Daijiworld Media Network

New Delhi, Nov 22: Indian aviation sector is not in good health, or so it seems. After Kingfisher Airlines hit the headlines for the mammoth loss it was facing, it is now the turn of Jet Airways to be warned. The airline has been told by its auditors to raise funds to keep it afloat.

A report stated that auditors Deloitte Haskins & Sells and Chaturvedi & Shah have told Jet Airways that it must raise funds in order to prepare its accounts on a "going concern" basis in the future, which, in simple terms, means that the company has to generate funds to stay operational.

The report was based on the July-September financial results, and was filed by the Airline on Monday November 21.

The report also expressed over the cash-strapped Jet Lite, the low-fare unit of the Airline, and stated that it needs more funds to remain operational.

Jet Airways enjoys a quarter of the marketshare in the country, and had reported a profit last year. However, this September it suffered a net loss due to rise in fuel prices and other factors. This was the second straight quarterly net loss posted by the company.

However, analysts feel that Jet Airways would be able tide over the problem soon. The company stated that it is planning to raise up to $300 million through the sale and leaseback of 40 planes, and that it has a healthy balance sheet in comparison to Kingfisher.