Beleaguered airline Jet cancels worldwide flights till April 18

  • Beleaguered airline Jet cancels worldwide flights till April 18

Beleaguered airline Jet cancels worldwide flights till April 18

Corroborating this, a Jet Airways official told IANS in New Delhi: "A proposal for a fresh fund infusion has been given to the lenders". With no funds coming from lenders, the beleaguered airline has extended suspension of its global operations till April 18.

India's first private airline Jet Airways is headed towards a total grounding and a decision could be taken as early as Tuesday after a meeting of its board of directors.

Currently, the airline owes over ₹8,000 crore to a consortium of lenders led by the state-run State Bank of India (SBI). "The interim funding has not been forthcoming thus far, and as a result of this, we have extended cancellation of global operations through Thursday, April 19", CEO Vinay Dube said in a letter written to staff. The latest meeting with lenders on Monday too remained inconclusive.

Local media have reported that as many as six parties have submitted expressions of interest, though it is still far from clear if an acceptable bid will materialize.

The SBI is acting on behalf of the group of lenders as part of the bank-led resolution process. "Cooperation by and support from all the other stakeholders will be the key to the success of the process", it said. The airline's fleet has shrunk to 7 aircraft from 119, a few months back. "Feel exploited. Going to other airlines at a salary cut".

The full service carrier's situation is critical as the airline, that once operated around 120 aircraft, is now left with just 16 planes in its fleet.

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.

Earlier in the day, Jet Airways' employees staged a protest in Mumbai demanding that the debt-laden airline be saved from shutting down.