Jet Airways cancels west-bound worldwide flights, east-bound domestic flights

Lloyd Doyle
April 12, 2019

Mumbai: With lessors grounding more Jet Airways (India) Ltd planes, the airline suspended all of its worldwide flights till Friday morning, even as a government official said the airline's eligibility to fly overseas might be reviewed given that its fleet size had fallen below the required minimum.

NAG cited media reports to point out that an announcement was made by the State Bank of India (SBI) that an interim funding of ₹1,500 crore will be made to keep Jet Airways operational.

The airline, which now has 12 aircraft flying and has also considerably curtailed its worldwide and domestic services, needs an urgent infusion of funds.

Of these 117 planes, 105 were operated by Jet Airways and are now grounded due to non-payment of dues to lessors, while 12 belonging to SpiceJet are non-operational due to safety issues with the Boeing 737 MAX aircraft.

Without Jet Airways, the reduced competition could result in higher fares for travellers between Singapore and India, experts said.

He said all the EoIs have been submitted as individual entities.

"Qualified bidders will be expected to submit their respective binding bid (s) latest by April 30 subject to the terms set out under the bid document", said SBI Capital Markets in a statement.

While Goyal may not have the funds required to qualify for the pre-bid process, the EoI guidelines allow those with minimum three years experience in civil aviation to participate. It has debts of over Rs 8,000 crore.

It has put between 31 per cent and up to 75 per cent in the airline for investors.

The Jet Airways stock was again clobbered on the bourses, closing 1.14 per cent lower at Rs 260.40 on the BSE on Thursday. The airline was awarded routes such as Delhi-Bareilly, Delhi-Nashik, Indore-Hyderabad, Nagpur-Allahabad, Lucknow-Allahabad, Patna-Allahabad among various others but the airline's liquidity problems have forced it to operate on a skeletal schedule. But that hasn't happened so far. "The promised lending must come in one go and not in parts", said sources.

"As Jet's operations have shrunk significantly, the original bank guarantee will suffice for the dues unlike Kingfisher which had a huge liability".

Wednesday was a tough day for the airline as Indian Oil stopped jet fuel supplies for breaching the credit limit agreed upon.

Other reports by Iphone Fresh

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