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17 April 2019, 05:59 | Hattie Nash
India's Jet extends international cancellations as airline teeters
"It has come to our notice that there is a critical meeting planned on Monday morning with the airline management and SBI". So we have made a decision to go ahead with our call of no-flying from April 15. The airline is also facing protests from its employees, who have not been paid on time for months.
Meanwhile, the airline extended the suspension of its services to Toronto and Paris from Chennai and back, besides withdrawing services from SAARC and ASEAN routes for an indefinite period.
The pilots along with engineers and senior management have not received their salaries for three months, whereas employees of other categories have not been paid for the month of March.
Around the same time, the company announced it was low on working capital.
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A pilot who confirmed his participation in Monday's joint visit to the airline headquarters to seek answers said, "Everytime there has been a ray of hope, it seems to flicker and die out without anything fruitful transpiring".
It is learnt that the lenders are willing to infuse Rs 20 crore daily till May 7 as they expect the new investor to take control of the airline on the date and the remaining legalities and all other steps of the stake sale process can then be completed by May 31.
According to sources, the meeting was called after Civil Aviation Minister Suresh Prabhu asked secretary of the department Pradeep Singh Kharola to review issues concerning Jet Airways.
The SBI-led group of lenders had last month taken control of the airline and agreed to provide an immediate funding support of Rs. 1,500 crore.
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An Open House will be called shortly as per the availability of the venue and the committee members, the communication added.
Last week Thursday Jet Airways reportedly grounded another 10 planes due to unpaid leasing fees.
Founded in 1974, Jet Air was a powerful General Sales Agents (GSA) that represented as many as 17 global airlines before it spawned Jet Airways in the 1990s.
The airline has also cancelled its long-haul, west-bound operations to and from Amsterdam, London and Paris till April 16, Jet Airways said on Sunday.
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Close of play Friday was the deadline for prospective bidders to express an interest in acquiring a 75 percent stake in Jet, which has debts of some $1 billion.
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