Lenders of Jet Airways met on Monday but failed to reach a decision on funding the debt-ridden private carrier. Chief Executive Officer Vinay Dube said in an internal communication that the lenders were unable to decide on the emergency funding, and another meeting will be held on Tuesday, PTI reported.
He added that the airline’s international operations will remain suspended till April 18. “As you are aware, we have been working with the lenders to secure interim funding for our operations,” Dube said. “The interim funding has not been forthcoming thus far, and as a result we have extended cancellation of international operations until April 18.”
The airline had earlier cancelled its foreign operations from April 12 to April 15.
“The current status of our engagement with the lenders and other related matters shall be placed before the board tomorrow morning, where the management will seek guidance from the board on the next steps forward,” Dube added. “We will keep you updated on all critical developments.”
A body representing Jet Airways pilots had earlier on Monday appealed to Prime Minister Narendra Modi to save jobs at the airline and urged the State Bank of India to infuse the struggling carrier with Rs 1,500 crore as part of a rescue deal that was agreed upon last month.
The debt-ridden airline is operating only six to seven planes at present. Its entire fleet has been grounded after it defaulted on payments to banks, pilots and suppliers.
Meanwhile, fuel supply to the ailing airline is likely to run out on Tuesday afternoon, IANS reported citing a source in the aviation industry. “A proposal for a fresh fund infusion has been given to the lenders,” an unidentified airline official told the agency.
On Sunday, over 1,100 Jet Airways pilots, who had threatened to stop flying from Monday, said they have deferred the decision in view of the meeting between the airline management and the State Bank of India.