Goldman Sachs has been appointed as investment banking advisor to help scout potential parties to infuse funds into the company
Beleaguered airline Jet Airways has appointed Goldman Sachs Group and Boston Consulting Group as advisers as it seeks to boost operational efficiency and raise funds, two sources told Mint.
The Naresh Goyal-led airline needs capital for its dollar-denominated payments, as rising fuel prices and a weak rupee have adversely impacted its financial health.
Goldman Sachs has been appointed as an investment banking advisor to help scout potential parties to infuse funds into the company.
BCG, on the other hand, will help in increasing operational efficiency, the sources quoted above told the paper. Goldman Sachs would also hunt for bidders for a Jet Airways stake sale.
Jet Airways is exploring many strategies to turn its financial situation around and such initiatives need inputs from external agencies and consultants, an airline spokesperson told the paper.
The spokesperson added that due announcements will be made at the appropriate time.
There have been reports of Jet Airways reaching out to various companies, for help, including Tata Group and Reliance Industries.
In September, the airline said it would raise Rs 3,500 crore in the next six months through a stake sale in its loyalty programme.
The airline had set up a turnaround plan for itself, including cutting costs by over Rs 2,000 crore, better pricing, inventory management, capital infusion and fleet simplification.
The value of the rupee and fuel prices have become a hurdle in Jet’s ambitious plan, and many analysts are sceptical of cost cutting through non-fuel costs in the next few quarters.
Jet Airways, amid tough competition from budget airlines like IndiGo, posted a standalone loss of Rs 1,323 crore for the June quarter.
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