Jet Airways pilot union appealed to the Supreme Court of India to direct State Bank Of India (SBI) to release interim funding to try to revive the grounded airline on Tuesday.
Once India’s second largest airline company in India Jet Airways suspended operations on the 17th of April as lenders rejected plea for emergency funds.
The debt laden airline is struggling to compete with other low-cost carriers like IndiGo and SpiceJet that dominate Indian airspace. Mountain of losses piled up on the company.
India’s largest public bank State Bank of India, decided not to give an immediate INR₹ 1500 crore after months of negotiations, resulting in the grounding of the airline. The suspension of the airline has impacted the livelihood of Jet’s 22,000 employees.
The union’s petition says it was SBI’s “singular decision” for the operations to come to a stop and “de-valuation/depreciation in the value of Jet”.
SBI’s pan was to invite bids for potential investors to take a stake in Jet, and so far no one have publicly shown interest. The final bids are expected to be submitted by the 10th of May.
Without any funds jet wasn’t able to pay rentals on its leased aircraft, fuel and salaries.
The union also asked the Supreme Court to direct the civil aviation ministry and aviation regulator to decline any further de-registration requests for Jet’s leased aircraft and not to reassign its slots to other airlines permanently.
Source : Various