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

Stricken Jet Airways lenders to decide on emergency cash

Stricken Jet Airways lenders to decide on emergency cash

"Till date we are awaiting the funding and, meanwhile, our beloved airline is dying a slow death along with unpaid salaries of pilots and engineers for over 3 months", a member said.

Right now, only 7 aircraft are being used by Jet for domestic routes, rest all flights have been canceled. "We also appeal Prime Minister Narendra Modi to save 20,000 odd jobs at the airline", National Aviator's Guild (NAG) vice-president Adim Valiani told reporters at the airline's headquarter, Siroya Centre, here on Monday.

The official said that the airline has suspended its global operations till Monday.

"Being a perishable business, an airline needs to get a substantial sum of money in one part so that it can manage its operations, even on a reduced state, properly". Jet Airways pilots demonstrated in Mumbai on Monday, saying they had not received a salary in four months.

Jet Airways is now engaged in talks with lenders to try to keep the struggling airline afloat.

Since January, it has not been able to pay salaries to pilots and maintenance engineers.

The crisis at Jet has deepened in recent weeks as lessors have started applying to deregister planes, signalling the planned bailout had failed to assuage their concerns.

After creditors started taking claim of aircraft owned by Jet Airways, they have cancelled all global flights till Monday.

Cash-strapped Jet Airways is now flying less than 50 domestic flights, a senior official of aviation regulator DGCA said on Friday. This apart, the airline has also defaulted on the March salary of other categories of employees as well.

State Bank of India and other creditors have so far been unable to staunch the bleeding at Jet Airways, whose fleet of aircraft has dwindled to 14 from 119 on December 31, when the company first defaulted on some of its more than $1 billion in debt. The airline will create appropriate security over the company's assets for securing the existing facilities extended by the lenders and the proposed immediate funding support of up to Rs 1,500 crore by way of an appropriate debt instrument.

Lead lender SBI has been looking for a new investor in the airline to acquire up to 75% stake in Jet Airways.

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