Jet Airways Operating 5 Planes, Seeks Emergency Funds: Aviation Secretary

Jet Airways Operating 5 Planes, Seeks Emergency Funds: Aviation Secretary
New Delhi: 

Jet Airways has sought emergency funds from banks and is currently operating only five planes, Civil Aviation Secretary Pradeep Singh Kharola said on Tuesday. The cash-strapped airline has already suspended its international operations till April 18. Separately, the civil aviation ministry would convene meetings of representatives of airlines and airports on April 18 to discuss capacity expansion, rising airfares and other issues, said Mr Kharola.

Jet has asked for an emergency funding of Rs 400 crore from lenders. It is a commercial decision between lenders and the company, news agency ANI reported citing civil aviation secretary.

Earlier in the day, shares of the debt-laden airline plunged as much as 18.56 per cent on the BSE after it failed to secure interim funding from the group of lenders led by the State Bank of India. As part of the rescue deal signed last month with the lenders, Jet Airways was supposed to get Rs. 1,500 crore interim funding.

BSE also sought a clarification from Jet Airways after media reports suggested that Jet Airways was likely to temporally shut down its operations for which the response was awaited.

Meanwhile, Jet Airways founder Naresh Goyal decided not to bid for acquiring a stake in the cash-strapped airline. Mr Goyal along with his wife Anita had stepped down from the airline's board last month.

Jet Airways CEO Vinay Dube in a statement to employees on Monday said the interim funding from the lenders was "not forthcoming thus far" and it had to shut its international operations till Thursday.

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