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Jet Airways suspends international operations until April 15; receives some more EoIs as deadline ends

There are no funds to continue the international operations, say company officials

April 12, 2019 / 21:47 IST
     
     
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    Distressed airline Jet Airways has suspended international operations until April 15, as a fund crunch continues to force the company to cut its operations.

    However, sources confirmed the airline has received some more expression of interest (EoIs) before the deadline to participate in the bidding process ended at 6 pm today.

    On April 11, the airline had curtailed international flights, including those to London and Amsterdam, saying the suspension will be effective until the morning of April 12.

    But officials said there were no more funds to continue the international flights.

    The development comes even as senior Jet officials are to brief officials at Ministry of Civil Aviation. The company officials have also been in talks with their lenders, raising hopes that the banks would transfer funds to the airline.

    While the banks had promised Rs 1,500 crore in emergency funding, only about Rs 250 crore has been transferred so far.

    Apart from international flights, Jet's domestic operations have also been severely impacted.

    Hundreds of its employees gathered at the airline's headquarters on Friday afternoon, asking for clarity on the salary dues. Jet had deferred March salary payments to all its employees. Its senior management, pilots and engineers haven't been paid since January.

    Sources added the banks may transfer just enough funds to pay the ground staff.

    Meanwhile, Jet employees, including pilots, engineers and cabin crew, plan to have a 'Save Jet Airways Human Chain' at Terminal 3 of Delhi airport. This will be done for an hour from 3.30pm.

    Prince Mathews Thomas
    Prince Mathews Thomas heads the corporate bureau of Moneycontrol. He has been covering the business world for 16 years, having worked in The Hindu Business Line, Forbes India, Dow Jones Newswires, The Economic Times, Business Standard and The Week. A Chevening scholar, Prince has also authored The Consolidators, a book on second generation entrepreneurs.
    Parnika Sokhi
    first published: Apr 12, 2019 05:50 pm

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