(Image source from: Livemint)
Jet Airways, which is facing the worst financial hurdle in 25 years, has extended the 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 the chief executive officer 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. The management and lenders of Jet Airways 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 canceled 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.
Jet has also stooped forward bookings for some of its international sectors, including those for east Asia, IANS reported.
The airline is operating only 7 aircraft in domestic sectors due to the grounding of 80 percent of the fleet by lessors. It has resulted in the 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.
The State Bank of India spokesperson said in a statement that the Bid Process for an 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.
By Sowmya Sangam