Jet Airways' board will meet on Tuesday to chalk out future course of action after the airline failed to get emergency funding from lenders on Monday.

Jet Airways cancels all international flights till April 18 board to meet on TuesdayImage source: Papa Sierra via Flickr (CC BY-SA 2.0)
Money Jet Crisis Tuesday, April 16, 2019 - 09:48

Jet Airways' troubles don't seem to getting over anytime soon. With no funds coming from lenders, the beleaguered airline has extended suspension of its international operations till April 18.

"The interim funding has not been forthcoming thus far, and as a result we have extended cancellation of international operations through Thursday," said CEO Vinay Dube in a letter on Monday to Jet's over 20,000 employees.

Banks had earlier promised to pump Rs 1,500 crore into the airline

Jet Airways management and lenders here on Monday held marathon meetings to resolve the financial crisis and the board will meet on Tuesday morning. 

Dube said the airline had been working with lenders to secure interim funding for operations. The company management, he said would seek guidance from the board on the steps forward. "We will keep you updated on all the critical developments," the CEO assured employees.

On Friday, the airline cancelled international operations for April 12 to 15. On Sunday, it extended cancellation of West-bound flights -- to and from Amsterdam, London and Paris -- until April 16.

IANS had exclusively reported earlier in the day that Jet has stopped forward bookings for some of its international sectors, including those for east Asia. You can check the flight schedule here.

The airline is operating only 7 aircraft in domestic sectors due to grounding of 80 per cent of fleet by lessors. It has resulted in cancellation of several hundred flights and passengers getting stranded at airports.

The unpaid employees of the airline have taken out silent marches in New Delhi and Mumbai.

And while there is no information yet on when the funding will come in, SBI spokesperson said in a statement that the Bid Process for orderly sale of equity in Jet Airways is currently being run by SBI CAPS and is being vetted by the legal team. The prospective bidders will be shortlisted by SBI CAPs shortly.

“The proposed equity conversion by banks, if any, will be undertaken as a transitory mechanism to facilitate the bidding cum sale process. SBI is acting on behalf of the group of lenders as part of the Bank Led Resolution Process. Necessary support to facilitate the process is being extended by the banks in the consortium. Cooperation by and support from all the other stakeholders will be the key to the success of the process,” the statement added.