Jet Airways stares into abyss as banks refuse funding support

Could Etihad support seven daily flights to the UK

Could Etihad support seven daily flights to the UK

Even as the much-needed funding remains elusive for Jet Airways, merchant banker SBI Caps has started the process for sale of the financially troubled carrier for lenders.

Chief Executive Officer Vinay Dube said in an internal communication that the lenders were unable to decide on the emergency funding, and another meeting will be held on Tuesday, PTI reported. "The interim funding has not been forthcoming thus far, and as a result of this, we have extended cancellation of worldwide operations through Thursday, April 19", CEO Vinay Dube said in a letter written to staff.

As per ICRA's report, the airline had large repayments due in March to the tune of Rs 1,700 crores and further Rs 2,445 crore due in FY20 and Rs 2,168 crore due in FY21. "The prospective bidders will be shortlisted by SBI CAPs shortly", State Bank of India said in a statement.

In a damage control exercise, the bank said that necessary support to facilitate the process was being extended by the lenders in the consortium.

On Sunday, Jet's pilots' union deferred its decision of "no pay no work" from Monday, citing the meeting of the lenders' consortium with the airline management slated for later in the day. "Cooperation by and support from all the other stakeholders will be the key to the success of the process", it said.

NY Times, Wall Street Journal win Pulitzers for Trump probes
The late iconic musician was honored with the Pulitzer Prize Special Citation for her contribution to American music and culture. Monday's wins by the Times and The Wall Street Journal and freelance cartoonist Darrin Bell may further anger the president.

India's civil aviation regulator, the Directorate General of Civil Aviation, said on Monday that lessors had applied to de-register a dozen more aircraft being operated by Jet Airways. "Feel exploited. Going to other airlines at a salary cut".

The debt-ridden airline is operating only six to seven planes at present.

With delay in fund infusion, Jet's operations have been shrinking.

The airline had more than 120 aircraft operating a year ago, but competition from low-priced carriers such as IndiGo and SpiceJet Ltd, together with high oil prices, hefty fuel taxes and a weak rupee have lately piled on pressure.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.