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Jet Airways pilots body defers 'no flying' decision

17 April 2019

Lenders have been prudent on giving temporary credit to the airline, given the vulnerable state of its operations.

As the crisis in the private airline deepened, the Prime Minister's Office has called an urgent meeting to discuss the situation, official sources said.

"It has come to our notice that there is a critical meeting planned tomorrow (Monday) morning with the airline management and SBI".

"Depending on what the banks decide, the future course of action would be taken", Kharola said.

Currently, Jet Airways is operating only 6-7 planes, dozens of others were seized by creditors in recent weeks.

The airline is credited with successfully breaking the monopoly of state-run Air India Ltd. and was once India's second-biggest carrier, but its fleet has dwindled to 26 planes from 124 as recently as January. The fate of the airline hangs in the balance as it has hardly any neither pilots nor aircraft left to sustain daily operations. Further, it has closed reservations for its Mumbai-London, Mumbai-Amsterdam-Mumbai and Bangalore-Amsterdam flights, till April 18, according to the information.

Jet owns 16 out of these 26 aircraft.

Siroya Centre is Jet Airways headquarters in Andheri suburb in Mumbai. Jet Airways independent director Rajshree Pathy quit on Saturday, the airline said in an exchange filing. A strategic bidder should have a net worth of at least 10 billion rupees ($144 million) in the preceding financial year, or at least three years of experience in the airline business.

The de-registration request section on the DGCA website showed on Friday that lessors have applied to de-register 19 aircraft owing to unpaid dues.

Jet Airways is reeling under severe debt, and have no money to pay for salaries anymore.

Company Chairman Naresh Goyal, who founded the airline in 1992, resigned from the board last month but submitted an expression of interest on Friday to make a bid, Indian news media reported.

An SBI-led consortium of lenders had taken the management control of Jet last month post a debt-recast deal, under which the lenders had proposed to infuse Rs 1,500 crore in the ailing carrier in their bid to keep it afloat till it gets an investor.

Jet Airways pilots body defers 'no flying' decision