News Nation Logo

Crisis-hit Jet Airways extends suspension of international services till April 18

The Government Rules Stipulate An Airline Must Have At Least 20 Planes For Operating International Operations.

News Nation Bureau | Edited By : Abhinav Gupta | Updated on: 15 Apr 2019, 11:37:42 PM
Crisis-hit Jet Airways extends suspension of international services till April 19

New Delhi:

Jet Airways, which is facing the worst financial crisis in its 25-year history, on Monday extended the suspension of its international operations till April 18. 

"As you are aware, we have been working with the lenders to secure interim funding for our operations. The interim funding has not been forthcoming thus far, and as a result we have extended cancellation of international operations until April 18," said Jet Airways chief executive Vinay Dube in a mail 

"The current status of our engagement with the lenders and other related matters shall be placed before the board 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," he added.

The airline is operating just 6-7 planes per day only, with almost its entire fleet being grounded due to non-payment of rentals to lessors amid severe paucity of cash. The government rules stipulate an airline must have at least 20 planes for operating international operations.

The debt-ridden carrier has been struggling with paucity of cash to purchase jet fuel from the oil companies, which snapped supplies thrice in last more than a week demanding payment.

Earlier in the day, Jet Airways pilots body, the National Aviator's Guild, appealed the State Bank of India (SBI) to release Rs 1,500 crore, which was proposed to be infused in the ailing carrier as part of a debt-restructuring plan last month. 

The pilots along with engineers and senior management have not received salaries since January. The debt-ridden carrier has also not paid March salary to employees of other categories as well.

The Jet Airways' pilots had yesterday announced their 'no pay, no work' decision but deferred it latter, saying that they will give the carrier a chance in revival in view of Monday's meeting between the management and lenders. 

The NAG, which claims representation of around 1,100 pilots of the total 1,600 with the full-service carrier, had in late March called for no flying from April 1 over non-payment of salaries.

However, on March 31 it deferred the agitation to April 15, saying it wanted to give more time to the new management.

Last month, an SBI-led consortium of lenders had taken management control of the airline post a debt-recast deal, following which the lenders had proposed to infuse as much as Rs 1,500 crore to the carrier to keep it afloat till the time it gets a investor. 

This is a breaking news story. More details will be added soon. Please refresh the page for the updated version.

For all the Latest Business News, Download News Nation Android and iOS Mobile Apps.

First Published : 15 Apr 2019, 07:12:54 PM