-funds-fraudulent-billing/articleshow/70220878.cms?from=mdr">as per an ET report</a>. The audit reveals that it did not verify invoices, which led to inflation of bills and fuel expenses for Jet Airways, though they remained static for other airlines. “Provisions have been made for a ₹3,353 crore loan given to <keyword id="47941" type="COMPANY" weightage="20" keywordseo="JetLite">JetLite</keyword> over four years. Board resolution, shareholder approval for making this provision was not made available to the auditors,” the <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/jet-airways-audit-shows-diversion-of-funds-fraudulent-billing/articleshow/70220878.cms?from=mdr">forensic audit says</a>. A provision is when a company or a bank makes up for a loan which has gone bad or become unrecoverable, by putting extra funds into the kitty. These loans were also given out to Jet Lite in spite of the fact parent Jet Airways was making losses. The airline was grounded in April this year, after it accumulated as much as ₹8,500 crore in loans. It later turned bankrupt as no buyer came by, leading it to bankruptcy. The Ministry of Corporate Affairs (MCA) had ordered an investigation into the debt-laden airline for possible siphoning of funds and financial irregularities. Related parties As per the report, Jet has been mismanaging funds, in addition to siphoning them and conducting transactions with related parties. Also, Jet Airways has raised monthly invoices of ₹15 crore for commercial activities. There is no documentation available for this. It had also billed as much as ₹140 crore fraudulently to company called JP Mills, an act which left it with a loss of ₹46 crore. “There have been a systematic effort to siphon money from the company. In the limited analysis conducted it is clear that multiple methods were used to take out funds from Jet Airways,” sources told ET. SEE ALSO: <a href="https://www.businessinsider.in/the-tata-group-has-two-airlines-and-two-more-to-choose-fromair-india-and-jet-airways/articleshow/70129384.cms">The Tata Group has two airlines and two more to choose from—Air India and Jet Airways</a> <a href="https://www.businessinsider.in/tata-group-may-bid-for-jet-airways-assets/articleshow/70022109.cms">The ₹10 trillion Tata Group may want some of Jet Airways’ parts after the airline’s employees decided to bid</a>

Jet Airways raised fraud bills, faked invoices and siphoned off funds, says report

<img class="gwt-Image" src="/photo/51587690.cms" style="width: 800px; height: 600px;" /> 

	<a href="http://www.businessinsider.in/Jet-Airways-and-Etihad-emerge-as-the-fastest-growing-airlines-in-India-after-tie-up/articleshow/50973370.cms">Jet Airways</a> might soon merge with <keyword id="47941" type="COMPANY" weightage="100" keywordseo="JetLite">JetLite</keyword> and it might be sooner than you think with the company's intentions to fast track talks with shareholders. <keyword id="6358200" type="CITY" weightage="100" keywordseo="Jet-Airways">Jet Airways</keyword>’ board had approved the merger of the low-cost subsidiary JetLite with the airline in September. 

	According to a regulatory filing on Monday, <a href="http://www.businessinsider.in/After-an-impressive-Q3-Jet-Airways-plans-higher-fleet-usage/articleshow/50928690.cms">Jet Airways</a> said it will seek the nod of “equity shareholders, secured creditors and unsecured creditors” for the proposed merger on April 22.
 

	The meet is being convened following an order from Bombay High Court on March 18 asking the <a href="http://www.businessinsider.in/Weaker-international-sales-drive-Boeing-and-Airbus-to-Indias-growing-aviation-market/articleshow/51454442.cms">airline</a> to convene a meeting of equity shareholders on April 22 to consider the proposed merger.
 

	In this regard, Jet Airways had sought directions from the high court.
 

	According to Jet Airways, the merger would lead to greater efficiency in cash management of the merged entity and “unfettered access to cash flow generated by the combined business which can be deployed more efficiently to maximise shareholder value”.
 

	“Jet Airways has made demonstrable progress in the implementation of its three-year turnaround strategy with the objective of returning to profitability.
 “The merger of JetLite into Jet Airways is a key step to strengthen Jet Airways’ operations and create a seamless organisation, delivering exceptional service to its guests,” Jet Airways Chairman <keyword id="122732" type="PERSON" weightage="100" keywordseo="Naresh-Goyal">Naresh Goyal</keyword> had said in September last. 

	Jet Airways had bought Sahara Airlines in April 2007, for Rs. 1,450 crore after an arbitration award. It later renamed Sahara Airlines as JetLite and operated it as a low-cost arm till November.
 

	Currently, Jet Airways and JetLite operate under two different Air Operator Permit (AOP).
 

	Shares of Jet Airways fell nearly 2 per cent to close at Rs. 544.10 on BSE. 
	 
