Published: Wed, April 17, 2019
Money | By Ethel Goodwin

Jet Airways management proposes suspension of all ops - ET Now

Jet Airways management proposes suspension of all ops - ET Now

Prabhu has also asked Civil Aviation Secretary Pradeep Singh Kharola to take necessary steps to protect the rights and safety of passengers.

A section of the Jet Airways management was in favour of a temporary shutdown until emergency funds are made available, two people aware of the development said, requesting anonymity.

Jet Airways has a debt burden of more than Rs 8,000 crore.

However, the airline's lenders said they remain committed to its revival.

With no funds coming from lenders, the management and the staff of the beleaguered airline conducted a puja at the Jet hangar of the Mumbai airport on April 14.

Early today, shares of Jet Airways tumbled almost 19 per cent in intra-day trade after the debt-laden airline extended the cancellation of global operations till April 19 as the lenders failed to reach a consensus on releasing emergency interim funds to the airline. More clarity is likely by late evening.

The SBI-led consortium is trying to find a buyer for Jet, which was until recently India's second-biggest airline by market share.

Airlines were advised to continue to monitor at their level and provide information to the DGCA to keep fares low as far as possible, he noted.

A meeting of the Jet Airways board is underway to take a final call on shutting down operations.

According to Flightradar24 ADS-B data, Jet Airways has not operated any of its jet aircraft since Friday, April 12, 2019.

Entities seeking resolution under the Insolvency and Bankruptcy Code (IBC) should have to first get the go-ahead from the tribunal. "SBI is working on the emergency funding, everything is under discussion, nothing is finalised".

Since the March 25 resolution to infuse Rs 1,500 crore into the airline is yet to fructify, the once leading airline has been defaulting on payments, forcing its lessors to retake nearly all its planes and was operating just about six planes as of Tuesday.

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

"Tuesday alone 23 pilots left the airline", the source claimed, adding that over 100-odd pilots have joined budget carrier IndiGo.

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