Haven't received interim funding, international flights to remain suspended till April 18: Jet Airways

File photo. Photograph:( Reuters )

WION Web Team New Delhi, Delhi, India Apr 15, 2019, 08.05 PM (IST)

Jet Airways CEO Vinay Dube on Monday said that the cash-strapped aviation company has not received interim funding from lenders. Dube announced that the airways will extend the suspension of international flights until April 18, news agency Reuters reported. 

The airline, which has a debt of more than $1.2 billion, has had to ground over two-thirds of its fleet over unpaid dues to leasing companies.

Jet Airways pilots body, the National Aviator's Guild, on Monday, 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 airline is operating just 6-7 planes, with almost its entire fleet being grounded due to non-payment of rentals to lessors amid severe paucity of cash.

"We would like to appeal SBI to release Rs 1,500 crore funds for the airline to help it continue operations. We also appeal Prime Minister Narendra Modi to save 20,000 odd jobs at the airline," National Aviator's Guild ( NAG) vice president Adim Valiani told reporters at the airline's headquarter on Monday. 

The airline's pilots along with engineers and senior staff were last paid for December 2018. This apart, the airline has also defaulted on the March salary of other categories of employees as well.

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 an investor, news agency PTI reported. 

The Monday meeting with lenders was reportedly expected to take a final decision on the quantum of funds to be infused immediately to avert a possible shut down. 

A meeting between the airline management and its major lender SBI last Friday could not take a decision on the fund infusion issue.

(With inputs from agencies) 
 

Story highlights

The airline, which has a debt of more than $1.2 billion, has had to ground over two-thirds of its fleet over unpaid dues to leasing companies.