Published: Wed, April 17, 2019
Finance | By Loren Pratt

Jet Airways seeks emergency funds, operates only 5 planes

Jet Airways seeks emergency funds, operates only 5 planes

Jet Airways stock plunged as much as 18.56 per cent to Rs 213.20 in the afternoon trade on Tuesday after reports suggested the airline may shut down its operations temporarily. Meanwhile, the urgently-needed rescue aid from banks is still not confirmed as lenders can not agree as to the best course of action. However, on April 15, the lenders could not agree to transfer the funds.

Dube, in a letter to employees late on Tuesday that was seen by Reuters, said Jet has stressed to its lenders the need for urgent funding, critical to the continuation of its operations. The airline's board will meet on Tuesday morning to see what to do now in the absence of the funds that were required to keep operating.

Seeking to take pilot's seat after he was nudged by the lenders to quit, Goyal had placed his bid through Jetair Pvt Ltd and backed by two foreign enntities.

"The airline has failed to garner the funds it was desperately looking for to continue operations", he said.

Pursuant to a debt resolution plan approved by the airline's board last month, SBI Capital Markets, on April 8, invited Expression of Interest (EoI) from potential investors to buy out 75 percent stake in the airline.

CNBC-TV18 said Jet's lenders were likely to invite binding bids from four shortlisted suitors. Jet management has informed the board that lenders are still divided on the issue of interim funding, the sources said requesting anonymity.

"Directed Secretary @MoCA_GoI to review issues related to Jet Airways, especially increasing fares, flight cancellations etc", Prabhu said in a tweet.

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

Following Jet Airways grounding its planes, many passengers were left stranded at the airports, who took to social media to complain.

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