SBI says not all is lost in Jet Airways; still trying to keep Naresh Goyal’s airline afloat

By: |
March 20, 2019 4:40 PM

Even as the cash-strapped airline Jet Airways continues to reel under financial crunch, SBI Chairman Rajnish Kumar said that all efforts are being made to keep the Naresh Goyal-run afloat and running, keeping IBC as the last option.

Even as media reports indicate that Etihad has decided to bow out, and is looking to sell it’s stake completely, Kumar said that the decision by Etihad is not yet conclusive. 

Even as the cash-strapped airline Jet Airways continues to reel under financial crunch, SBI Chairman Rajnish Kumar said that all efforts are being made to keep the Naresh Goyal-run afloat and running, keeping IBC as the last option. “Every effort is being made to keep the airline running. It is in the interest of the aviation sector as well as the country, that Jet Airways continues to fly,” SBI Chairman Rajnish Kumar told in a press briefing this afternoon. Even as media reports indicate that Etihad has decided to bow out, and is looking to sell it’s stake completely, Kumar said that the decision by Etihad is not yet conclusive. 

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If the partners, Etihad and the promoters cannot come to a consensus, that is not our problem. We as lenders are interested in Jet Airways. However, the dialogue with Etihad is on, and they have not conclusively decided that they will move out. They have certain conditions that the airline should be professionally managed without any interference,” he said. 

In the same address, he added that the taking the airline under IBC is the last option. “Resolution under IBC for a service airline is nearly impossible. Till such time that we believe all hope is lost, we will try and keep the airline afloat. Not all hope is lost, as on date,” noted Kumar. Kumar said that the consumer is losing out due to grounding of the airline. “Delhi and Bombay business as well as economy class fares have shot up like anything due to grounding of airlines. The sector needs competition so that the consumers’ interest in served,” he noted.

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