Stricken Jet Airways lenders to decide on emergency cash

Understanding what lies ahead of Jet Airways

Business 13 Apr 2019 What will happen to cash-strapped Jet Airways An explainer

Also on Monday, Jet Airways pilots demonstrated in Mumbai after deciding against a strike, saying they had not been paid in four months and asking India's government for a lifeline.

The lenders, who have so far released around Rs 200 crore in tranches, have still not reached a consensus on providing the remaining sum of the promised Rs 1,500-crore interim funding in one part, sources said, adding that other than the State Bank of India, no other bank is willing to lend more loans to the beleaguered airline.

India's ailing Jet Airways drastically cut back its operations on Monday amid talks with investors on purchasing a controlling stake in the debt-laden airline.

"It has come to our notice that there is a critical meeting planned tomorrow (Monday) morning with the airline management and SBI".

Meanwhile, the airline extended the suspension of its services to Toronto and Paris from Chennai and back, besides withdrawing services from SAARC and ASEAN routes for an indefinite period. "In light of the meeting, members have requested through their Team Leaders that call of No Pay No Work be deferred to give the airline a chance of survival".

Passengers have been left stranded and on Friday airline staff protested at Mumbai's airport.

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Earlier, the airline's pilots, engineers and cabin crew members assembled at the headquarters to show their solidarity.

The airline is operating just 6-7 planes, with nearly its entire fleet being grounded due to non-payment of rentals to lessors amid severe paucity of cash. So substantial money is needed to activate the grounded 737s, pay the lessors, oil companies, employee salaries.

Goyal quit as chairman of the carrier last month under a debt resolution plan that saw lenders taking control of the airline.

The union asserted that it will meet on Monday with the airline management and State Bank of India (SBI) as no collective decision has been taken yet.

Following complaints by passengers of lack of information on cancellation and non-receipt of refunds, civil aviation secretary Pradeep Singh Kharola had on Friday said that the Centre had asked Jet Airways to inform passengers 48 hours in advance about flight cancellations and take their problems into consideration.

Founded in 1974, Jet Air was a powerful General Sales Agents (GSA) that represented as many as 17 global airlines before it spawned Jet Airways in the 1990s.

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