Published: Wed, April 17, 2019
Economy | By

Jet Airways' creditors to meet over funding

Jet Airways' creditors to meet over funding

So we have chose to go ahead with our call of no-flying from April 15. So substantial money is needed to activate the grounded 737s, pay the lessors, oil companies, employee salaries.

"Jet Airways has now suspended operations to the SAARC and Asean destinations, as well as to Toronto and Paris from Chennai and back", Jet Airways said in a statement.

According to a PTI report, the pilots along with engineers and senior staff were last paid for December 2018.

Around the same time, the company announced it was low on working capital.

Passengers have been left stranded and on Friday airline staff protested at Mumbai's airport.

Currently, the airline owes over Rs 8,000 crore to a consortium of lenders led by the state-run State Bank of India (SBI).

The union asserted that it will meet on Monday with the airline management and State Bank of India (SBI) as no collective decision has been taken yet.

A pilot who confirmed his participation in Monday's joint visit to the airline headquarters to seek answers said, "Everytime there has been a ray of hope, it seems to flicker and die out without anything fruitful transpiring".

An Open House will be called shortly as per the availability of the venue and the committee members, its communication added.

The NAG, which claims representation of around 1,100 pilots of the total 1,600 with the full service carrier, had in late March called for no flying from April 1 over non-payment of salaries. At present, the company is trying to secure interim funding from lenders to sustain its current level of operations.

Jet Airways at present is operating only 6-7 planes as its nearly entire fleet is grounded owing to severe paucity of cash.

According to sources, the airline has also stopped accepting bookings for its Mumbai-Paris flight until June 10 and closed reservations for its Mumbai-London, Mumbai-Amsterdam-Mumbai and Bangalore-Amsterdam flights, up to April 18.

Jet Airways Aircraft Maintenance Engineers' Association (JAMEWA) said that it had no plans of going on strike.

Jet Airways' stock was off 7.6% at Tuesday's close.

Indian Minister of Civil Aviation Suresh Prabhu on Friday tweeted that the Indian Ministry of Civil Aviation would "review issues related to Jet Airways" and also "take necessary steps to minimize passenger inconvenience and ensure their safety".

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