Jet Airways management proposes to halt all operations: ET Now

Lloyd Doyle
April 17, 2019

Jet Airways has sought emergency funds from banks and is now operating only five planes, Civil Aviation Secretary Pradeep Singh Kharola said Tuesday.The cash-strapped airline has already suspended its global operations till April 18.Separately, the civil aviation ministry would convene meetings of representatives of airlines and airports on April 18 to discuss capacity expansion, rising airfares and other issues. Meanwhile, the urgently-needed rescue aid from banks is still not confirmed as lenders can not agree as to the best course of action.

The cash-strapped airline has already suspended its global operations till April 18.

Jet Airways is grappling with acute financial crunch and is operating less than 10 planes besides temporarily suspending global operations. However, on April 15, the lenders could not agree to transfer the funds. Jet Airways CEO Vinay Dube assured employees, "We will keep you updated on all the critical developments".

Seeking to take pilot's seat after he was nudged by the lenders to quit, Goyal had placed his bid through Jetair Pvt Ltd and backed by two foreign enntities.

"The Jet Airways management's request for Rs 400 crore emergency funds has been rejected", banking sources told PTI. "The interim funding has not been forthcoming thus far, and as a result of this we have extended cancellation of worldwide operations through Thursday".

The Mumbai-headquartered airline, in the exchange filing, said that the operations of the beleaguered airline have been severely impacted in the last few days due to acute fund shortage.

On April 12, sources said that Goyal had also put in bid for the carrier.

Another government official said that approaching the National Company Law Tribunal (NCLT) for Jet Airways is not an option at this stage.

Separately, an Indian government official said funding was likely to come through and that the banks were not looking to take Jet to bankruptcy court.

"Directed Secretary @MoCA_GoI to review issues related to Jet Airways, especially increasing fares, flight cancellations etc", Prabhu said in a tweet.

As of 1415 GMT on Tuesday, Jet listed on its website roughly three dozen flights that it plans to operate on Wednesday.

Other reports by Iphone Fresh

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