Pinkerton Insights Podcast

Last week in India, hundreds of Jet Airways’ employees protested in Mumbai and New Delhi, after the airline declared the suspension of all operations. The airline announced the grounding of all its fleet after they failed to obtain emergency funds from the banks of India. Protesters demanded the government issue a bailout to avoid the cessation of operations. Several employees accused the airline of not issuing pay for months. The company stated that the suspension is likely to be temporary. At least 20,000 employees are at risk. The airline daily operated around 600 flights. However, all of them were canceled. The company owes large sums to its suppliers, oil companies, pilots, and lessors. We find it unlikely that Jet Airways will resume operations in the short term as the company undergoes an economic crisis that is unlikely to resolve. We assess the demonstrations are likely to increase and spread in more Indian cities due to the uncertainty and lack of clear response from the company. Also, it is