Vijay Mallya laments 'airline karma' in message for cash-strapped Jet Airways

Read Jet Airways Statement On Temporary Suspension Of Flight Operations

Vijay Mallya laments 'airline karma' in message for cash-strapped Jet Airways

Jet Airways aircrafts are seen parked at Chhatrapati Shivaji Maharaj International Airport in Mumbai, Monday, April 15, 2019.

It operated 600 domestic and 380 global routes, including out of London, Amsterdam and Paris, and had grown rapidly before it started to lose market share after the entry of low-priced airlines like IndiGo & SpiceJet. The carrier has already suspended global operations till April 18.

Jet Airways said it has informed the Directorate General of Civil Aviation, and the Ministries of Civil Aviation and Finance and other relevant government institutions, of this course of action.

"Late last night, Jet Airways was informed by the State Bank of India (SBI), on behalf of the consortium of Indian lenders, that they are unable to consider its request for critical interim funding", the airline said. Representatives of various lenders to Jet Airways are also understood to have discussed issues related to the beleaguered airline with Financial Services Secretary Rajiv Kumar.

The moves come even as Jet scrambles to secure emergency funds and its lenders try to hurry through a sale process to identify an investor willing to acquire a majority stake in the airline and attempt to turn it around.

Passengers holding forward bookings with Jet Airways will need to talk to the travel firm that sold them the ticket or, if they booked direct with the airline, the credit card company.

CNBC-TV18 said Jet's lenders were likely to invite binding bids from four shortlisted suitors.

Also read: Catch-22: Jet Airways has put bankers in a situation they hate! Punjab National Bank (PNB) Managing Director and CEO Sunil Mehta said discussions were on to provide interim funding. "The last flight will operate today", it said, adding that the decision would take "immediate effect".

In another significant development, promoter Naresh Goyal, who had participated in the Expression of Interest (EoI) issued by the lenders on Friday is believed to have chose to withdraw from the bidding process. According to Kharola, the airline operated with five aircraft on Tuesday. The body's Vice President Aseem Vlianini said the union might approach the National Company Law Tribunal (NCLT) for a resolution under the Insolvency and Bankruptcy Code (IBC). And that's pretty bad news for the already disgruntled employees. "On Tuesday alone 23 pilots left the airline", the source claimed, adding that over 100-odd pilots have joined budget carrier IndiGo.

With uncertainty mounting over the fate of the airline, its shares crashed almost 19% yesterday and is now trading almost 8% lower at Rs 241.85 apiece.

Separately, ET Now reported that the Export-Import Bank of the United States (EXIM) had recalled all loans to Jet and was seeking to repossess all the planes it funded.

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