Suresh Prabhu rules out bailout package for Jet Airways

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New Delhi | Published: November 20, 2018 4:47:03 AM

Civil aviation minister Suresh Prabhu on Monday ruled out any bailout package for the cash-strapped Jet Airways.

jet airways, jet airways debt, suresh prabhuThe civil aviation ministry has also decided not to intervene with respect to Jet Airways’ request seeking more time for making payments to airport operators.

Civil aviation minister Suresh Prabhu on Monday ruled out any bailout package for the cash-strapped Jet Airways. He said that it was for the carrier’s board and managements to ensure that it functions properly and takes appropriate measures depending on prevailing market conditions.

The civil aviation ministry has also decided not to intervene with respect to Jet Airways’ request seeking more time for making payments to airport operators, civil aviation secretary RN Choubey said. He said that the airline wanted some more lead time with regard to payments to airport operators but that was something to be done commercially between the two entities.

“That is something that they have to deal with airport operators. The ministry does not get into that. We don’t get into commercial discussions between airlines and airport operators. It is to be done commercially between the two entities,” Choubey said.

Jet has been grappling with financial woes which has resulted in the airline delaying payment of salaries to staff, including pilots. It posted a loss of `1,261 crore in the July-September quarter.

On November 13, Jet Airways said it is at various stages of discussions with multiple “interested parties” for capital infusion and partial stake sale in its loyalty programme Jet Privilege.

An AAI official said Jet Airways’ current dues are covered with security deposits but refused to disclose the amount. The airport operator had served a show-cause notice on the airline last month.

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