According to the latest news, it has been found that the Jet Airways temporarily suspended all the flights. On Thursday, that is 18th April 2019, the government asked the domestic airlines to advance their aircraft. They also asked them to keep the airfares in check.
It has been updated, that the Ministry of Civil Aviation has made a committee comprising of all the airport operators. Therefore, the AAI (Airport Authority of India) and Director General of aviation to suspend the flights on a temporary basis because of Jet airways crisis.
According to the updates, the jet airways have been temporarily shut down due to the aggravated problems of an airline. The potential investors are asking lenders to take around 80% haircut on their 8,500 crore debt. Therefore, the bidders have easily made an appeal to the banks to release emergency loans for this.
The investors are ready to invest funds for this project. But the lenders have made t challenging to bid the work in the time frame required. This is the statement of a person who is close to the development. He added that due to “The lack of funds has resulted in the suspension of the operations of airlines for time”. He also said that this is not giving adequate time due to diligence.
The lenders are lending funds from the State Bank of India (SBI), Etihad Airways, National Investment and Infrastructure Funds (NIIF). They are supposed to send the binding bids till 10th of May.
Etihad and SBI have not replied to the emails until now. On the other side, TPG and Indigo have declined to comment on this.
ABOUT THE JET DEBTS:
The jet is having a net debt about Rs. 8,500 crore. Therefore, the dudes for lessors and vendors add up to Rs. 3,500 crore. On the other side, potential investors said that they will take only 20% of airlines debt. This is all about the debts of the jet airways.
According to Mr. Kharola, in the last five months, the jet grounded around 75 aircraft. Whereas other airlines conducted 58 planes leaving a deficit of 17. “All the airlines said that they will induct around 30 planes in till the month of May” Kharola added.
This is why the suspension of jet airways has been declared. Due to these aggravated problems jet airways have been suspended for a short period.
The state-run that is the State Bank of India told the airlines that the consortium of lenders is unavailable. This is why they considered the private carrier’s request for the interim funding of the jet airlines.
Till now there are no sources of interim funding from the lenders as well as from the other sources. The airlines will not be able to pay for the fuels and for the other critical problems. The filing said that there are no funds for the operation to be going on.
Consequently, due to these problems that jet airways have suspended or canceled all their international as well as domestic flights. Therefore, the jet airways employees are protesting for this situation.
Stay updated with our page, to know more about the Jet Airways crisis.