Jet Airways suspends Singapore flights; airline’s fleet now down to 14 aircraft

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Published: April 11, 2019 4:53:24 PM

Jet Airways’ former chairman today said that he has announced a 26% stake in the airline as security for Punjab National Bank loans, per regulatory filing.

jet airways flight number reduces employess ask to pay salaryJet Airways’ former chairman today said that he has pledged 26% stake in the airline.

Debt-ridden Jet Airways has slipped into further trouble with its Singapore flights indefinitely suspended amid the ongoing cash crunch and a paucity of money to pay dues to aircraft lessors, Singapore’s Changi Airport said in a tweet. Further, cash-strapped Jet Airways fleet is also down to 14 flying aircraft from as high as 119 earlier, CNBC TV18 reported. Financial Express Online has sent queries to Jet Airways about the same.

Jet Airways’ former chairman today said that he has pledged 26% stake in the airline as security with the Punjab National Bank against loans. This is about 2.95 crore shares. The pledge was submitted on 4 April as “security for existing/ new borrowings taken by Jet Airways (India) Ltd,” Jet Airways said in a BSE filing.

Amid continuous flight groundings, Indian Oil Corporation (IOC) had previously cut Jet Airways’ fuel supply due to non-payment of dues. The troubled airline was then operating 26 aircraft, about one-fifth of its original fleet which is now reduced to 14.

Earlier, Naresh Goyal and his wife Anita Goyal had stepped down from the board of directors following the pressure of resolution. Goyal will lose out on his majority stake of 51% once the resolution plan for cash-strapped airline kicks in following which, his shares will be down to 25% and Etihad’s shares will be down to 12%.

Also, the State Bank of India (SBI)-led consortium of lenders is expected to take reins of Jet Airways after the resolution plan is effective. The lenders to the airline will infuse Rs 1,500 crore in Jet Airways for the majority control in the airline. Bankers have invited bids from investors to buy stakes in Jet Airways and infuse money into the airline. However, yesterday, the deadline for initial bids submission was extended to 12 April 2019 as there was reportedly low interest on the part of investors to get stakes in the troubled airline. The earlier deadline was of 10 April.

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