Flying for over 25 years, Jet Airways grounds operations temporarily from tonight

Cornelia Mascio
Апреля 17, 2019

"Even though Jet [Airways] was a major competitor to Kingfisher at the time, I feel sorry to see such a large private airline on the brink of failure when the government used Rs 35,000 crore of public funds to bail out Air India", Mallya tweeted.

Jet, which did not respond to requests for comment, saw its shares fall by as much as 18.5 percent on Tuesday after Indian media reported that Jet's management had advised the airline's board to temporarily suspend the company's operations.

"Every time I say that I am willing to pay 100 percent back to the PSU Banks, media say I am spooked, terrified etc of extradition from the India".

Speaking to reporters, Civil Aviation Secretary Pradeep Singh Kharola said the Directorate General of Civil Aviation (DGCA) was monitoring 40 high-density routes.

Jet Airways aircraft at the Chhatrapati Shivaji Maharaj International Airport in Mumbai on Tuesday. "Why don't Banks take the money I offered first?" He added that at least 10 more aircraft will be inducted by other airlines in a month.

An airline executive said that everything will depend upon the interim funding from the lenders and he is "not sure" whether the airline will operate on Wednesday. "The interim funding has not been forthcoming thus far, and as a result, we have extended cancellation of worldwide operations until April 19". Goyal and his wife Anita Goyal had already stepped down from the board of the airline.

In an email to its employees, Vinay Dube also extended the cancellation of its west-bound flights, to and from Amsterdam, London, and Paris until 19th April. Representatives of various lenders to Jet Airways are also understood to have discussed issues related to the beleaguered airline with Financial Services Secretary Rajiv Kumar.

The consortium took control of Jet in March, pledging to give $218m in "immediate funding support" as part of a debt resolution plan.

A collapse of Jet, and the loss of more than 20,000 jobs, would deal a blow to Prime Minister Narendra Modi's pro-business reputation as he seeks a second term in ongoing national elections. The Guild also postponed their scheduled strike over the non-payment of salaries.

It has repeatedly defaulted on loans and failed to pay staff in recent months.

The moves come even as Jet scrambles to secure emergency funds and its lenders try to hurry through a sale process to identify an investor willing to acquire a majority stake in the airline and attempt to turn it around. SBI Capital Markets, which has the mandate for the stake sale on behalf of the SBI-led consortium, is now vetting the initial bids received and as per reports the shortlisted investors will be given time till May 10 to submit binding bids.

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