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Last Updated : Apr 15, 2019 08:31 PM IST | Source: Moneycontrol.com

Setback for Jet Airways, banks refuse interim funding

The Jet Airways board will meet on April 16 to consider the future course of action.

Prince Mathews Thomas @prince0879

In a serious setback to Jet Airways, its lenders have refused to infuse interim funds, thereby putting a big question mark on its chances of survival. The senior management will brief the airline's board on April 16, said its top official.

In a letter to employees soon after the meeting with banks proved futile, Jet Airways CEO Vinay Dube told employees that "Management will seek guidance from the Board on the next steps forward."

He said:

"The interim funding has not been forthcoming thus far, and as a result of this we have extended cancellation of international operations through Thursday, April 18.

"Please note that the current status of our engagement with the lenders and other related matters shall be placed before the Board in the meeting scheduled for tomorrow morning, where the Management will seek guidance from the Board on the next steps forward. We will keep you updated on all critical developments."

The funds were crucial to keep Jet flying. The airline was operating just seven aircraft, out of 119, and had suspended its international operations from April 13. In the domestic market, it was operating less than 50 flights a day.

The banks, which had earlier promised Rs 1,500 crore in emergency funding, had transferred only about Rs 250 crore. They were reluctant to give more, given the high debt of the airline. Jet has debts of over Rs 8,000 crore.
First Published on Apr 15, 2019 07:22 pm
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