Bad Days for Aircel ahead.
New Delhi: India’s smallest private mobile operator Aircel is planning to file for bankruptcy. the reason behiind this is stiff competition in the sector. The company has warned at least 5,000 staffers to brace for “difficult” times ahead. The company which was facing call drop issues for quite some time has informed its employees that the future of the company is in question, because of less funds. For quite some time they have not recieved any funds and they are functioning solely on the revenues generated from their business.
The telecom company has been severely hurt after Reliance Jio entered the telecom sector. Airtel, Idea & Vodafone too were affected but the impact on Aircel was much more.
Aircel had reported a quarterly profit of Rs 120 crore in July 2016, before Reliance Jio entered the market. However, soon after its entry, Aircel’s had a downfall and by the end of July 2017, its profit numbers dropped to Rs five crore and recorded an operational loss of Rs 120 crore in December 2017. Recently, Idea also turned its back on Aircel, with total dues of Rs 60 crore pending for three months.
“The company expects things to get even more difficult in coming days,” said Heerjee.
Stating that the weeks ahead will be critical, he said the board will be reviewing and evaluating the options for the company, indicating that it may file for bankruptcy.
As of now, Aircel is consulting all its stakeholders and lenders.
“Our financial situation has resulted in network and system outages,” said Heerjee, adding that millions of Aircel’s customers have been impacted. T
he company has stopped services in six circles to focus on the better-performing ones.
There are high chances that the company will file for bankruptcy.