JET Airways Yet To Be Out Of the Woods with Lenders Failing To Reach Consensus on Interim Emergency Funding

MUMBAI headquartered Jet Airways, till the other day India’s second-largest airliner after IndiGo with a 17.8% passenger market, is likely to be temporarily shut down operations as the lenders have failed to approve emergency funding. Founder and former chairman Naresh Goyal has withdrawn from making a bid for a stake in the airways  facing an unprecedented  financial crisis as the employees’  salary dues  are mounting .It has now fewer than 10 planes after  temporarily suspending international operations. Civil Aviation Minister Suresh Prabhu has called for trying to find a way out and reviewed varies problem including rising fares and flight cancellations. Prabhu has also asked Civil Aviation Secretary Pradeep Singh Kharola to take necessary steps to protect the rights and safety of passengers. Lenders are yet take a final decision on providing emergency funds to the debt ridden carrier. SBI Capital Market is mandated for selling the Jet Airways on behalf of the SBI-led consortium of the domestic lenders. Meanwhile, shares of Jet Airways fallen about 19 per cent on Tuesday, April 16 amid reports that the company is likely to be temporarily shut down operations.  Goyal and his wife Anita Goyal have stepped down from the board of the airline having more than Rs 8,000 crore debts. The board of directors of the debt-ridden airline met on Tuesday to discuss the future course of action after a promised Rs 1,500 crore fund infusion was not released by the lenders despite several meetings. The board is expected to meet again to find out as to how fund infusion is  possible .Touted  as India’s largest airline with a fleet of 123 aircraft, Jet Airways has now been has  only seven-plane operation as losses crossed over Rs 10,000 crore and is under pressure from lenders, lessors, pilots, engineers  and other employees  for payment .With SBI led consortium unable to take common  stand on interim funding  the beleaguered airline ,CEO Vinay Dubey yesterday announced that  Jet Airways has extended cancellation of international operations till April 19.