Govt to allot some Jet Airways slots to other airlines on temporary basis; all you need to know

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Published: April 23, 2019 3:56:51 PM

With an aim to reduce the inconvenience of passengers, the government on Monday decided to allot some slots of the beleaguered Jet Airways to other airlines.

Banks unions want lenders to offer special loans to Jet staffThe debt-ridden Jet Airways had last week suspended operations after failing to raise funds from the lenders.

With an aim to reduce the inconvenience of passengers, the government on Monday decided to allot some slots of the beleaguered Jet Airways to other airlines. However, the slots would be allotted temporarily, for a period of three months, Ministry of Civil Aviation said in a statement. The slots would be returned to the airline as and when it restarts the suspended operations, it added.

“The historic rights of Jet Airways, as per the provisions of the extant ‘MoCA guidelines for Slot Allocation’ will be protected. These slots would be made available to Jet Airways, as and when they revive their operations, as per the extant guidelines,” the Civil Aviation Ministry said.

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There were already reports that the government authorities are in the process of allocation slots vacated by the airline to other aviation players including SpiceJet, amid efforts to increase capacity to meet peak season traffic.

The debt-ridden Jet Airways had last week suspended operations after failing to raise funds from the lenders. The airlines has left nearly 20,000 employees jobless as a result.

Meanwhile, earlier last week, bank unions wrote to Prime Minister Modi asking the government to take over the reins of the debt-ridden carrier so as to secure the jobs of employees. The union requested the banking lobby to “ask member banks to device a special loan scheme to the Jet staff to help them tide over their present financial problems.”

The banks could also extend special loans to the cash-starved airline in order to disburse salaries to the, against proper collateral, the unions also demanded.

Jet Airways shares ended the day over 8 per cent down to Rs 167.55 on NSE.

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