	(Image credits: indiatimes)

Jet Airways may soon merge with JetLite

<img class="gwt-Image" src="/photo/41699498.cms" /> 
 <keyword id="122732" type="PERSON" weightage="80" keywordseo="Naresh-Goyal">Naresh Goyal</keyword>'s <keyword id="6358200" type="CITY" weightage="100" keywordseo="Jet-Airways">Jet Airways</keyword> plans to merge its Low Cost Carrier (<keyword id="125271" type="COMPANY" weightage="40" keywordseo="LCC">LCC</keyword>) <keyword id="47941" type="COMPANY" weightage="40" keywordseo="JetLite">Jetlite</keyword> with its flagship carrier. According to company sources, the management will soon induct pilots from Jetlite to the parent company Jet Airways. 
 
"Nearly 230 pilots will be shifted from Jetlite to Jet Airways. This is a point of concern for us because it may lead to drastic changes in our salary structures as well as our seniority," said a senior pilot who requested anonymity. 
 
He further revealed, "Cramer Ball, CEO of Jet Airways, will be meeting with the company pilots on 9 September to discuss the future plans of the airline with us. Basically, they want to explain their decision to ensure a smoother transition". 
 Other sources told BI India that the management took the decision to transfer pilots from its LCC to Full Cost Carrier (<keyword id="160638" type="ORGANIZATION" weightage="60" keywordseo="FCC">FCC</keyword>) because they want to operate as a single brand. "The management didn't want any confusion regarding their brand. They just want to be known as Jet Airways and not differentiated as FCC and LCC," disclosed a senior official. 
 
Apart from the single-brand agenda, the management wants to aggressively expand its international network. Reports also suggest that airline will focus on deploying higher number of aircrafts on routes to Abu Dhabi, Etihad's base station, to boost profitability. 
 
"Despite the domestic side contributing about 40% to the total business, Jet lost a whopping 15.6% on its domestic operations wiping out any profits made by its bigger and more lucrative international division", said aviation analyst Devesh Agarwal. 
 
Commenting on the issue, Jet Airways spokesperson said, “The Jet Lite Air Operators Permit (AOP) will continue. We currently have excess pilot numbers in Jet Lite and we will be discussing with the Pilots, the options of working with Jet Airways. 
The airline has also announced its plans to reconfigure its fleet, in order to increase the efficiency of its operations. 
 
Interestingly, national carrier Air India, which too merged its domestic wing, erstwhile Indian Airlines and its international airline Air India in 2007, has been facing several HR issues pertaining to the salaries of the pilots. 
 
However, with Naresh Goyal at the helm of affairs in his airline, what remains to be seen is whether Jet Airways will manage a smooth transition or will it face more troubles down the road?

Jet’s Single Brand Agenda Gives Sleepless Nights To Pilots

<img class="gwt-Image" src="/photo/44823521.cms" />Loss-making <keyword id="6358200" type="CITY" weightage="20" keywordseo="Jet-Airways">Jet Airways</keyword> is facing shortage of <keyword id="47674" type="UNKNOWN" weightage="20" keywordseo="Pilots">pilots</keyword> after the <keyword id="6354705" type="UNKNOWN" weightage="20" keywordseo="Directorate-General-of-Civil-Aviation">Directorate General of Civil Aviation</keyword> (<keyword id="6354787" type="ORGANIZATION" weightage="20" keywordseo="DGCA">DGCA</keyword>) grounded more than hundred of its pilots since they didn’t meet the license requirement. This shortage had resulted into a delay in more than 150 flights on Sunday and Monday.

	The DGCA recently issued show cause notices to 131 pilots at Jet for lapsed proficiency check certificates. These are issued after pilots undergo two test flights on simulators every year.<o:p></o:p>

	It is important to note, this isn't the only instance of incomplete documentation. Recently, Jet Airways discovered that three of its pilots were flying without valid annual line check certificates. For those who are wondering what line check certification is? It’s a process wherein a trainer monitors pilot's flying skills by sitting in the cockpit through a flight. The main reason behind this is to ensure that all defined norms are followed in letter and spirit.<o:p></o:p>

	Notably, the Jet management had offered the JetLite pilots an option to join the parent brand. However, the airline clarified that these pilots would be put at the bottom of the seniority pile and may be moved to any location in the country. Most JetLite pilots are unhappy with the management’s offer and have rejected this deal. Reports suggest that these pilots have also formed a union and plan to file a case against the airline. <o:p></o:p>

	If we believe the reports, JetLite pilots have written an email to the Jet CEO <keyword id="2259341" type="UNKNOWN" weightage="20" keywordseo="Cramer-Ball">Cramer Ball</keyword> earlier this week stating our plans to protest. The report further reveals that by the end of the week, the pilots will fly with black badges and start a ‘work-to-rule’ system. If this system gets implemented, Jet pilots will strictly follow DGCA rules and will not fly in case the aircraft gets delayed on any count. 
	(Image: Wikipedia)

