Jet Airways suspends operations as banks reject emergency funding

Lessors rush to repossess 4 more Jet Airways planes even as emergency funds awaited

Lessors rush to repossess 4 more Jet Airways planes even as emergency funds awaited

"Directed Secretary @MoCA_GoI to review issues related to Jet Airways, especially increasing fares and flight cancellations". They may, however, release small amount just to keep the skeletal operations running or else the airline may end up losing Aircraft Operator Permit (AOP). The carrier has already suspended global operations till April 18.

Jet Airways said essential services needed to support guest services and the re-commencement of the flight operations will be kept onboard until further notice.

"Please note that in view of the critical liquidity position of the Company, its operations have been severely impacted".

Mallya raised doubts over why so many airlines have "bitten the dust" in India. He has been putting forth his version of events through social media in recent weeks, most recently on March 31.

The 1992-founded carrier, which until recently, was India's second largest airline, is in deep financial problems and now failed to secure an emergency funding with its biggest lender, the State Bank of India (SBI).

Jet Airways had requested its lenders for aditional Rs 400 crore but it was rejected.

CNBC-TV18 said Jet's lenders were likely to invite binding bids from four shortlisted suitors. Jet Airways is saddled with debt of over Rs 8,500 crore.

"Discussions for reviving the airline are underway and nothing has been finalised as of now", Punjab National Bank Managing Director and CEO Sunil Mehta also told reporters in New Delhi on Tuesday.

In a filing before the Bombay Stock Exchange (BSE) and a statement to the media, Jet Airways said that it was informed by the State Bank of India (SBI), on behalf of the consortium of Indian Lenders, that they are unable to consider its request for critical interim funding.

On Tuesday, its former chairman, Naresh Goyal, reportedly withdrew plans to bid for a controlling stake in the company. Goyal had submitted his Expression of Interest (EoI) as part of a consortium on April 12.

These include private equity firms TPG Capital and Indigo Partners, Indian sovereign wealth fund National Investment and Infrastructure Fund (NIIF), and the UAE's Etihad Airways, which already owns a minority stake in Jet, it said. According to Kharola, the airline operated with five aircraft on Tuesday. He added that while the airline's management has said that salaries would be paid from the additional funding only, SBI has a contrary stand.

Late on Tuesday evening, the Ministry tweeted: "40 high-density routes monitored on daily basis by the DGCA".

Jet Airways has arrived at this dire crossroads nearly 26 years after getting its first two aircraft. "Almost 90% of Jet slots are unused at the moment and they are being allotted to others temporarily", top aviation bureaucrat said.

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