Making it probably the smallest operating pan-India airline, debt-struck Jet Airways is currently operating on less than 15 aircraft.
Making it probably the smallest operating pan-India airline, debt-struck Jet Airways is currently operating on less than 15 aircraft, news agency PTI reported citing Civil Aviation Secretary P S Kharola. It comes a day after cash-strapped airline grounded fifteen more aircraft due to non-payment of lease rentals. The Civil Aviation Secretary said the current fleet “would be less than about 15”.
Ending December 2018, Jet Airways had 35 aircraft, down 70 per cent from its operational fleet of 119 at the end of December 2018. In the last few weeks, the airline has been grounding its planes in tranches due to non-payment of dues to the lessor.
On the issues related to funding, PTI reported secretary as saying, “The issue is between bankers and Jet management. So they are discussing with each other.” Last month, the SBI-led consortium of lenders had taken over the management of the cash-hit company, coming up with a revival plan.
On March 25, Jet Airways’ board approved a resolution plan formulated by SBI-led domestic lenders. Under the plan, lenders decided to take control of the airline and make a fund infusion of Rs 1,500 crore.
The plan also involved stepping down of its promoter-chairman Naresh Goyal and the banks providing an immediate funding of Rs 1,500 crore. An interim management committee will be formed to manage and monitor the daily operations and cash flow of the debt-struck company.
The lenders will invite expression of interest for bids by April 9 and the deadline for binding bids will be April 30, while a new investor is expected to be on board by May 31, according to the plan.