EAT AS MUCH AS YOU CAN EAT: MORE DAMAGE THAN DEBT !





EAT AS MUCH AS YOU CAN EAT: MORE DAMAGE THAN DEBT !
EAT AS MUCH AS YOU CAN EAT: MORE DAMAGE THAN DEBT !


When you know that you have a lot of debt, you will have trouble in repayment of that loan.

Leverage is a term that is used by businesses to describe a very general business and finance strategy. One can take advantage of a business loan to build financial assets.

 Financial leverage is defined as the benefit of various loan intentions to boost the return of business on investment.

Jet Airways also has a new piece of damage from more debt.

This is one of India's top three airlines in the past decade. Jet Airways was founded by Agent-based entrepreneur Naresh Goyal after the end of monopoly of a state on Aviation in the early 1990s.

 It is 24 percent owned by Abu Dhabi's Etihad Airways PJSC and controls 13.9 percent of India's market, which is fastest growing in the world. Jet Airways also used to fly for international destinations, including London and Singapore.

In the mid-2000s, the flood of budget carriers started flooding the market, without any frills, still to stay at that time, Jet Airways started decreasing rent but lacked facilities .

 its peak, 30 percent of the provincial taxes on jet fuel were added to their expenses, while the price-conscious Indian passengers refused to pay premium for on-board food and entertainment. Unlike budget operators, full-service airlines such as Jet Airways provide such facilities for free.

Now the expenses of these facilities were not coming from and when Jet Airways did not raise the price then the debt burden began to increase. Jet Airways lost two years out of the last 11 years and lost nearly 72.99 billion ($ 1 billion) in debt every year.

From December 31, 2018, it started defaulting from paying on those loans and in January 2019, it started delaying payments to employees and the lessee.

When a loan increases, it happens: The first loss starts because the company has to pay more than the profits to repay the loan; Then he fails to repay the debt even if he does not start reducing that burden on time, and in the end, failure completely falls into the gap.


At this time, it is estimated that banks can get around 20% of their debt and operational creditors will not get anything.

This dilemma was always because Jet did not have any real property so he could not go out of NCLT and NCLT; It was always a matter of overnight disappearing property. SBI decided to negotiate an agreement with Goyal and make the right decision to fly Jet but it could not be fully successful.

 Now it looks like the beginning of the end for the jet. Therefore, it is a learning curve to make the right decision.

thanks for the time .

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