Jet Cancels Overseas Flights Till Thursday As Funding "Not Forthcoming"
16 Avril, 2019, 08:24 | Auteur: Auguste Feret
Lenders are unlikely to extend any interim funding for Jet Airways as of now, sources told CNBC-TV18 on Monday, adding that they will weigh the seriousness of bids received before firming up on plans on funding. With no funds coming from lenders, the beleaguered airline has extended suspension of its worldwide operations till April 18.
Jet Airways board will meet tomorrow morning on the current status of engagement with the lenders and other related matters shall be placed before the board where the management will seek guidance from the board on the next steps forward.
The airline on Sunday said it has extended the cancellation of its west-bound flights - to and from Amsterdam, London and Paris - until April 16.
"The proposed equity conversion by banks, if any, will be undertaken as a transitory mechanism to facilitate the bidding-cum-sale process", the State Bank of India (SBI) said in a statement on Monday. The latest meeting with lenders on Monday too remained inconclusive.
In a damage control exercise, the bank said that necessary support to facilitate the process was being extended by the lenders in the consortium. "Feel exploited. Going to other airlines at a salary cut".
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With delay in fund infusion, Jet's operations have been shrinking.
At present, Jet is operating only 7 aircraft for domestic operations due to the grounding of over 80 per cent of its fleet by lessors owing to non-payment of dues, IANS report added.
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.
The unpaid employees of the airline have taken out silent marches in New Delhi and Mumbai. Earlier on Monday, Jet's pilots and engineers also gathered at its office in Mumbai demanding answers.
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