Jet Airways Faces Tough Time After DGCA Grounds Its Pilots

<img class="gwt-Image" src="/photo/40579731.cms" /> Riding on a slew of discount offers, low-cost carrier <keyword id="6358032" type="CITY" weightage="100" keywordseo="SpiceJet">SpiceJet</keyword> surpassed <keyword id="6358200" type="CITY" weightage="100" keywordseo="Jet-Airways">Jet Airways</keyword> to become the second-largest domestic airline in July. Its market share in the month stood at 20.9% as compared to the Jet Airways-JetLite combine's 19.6%. 
 The market share of <keyword id="6354706" type="CITY" weightage="100" keywordseo="Indigo">IndiGo</keyword> declined marginally to 30.7% in July from 31.6% in the previous month. The share of GoAir also saw a slight decline from 10.1% to 9.2%. IndiGo's passenger load factor, at 67% in July, dipped six percentage points from the same month last year. 
 
SpiceJet was the only Indian airline to report an increase in market share in July. The market share GoAir and IndiGo, which had reported a steady monthly increase in market share from January to June, also declined. Air India's market share fell from 18.5% in June to 18%. Air Asia, which operates only eight flights a day, commanded 0.5% of domestic traffic in the month.

SpiceJet Surpasses Jet To Become Number Two

<img class="gwt-Image" src="/photo/36713687.cms" /> <keyword id="2343555" type="UNKNOWN" weightage="100" keywordseo="Low-cost-carrier-AirAsia-India">Low-cost carrier AirAsia India</keyword> has announced flights between Bangalore and Kochi from next month with a limited offer of an all-inclusive fare of Rs 500. 
 The airline will start daily operations from Bangalore to Kochi and vice versa from July 20, according to a spokesperson. <keyword id="1583080" type="COMPANY" weightage="100" keywordseo="AirAsia-India">AirAsia India</keyword> launched its first flight between Bangalore and Goa on June 12. 
 Commenting on the development, AirAsia India CEO <keyword id="1674460" type="UNKNOWN" weightage="100" keywordseo="Mittu-Chandilya">Mittu Chandilya</keyword> said, "We have done a complete analysis of our third destination and we are confident that we will be able to reach out to more first-time fliers." 
 
Announcing Kochi as the third destination within a few days of the launch, Chandilya said, "We will stand by our promise to deliver a quality product to our guests that promises value for their money. We are very much encouraged by the outstanding reception to our product and service." 
 The airline will be operating twice-a-day flights on the <keyword id="2343556" type="UNKNOWN" weightage="100" keywordseo="Bangalore-Chennai-Bangalore">Bangalore-Chennai-Bangalore</keyword> route from June 19. It will also operate daily flights between Bangalore and Goa. 
 AirAsia India is a 49:30:21 joint venture involving Malaysian low-cost carrier <keyword id="2202187" type="COMPANY" weightage="100" keywordseo="AirAsia-Berhad">AirAsia Berhad</keyword>, <keyword id="46894" type="PERSON" weightage="100" keywordseo="Tata-Sons">Tata Sons</keyword> and <keyword id="230622" type="PERSON" weightage="100" keywordseo="Arun-Bhatia">Arun Bhatia</keyword>'s <keyword id="1838341" type="UNKNOWN" weightage="100" keywordseo="Telstra-Tradeplace">Telstra Tradeplace</keyword>. 
 
Earlier, Chandilya said the airline would offer fares about 35% lower than the prevailing market rates to connect tier II cities. 
 
Other low-cost carriers operating in India include IndiGo, SpiceJet and GoAir, besides Air India Express and JetLite.

You Searched For "JetLite" and got 7 results

Go First is not the first airline to fly into turbulent times in India

Katya Naidu

Jet Airways raised fraud bills, faked invoices and siphoned off funds, says report

BI India Bureau

Jet Airways may soon merge with JetLite

BI India Bureau

Jet’s Single Brand Agenda Gives Sleepless Nights To Pilots

Purba Das

Jet Airways Faces Tough Time After DGCA Grounds Its Pilots

BI India Bureau

SpiceJet Surpasses Jet To Become Number Two

BI India Bureau

AirAsia India To Fly Bangalore-Kochi For Rs 500

BI India Bureau

You Searched For "JetLite" and got 7 results

Go First is not the first airline to fly into turbulent times in India

Katya Naidu

Jet Airways raised fraud bills, faked invoices and siphoned off funds, says report

BI India Bureau

Jet Airways may soon merge with JetLite

BI India Bureau

Jet’s Single Brand Agenda Gives Sleepless Nights To Pilots

Purba Das

Jet Airways Faces Tough Time After DGCA Grounds Its Pilots

BI India Bureau

SpiceJet Surpasses Jet To Become Number Two

BI India Bureau

​AirAsia India To Fly Bangalore-Kochi For Rs 500

BI India Bureau

AirAsia India To Fly Bangalore-Kochi For Rs 500