Ahead of the proposed sale of the loss-making Air India, an anxious ministry of civil aviation has called for an impact analysis of the closure of Jet Airways. Ernst & Young (EY), the advisors to the sale, which flopped the first time, has been tasked with assessing the chances of a success in the light of shutdown of Jet Airways.
The very poor appetite for Jet Airways surprised the government given the carrier was financially in a far better shape than Air India is today. Jet’s dues at close to `25,000 crore are smaller than Air India’s staggering `58,351 crore. Moreover, it enjoyed the biggest share of international traffic out of India of 13.5% and commanded a local share of 15%.
