Jet Airways on the verge of complete shutdown
Debt-laden Jet Airways is likely to temporarily shut down all of its operations as the airline failed to get emergency funding from lenders yesterday. Jet Airways' board is scheduled to meet today to plan future course of action now.
The airline has failed to get the expected Rs 1,500 crore interim funding from lenders despite several meetings.
With the delay in fund infusion, Jet's operations have been shrinking. According to industry sources, the company is almost out of funds and is relying solely on the scant funds being infused by lenders on an expense-to-expense basis.
However, the fuel supply is expected to run out from today, afternoon as fresh payments would be required for vendors. Hence a total shutdown is imminent.
The airline's fleet has shrunk to seven aircraft from 119, a few months back.
Meanwhile, multiple banking sources said that the lenders to Jet Airways are scheduled to meet today to finalise binding bids for the cash-strapped airline.
Jet Airways has more than Rs 8,000 crore in debt and is looking for urgent liquidity infusion to pay its pilots, engineers and make payments to its lessors.
Vinay Dube, Chief Executive Officer of Jet Airways wrote to staff yesterday stating the management would seek guidance from the board on the next steps.
Dube said in his message to employees that the airline has been working with lenders to secure interim funding for its operations. "The interim funding has not been forthcoming thus far. As a result, we have extended cancellation of international operations through Thursday, April 19," he wrote. "We will keep you updated on all critical developments," he added.
