With no funds coming from lenders, Jet Airways now seeking divine intervention

Marco Green
April 16, 2019

Jet Airways global operations have been cancelled till Thursday, April 18, the company's CEO Vinay Dube said in a statement to employees today as it seeks interim funding of Rs 1,500 crore from group of lenders headed by the State Bank of India. With no funds coming from lenders, the beleaguered airline has extended suspension of its worldwide operations till April 18.

A body representing Jet Airways pilots had earlier on Monday appealed to Prime Minister Narendra Modi to save jobs at the airline and urged the State Bank of India to infuse the struggling carrier with Rs 1,500 crore as part of a rescue deal that was agreed upon last month. "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 18", Mr Dube said.

Dube added that the current status of the engagement with the lenders and other related matters will be placed before the Board in the meeting scheduled for Tuesday.

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.

Local media have reported that as many as six parties have submitted expressions of interest, though it is still far from clear if an acceptable bid will materialize. Necessary support to facilitate the process is being extended by other banks in the consortium.

The airline is operating only 7 aircraft in domestic sectors due to grounding of 80 per cent of fleet by lessors.

The full service carrier's situation is critical as the airline, that once operated around 120 aircraft, is now left with just 16 planes in its fleet.

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

The unpaid employees of the airline have taken out silent marches in New Delhi and Mumbai.

Other reports by Click Lancashire

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