Jet airways suspends ops of 13 int'l routes over rentals non-payment

Marco Green
March 25, 2019

Jet is also in talks with Abu Dhabi-based Etihad - its majority stakeholder - to secure a rescue deal.

However, the task at hand for the lenders is also getting more hard as minority partner Etihad Airways has also expressed its desire to exit the venture. That has also impacted the Rs 750 crore of interim funding to keep Jet afloat, resulting in the grounding of aircraft and flight cancellations.

"The lenders will take over the airline for the time being and try to give some comfort in terms of paying the salaries, and no new promoters are likely to come in for 2-3 months".

"Jet Airways remains confident of successfully resolving the current situation in coming days".

There are reports of Etihad reaching out to state-run State Bank of India (SBI) to purchase its 24 per cent stake in the airline.

"We have been assured the Manchester-Mumbai service will be reinstated at the earliest opportunity and look forward to continuing to work with our partner Jet Airways".

"A few investors are interested".

Various domestic routes also see service reductions.

Jet Airways form last two months has been grounding planes and suspending many of its worldwide as well as domestic routes owing to lack of liquidity.

Air India Express is a low-priced airline and a fully-owned subsidiary of Air India.

The Jet Airways pilots' union had, on Tuesday, threatened to stop flying from April 1 if their salaries are not paid by March 31.

The lenders, led by SBI, are now working on debt resolution and a recapitalisation plan for the airline, but have not been able to rope in an investor yet. Some agreement has to be reached to prevent Jet Airways from going into the National Company Law Tribunal (NCLT).

"The airline's management says that the company is facing financial crisis and is not able to pay salaries to their pilots and engineers as they draw big packages every month", Valiani said and added that the rest 18,000 low-paid employees were getting their regular salaries. "The commonality of Boeing jets between the two airlines is the main draw for pilots to apply in SpiceJet", a source told IANS in Mumbai.

Kumar was in Delhi on Wednesday where he met finance minister Arun Jaitley along with aviation secretary Pradip Singh Kharola and Nripendra Misra, principal secretary to Prime Minister Narendra Modi.

Other reports by Click Lancashire

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