Once India’s second largest airline, Jet Airways meets dead end?

The sorry state of Jet Airways continues, there are speculations about the airline firm shutting down operations temporarily. The shares of the company fell 18 percent when news of founder Naresh Goyal opting out of the bidding process to acquire stake in the cash strapped airline.

The CEO of the airline, Vinay Dube wrote to banks asking for an urgent INR₹ 400 crore. The Ministry of Finance said that banks are working on a package for Jet Airways and funds would be made available.

Dube in a statement to employees said, “The company, under guidance of the Board, has reached out to our lead lender, State Bank of India, yet again and stressed on the need for urgent funding requirements, critical to the continuation of the operations of our airline”.

Initially the state-owned bank, State Bank of India agreed to transfer INR₹ 1,500 crore however this amount was later brought down to INR₹ 1,000 crore, and now even a INR₹ 400 crore looks hard to come. The airline carrier already owes banks INR₹ 8000 crore.

The airline at present is operating just 5 aircrafts, and was waiting for fresh infusion of funds under a debt resolution plan. Oil companies have threatened the airline to stop fuel supply if money doesn’t come by late afternoon 17th April 2019.

SBI Caps who was overseeing the bidding process shortlisted four bidders, Etihad Airways, TPG Capital, Indigo Partners and sovereign fund National Investment and Infrastructure Fund after the founder and former chairman left the bidding process.

Leave a Reply