No interim funding for Jet Airways yet, international operations to remain suspended till April 19

Sources said that lenders delayed funding because they sought more collateral from the airline’s promoter Naresh Goyal. Goyal has already pledged around 26 per cent of his stake with banks.  

Published: 15th April 2019 10:44 PM  |   Last Updated: 16th April 2019 12:13 PM   |  A+A-

Jet Airways

Jet Airways aircrafts. (File | Reuters)

Express News Service

NEW DELHI/MUMBAI: The crucial interim funding by lenders for cash-starved Jet Airways did not take place on Monday even as the Airline flew just 6-7 planes and suspended its international operations till April 19. Jet Airways CEO Vinay Dube, in an internal communication to employees, said, “Have been working with lenders to secure interim funding for operations. Interim funding has not been forthcoming thus far, & as a result of this we have extended cancellation of international operations through Thursday, April 19.”

Sources said that lenders delayed funding because they sought more collateral from the airline’s promoter Naresh Goyal. Goyal has already pledged around 26 per cent of his stake with banks.  
Dube added that the current status of engagement with lenders will be placed before the board on Tuesday, when the management will seek guidance on the next steps forward.I.

ALSO READ | Jet Airways pilots appeal to SBI for funds, also ask PM to save 20,000 jobs

n an another development, industry sources said Jet Airways had time till Tuesday afternoon to pay fuel vendors, failing which it might have to ground its operational fleet, news agency IANS reported.
It was expected that the lenders, led by the State Bank of India, in accordance with their debt restructuring plan, would infuse interim funds in the airline. 

The lenders have already closed the deadline for receiving expressions of interests for purchase of a stake in the airline. SBI said the prospective bidders will be shortlisted by SBI CAPs shortly.
Earlier in the day, civil aviation minster Suresh Prabhu said that banks and lenders were working on the problems faced by Jet Airways and they would find a solution. 

“We are already working with everybody who needs support and help, whether they are employees, customers or passengers. We are here to ensure the safety and convenience of passengers as well as the welfare of employees,” he said.However, passengers from within and outside the country who had booked tickets with Jet Airways faced inconvenience and were left stranded at various airports. As for employees, they held a protest in Mumbai over non-payment of salaries. A Jet Airways pilots’ union on Sunday deferred a decision to strike from Monday, saying that it wanted to give more time to the airline ahead of the lenders’ meeting

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