Published: Wed, April 17, 2019
Economy | By

Lenders discussing ways to revive Jet Airways; fund infusion likely soon

Lenders discussing ways to revive Jet Airways; fund infusion likely soon

India's Jet Airways Ltd will be forced to shut down as soon as Wednesday if it does not get emergency funding from its lenders, two sources familiar with the matter said on Tuesday. Meanwhile, the urgently-needed rescue aid from banks is still not confirmed as lenders can not agree as to the best course of action.

Mumbai: According to sources, Jet Airways founder Naresh Goyal has decided not to bid for acquiring stake in the cash-strapped airline.

There has been an adverse impact on the number of flights being operated in various routes following Jet Airways drastically curtailing its operations. "The interim funding has not been forthcoming thus far and as a result of which we have extended cancellation of worldwide operations through Thursday, April 19", he wrote. The management also reportedly has warned lenders that it has board's approval to halt all operations if lenders don't agree to finance.

Separately, ET Now reported that the Export-Import Bank of the United States (EXIM) had recalled all loans to Jet and was seeking to repossess all the planes it funded.

"The company continues to work proactively with the Indian lenders to provide all the support which may be required, to help us resurrect Jet Airways, including working closely with the potential parties that are keen on bidding for the airline", Dube added.

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

Only the shortlisted candidates will be allowed to bid, said the sources on condition of anonymity.

A senior official at DGCA said that ticket prices on high-density routes have risen up to 30 per cent in last one month.

Earlier in the day, Civil Aviation Minister Suresh Prabhu had called for a review of issues related to struggling Jet Airways, including rising fares and flight cancellations.

The board of the full service carrier, which is now operating less than 10 aircraft, is meeting in Mumbai on April 16.

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

Once de-registered, lessors are free to take a plane out of the country and lease it to other airlines.

Jet shares closed 8.1 percent lower at 240.50 rupees.

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