India's Jet Airways to suspend operations after banks reject funding request

17 April, 2019, 18:39 | Author: Eric Barnett
  • India's Jet Airways to suspend all operations after banks reject funding request

India's Jet Airways Ltd will be forced to shut down as soon as Wednesday (April 17) if it does not get emergency funding from its lenders, two sources familiar with the matter said on Tuesday. Hence the government has decided not to meddle in the carrier's affairs and let the lenders take a call. On Wednesday, the Jet Airways website listed only 37 domestic flights and had an additional nine-page list of canceled flights, saying that the schedule was impacted by "operational reasons".

"The Jet Airways management's request for Rs 400 crore emergency funds has been rejected", banking sources told PTI.

The airline, which has a huge debt pile on its books, is in the midst of a stake sale process with bids being scrutinised for the final round.

This comes after the airline had already grounded most of its fleet and temporarily cancelled large amounts of flights, including all worldwide services. The 63-year-old liquir baron is wanted in India on alleged fraud and money laundering charges amounting to an estimated Rs 9,000 crores.

It operated 600 domestic and 380 global routes, including out of London, Amsterdam and Paris, and had grown rapidly before it started to lose market share after the entry of low-priced airlines like IndiGo & SpiceJet.

"The last flight will operate today", it added.

The airline, saddled with roughly $1.2 billion of bank debt, has been teetering for weeks after failing to receive a stop-gap loan of about $217 million from its lenders, as part of a rescue deal agreed in late March.


Speaking to newspersons after an interaction with Rajiv Kumar, Secretary, Department of Financial Services, Sunil Mehta Punjab National Bank Managing Director & CEO, said: "Discussions for reviving the airline are under way and nothing has been finalised as of now".

Another user, a travel agent, appealed to the Prime Minister's Office, seeking refund.

Jet Airways had said earlier on Wednesday it was working to "minimise guest inconvenience" by using its contact centres and social media teams.

Jet and its lead lender State Bank of India (SBI) did not immediately respond to requests for comment.

"Even though we were fierce competitors, my sympathies go out to Naresh and Neeta Goyal who built Jet Airways that India should be extremely proud of".

Mehta's comments come after Jet informed all employees in a letter on Monday it was extending a suspension of global flights until Thursday due to a lack of funds.

Pilots, engineers and ground staff have not been paid for months while passengers have been left stranded around the world.

Recommended:



Popular

Police seek public’s help in attempted murder disguised as delivery
Detective Kettles said the woman spent several months in hospital and would be in a "recovery phase for the rest of her life". Authorities have identified "potential motives" for the attempted slaying, but are refusing to say what they could be.

Loni Love Reveals The Details Of Her Conversation With Jussie Smollett
Foxx had recused herself from the case in February after she had communications with one of Smollett's relatives. Inspector General Patrick Blanchard will be conducting an investigation of how Foxx's office handled the case.

Game Of Thrones Sophie Turner reveals emotional depression battle
The Jonas Brothers' recently reunited for Sucker , which also featured Priyanka, Sophie and Danielle Jonas (Kevin's wife). Sophie Turner was just a young teen when she rocketed to fame as Sansa Stark on Game of Thrones in 2011.

What Did Scientists Learn From First Black Hole Photo?
The moniker comes from an 18th-century chant describing the creation of the Hawaiian universe. The fact that black holes do not allow light to escape makes viewing them hard .

Trump vetoes congressional resolution to end US involvement in Yemen war
Ro Khanna told The Daily Caller News Foundation he hoped the president would stand against endless wars and sign the resolution. The U.S. has provided billions of dollars of arms to the Saudi-led coalition fighting against Iran-backed rebels in Yemen .

Hoda Kotb announces she’s adopted a second child!
Today show host Hoda Kotb adopted her second baby girl, and she announced the exciting news over the phone on Tuesday during the show. "In your life, you think that maybe you've gotten what you deserve".

Honor 20 series set for London launch on May 21
The smartphone, reportedly dubbed Honor 8S , will come with a waterdrop notch display and an octa-core processor under the hood. The two phones will probably resemble the HONOR View20 to a degree as well, or at least that's expected to happen.

Duke star Zion Williamson declares for the National Basketball Association draft
Williamson is highly thought of in NBA Draft circles, seen as one of the best prospects the process has seen in the last 25 years. Williamson thanked a number of people in the video, including coach Mike Krzyzewski, his mother and Duke fans for their support.

Surface Buds? Microsoft working on its own Apple AirPods competitor, report says
They'll come with a wireless charging case akin to the one just released with Apple's second-generation AirPods. The earbuds are said to come with Cortana integration and may include noise cancellation feature as well.

OnePlus 7 launch date to be revealed tomorrow, hints CEO Pete Lau
At first glance, there's very little difference between this probable OnePlus 7 design and the previous generation OnePlus 6T . We can't say for sure what the CEO has in the offing but we believe the launch date for the OnePlus 7 may finally be announced.