Monday, November 21, 2011

Jet Airways needs to raise funds

Mumbai: The auditors of India's biggest carrier Jet Airways have warned the company required to raise funds or generate cash flows in the future to meets its obligations, including financial support to its subsidiary JetLite.

Deloitte Haskins & Sells and Chaturvedi & Shah said in a report dated November 11 that raising money is crucial if Jet's accounts have to be prepared on a "going concern basis" in the future, the company the Bombay Stock Exchange.

Earlier this month, Jet swung to a net loss, compared with a profit a year ago, hurt by rising fuel prices and a forex loss in the quarter.

In September, auditors of smaller rival Kingfisher Airlines (KING.NS) had warned that the airline needed to infuse funds to continue as a "going concern".

India's airline sector is struggling under rising fuel costs and a heavy debt burden, making it tough for them to raise funds and forcing cancellation of aircraft orders.

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