Jet Airways – Airline’s future course likely to be decided on Monday.
The fate of Jet Airways, once India’s leading private full time-carrier, is likely to be decided on Monday as lenders are expected to meet with the airline management to discuss on the infusion of
interim funding of Rs 1500 crore.
Consortium of lenders, led by the SBI, had stated infusion of Rs 1500 crore emergency fund to keep operations at the airline in motion when they took over majority stake in the airline last month-
which also marked the exodus of promoter Naresh Goyal and wife Anita Goyal from Jet’s board.
However, the airline is yet to receive the funds. Acute shortage of finance has made Jet to suspend its international flights till Monday, cancel most of its domestic flights and is operating only 6-7 aircraft over the weekend.
Any further crises at the airline might pose a threat to its existence as the current norms say airline needs to fly at least 5 planes in order to maintain its permit of a scheduled operator. Further, a large section of its pilots, has given a no flying ultimatum from April 15 to the airline if the management fails to
clear their pending salaries.
Among all the uncertainties, the lenders concluded the first round of bidding process Friday. A number of reports said that as many as five parties, including Naresh Goyal, have submitted expression of
interest to buy stake in the airlines. The lenders have offered a stake from 31.2 to 75 per cent of the company on a fully diluted basis.
Other players who possibly have submitted bids are Etihad Airways, TPG Capital, and National Infrastructure Investment Fund. The lenders are expected to make a formal announcement on the name of bidders soon.