Lenders discussing ways to revive Jet Airways; fund infusion likely soon

With no funds coming from lenders, Jet Airways now seeking divine intervention

Amid reports of Jet Airways temporary shut down, Goyal opts out from bidding

Amid concerns over rising ticket prices in the backdrop of crisis-hit Jet Airways drastically curtailing operations, aviation regulator DGCA has asked airlines to reduce fares to "reasonable levels" on at least 10 high-density routes, Civil Aviation Secretary Pradeep Singh Kharola told PTI. Meanwhile, the urgently-needed rescue aid from banks is still not confirmed as lenders can not agree as to the best course of action.

Earlier in the day, sources said Jet Airways founder Naresh Goyal has decided not to bid for acquiring stake in the cash-strapped airline.

With no funds coming in from its lenders, the beleaguered Jet Airways had to extend the suspension of its worldwide flights till April 18. However, on April 15, the lenders could not agree to transfer the funds.

"The interim funding has not been forthcoming thus far, and as a result, we have extended cancellation of worldwide operations through Thursday", said Jet Airways (India) CEO Vinay Dube in a letter on Monday to the airline's over 20,000 employees. Sources have informed the board that operations will be unsustainable.

Jet, which also owes lessors, suppliers, pilots and oil companies, has been haemorrhaging planes in recent weeks as its lessors have scrambled to de-register and take back aircraft even as Jet's lenders have sought expressions of interest from investors interested in turning it around.

Jet Airways suspends all flight operations
The airline was operating five aircraft on April 17, and may continue with the same till oil marketing companies stop fuel supply. Pilots, engineers and ground staff have not been paid for months while passengers have been left stranded around the world.

"Lenders are committed to a revival plan for Jet Airways", Punjab National Bank's Managing Director Sunil Mehta said.

Mehta's comments come after Jet informed all employees in a letter on Monday it was extending a suspension of global flights until Thursday due to a lack of funds.

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

On April 12, sources said that Goyal had also put in bid for the carrier.

Jet shares closed 8.1 percent lower at 240.50 rupees.

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