August 22, 2018 / 10:40 AM / 3 months ago

UPDATE 1-India's Jet Airways to discuss turnaround at Monday board meeting

(Adds background on cash crisis, reported probe, potential TPG deal)

Aug 22 (Reuters) - Cash-strapped Indian carrier Jet Airways will discuss ways to cut costs and turn its business around when its board of directors meets on Monday, the airline said on Wednesday.

Jet had told staff this month it was running out of money, a source had told Reuters, but the airline had denied this and said it was confident of cutting costs and keeping planes flying.

Airline profits in the world’s fastest-growing aviation market are taking a hit due to rising fuel prices, a weaker rupee and an airfare war.

Jet had this month deferred its first-quarter financial results by a few weeks after its audit committee declined to sign off on them, “pending closure of certain matters”. The results will also be discussed at Monday’s board meeting, Jet said.

Reuters reported this week that private equity firm TPG Capital was considering investing in Jet but is not close to finalising a deal, a plan that could help the airline raise money.

Separately, Jet has said it has not received any communication from India’s corporate affairs ministry after media reports said the airline was being probed for allegations that it siphoned off funds. (Reporting by Sharnya G in Bengaluru; Editing by Sai Sachin Ravikumar)

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