Fugitive businessman and owner of the now-defunct Kingfisher Airlines Vijay Mallya on Wednesday attacked the Modi government for allegedly discriminating between state-owned and private airlines while extending his sympathies to Jet Airways founder Naresh Goyal and his wife Neeta.
In a series of tweets, Mallya asked why the government roped in public sector banks to save the crisis-hit Air India but failed to bail out private airlines.
Referring to his offer to repay 100 per cent of his loans to Indian banks and government, Mallya said, "I invested hugely into Kingfisher which rapidly grew to become India's largest and most awarded airline. True, Kingfisher borrowed from PSU Banks as well. I have offered to pay back 100 per cent but am being criminally charged instead. Airline Karma?"
Last month, Mallya had urged the banks to take his money and save the cash-strapped Jet Airways. Mallya expressed solidarity with the Goyals in another tweet.
"I repeat once again that I have placed liquid assets before the Hon'ble Karnataka High Court to pay off the PSU Banks and all other creditors. Why do the Banks not take my money? It will help them to save Jet Airways if nothing else," the liquor baron said.
"I invested over 4000 crores into Kingfisher Airlines to save the Company and its employees. Not recognised and instead slammed in every possible way. The same PSU Banks let India's finest airline with the best employees and connectivity fail ruthlessly. Double standards under NDA," read another tweet.
What we know about the Jet Airways crisis so far:
Jet's shares continued its freefall on Wednesday as the company announced a temporary shutdown citing lack of funds.
Ahead of the market opening on Thursday, the cash-strapped airlines' lenders said that they are reasonably hopeful of a successful bidding process for a stake sale.
While making the declaration of temporarily shutting down the country's only full-service private carrier on Wednesday, the company's chief executive Vinay Dube mentioned that the airline does not have an "answer" at present on the fate of its 20,000-odd employees during the stake sale process.
The SBI-led consortium of lenders has offered prospective bidders ownership of the airline anywhere between 31.2 per cent and 75 for which it had run an online bidding process between April 8 and 12 and had shortlisted four - Etihad Airways, NIIF, private equity funds TPG Capital and Indigo Partners-who can submit the final bids by May 10.
The Ministry of (MoCA) also said on Wednesday it will support the resolution process within the existing regulatory framework. In its first reaction on the latest Jet Airways temporarily shutting down its operations, the ministry said that the DGCA and other regulators are monitoring the situation and will also ensure that all rules regarding refunds, cancellations, and alternate bookings are followed strictly.
The cash-strapped airlines was forced to take the above step as it was informed by the State Bank of India (SBI)-led banking consortium that the former's request to immediately grant Rs 400 crores for maintaining the required operations was turned down. The banks refused to release any amount without additional collateral.
The Airlines previously requested lenders for interim funding of Rs 400 crore to stave off a temporary closure.
Jet Airways' founder Naresh Goyal decided not to bid for acquiring a stake in the cash-strapped airline, sources said on Tuesday. Goyal and his wife Anita Goyal had already stepped down from the board of the airline.
DGCA on Tuesday asked airlines to reduce fares on ten high-density domestic routes to reasonable levels. A senior official of the aviation regulator said that ticket prices on high-density routes have increased up to 30 per cent over the last one month.
Union Aviation Minister Suresh Prabhu on Tuesday had called for a review of issues related to the crisis-hit airline. He also asked civil aviation secretary Pradeep Singh Kharola to take necessary steps to protect the rights and safety of passengers, in the light of rising airfares and an increasing amount of flight cancellations. This was the second time in less than a week that Prabhu had publicly called for a review of the above issues.
Jet Airways CEO Vinay Dube, in an internal communication to employees on Monday, 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.”
Passengers from within and outside the country who had booked tickets with Jet Airways faced inconvenience and were left stranded at various airports, as per media reports.
Jet Airways pilots body, the National Aviator's Guild, on Monday appealed the SBI to release Rs 1,500 crore, which was proposed to be infused in the ailing carrier as part of a debt-restructuring plan as of March.
"We would like to appeal SBI to release Rs 1,500 crore funds for the airline to help it continue operations. 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, in Monday. The Guild also postponed their scheduled strike over the non-payment of salaries.
Jet's pilots along with engineers and senior staff were last paid for December 2018. The crisis-hit airline has also defaulted on the March salary of other categories of employees as well.
In a filing to BSE on Tuesday, Jet Airways reacted to queries from the stock exchanges on a media report that said it would “temporarily shut down its operations” stating it is awaiting emergency liquidity support from the lenders' consortium.