Mumbai, April 16 : Debt ridden Jet Airways is likely to cancel all flights temporarily, sources told to Media.
The carrier, which has more than Rs 8,000 crore debt, is currently operating less than 10 aircraft.
Jet Airways founder Naresh Goyal, who along with his wife Anita Goyal, had stepped down from the airline last month, is staying away from bidding for acquiring stake in the airline.
The cash-strapped airline is awaiting fresh fund infusion under a debt resolution plan. SBI Capital Markets has the mandate for Jet Airways’ sale on behalf of the SBI-led consortium of the domestic lenders to the debt-ridden private carrier.
Meanwhile, Punjab National Bank (PNB) Managing Director and CEO Sunil Mehta told news Agency ANI that the lenders are committed to Jet Airways revival plan.
“SBI, SBI caps have started working on the plan. Revival plan has not been finalised yet, discussion is still on,” he said.
The airline has suspended all its international flights till April 18 and its board is trying to chalk out future course of action after the airline failed to get emergency funding from lenders.
Following Jet Airways grounding its planes, many passengers, who were left stranded at the airports, took to social media to express their anguish.
The company also does not have sufficient funds to pay for fuel and other operational expenses.
Meanwhile, Union Minister Suresh Prabhu Tuesday directed the Ministry of Civil Aviation to review matters related to debt-ridden Jet Airways including issues around increased fares, flight cancellations and passenger rights and safety.
Prabhu’s fresh orders came a day after the cash-strapped airlines suspended all its international flights till April 18. The airlines will hold a board meeting on Tuesday to chalk out future course of action after the airline failed to get emergency funding from lenders. Meanwhile, merchant banker SBI Caps, acting on behalf of the group of lenders, has started the process for sale of the financially troubled carrier for lenders.
“The interim funding has not been forthcoming thus far, and as a result of this, we have extended cancellation of international operations through Thursday, April 18,” Jet Airways Chairman Vinay Dubey said in a statement on Monday.
Jet Airways has almost run out of funds to pay for fuel and other operational expenses. Last week, it folded up several operations after 80 per cent of its fleet was grounded due to non-payment of outstanding dues to lessors.
Industry insiders claim fuel supply is expected to run out by Tuesday afternoon as fresh payments would be required for vendors.
Following Jet Airways grounding its planes, many passengers were left stranded at the airports, who took to social media to complain.
