Jet Airways stops all flights on international routes

_A Monitor Report16 Apr, 2019 | 336 Views|-+
Dhaka : Jet Airways suspended operations on all international routes. As a result, passengers are stranded in India and around the world.

Flights from London, Paris and Amster-dam are among those grounded amid fears about the survival of India's largest private airline.

The airline cancelled all international flights until April 15, when, according to reports, it was scheduled to meet lenders again in an attempted to secure funding.

Jet Airways is saddled with more than USD1bn of debt.

It is seeking a financial lifeline to avoid collapse and, on Thursday, April 11, grounded 10 planes over unpaid fees to leasing firms.

These were the latest flights to be grounded and local reports suggested that barely a dozen among 100 planes of its fleet was in operation.

The airline flies on 600 domestic and 380 international routes - but carriers in India must maintain a fleet of least 20 aircraft to continue to operate international services.

From London, the airline initially confirmed it had cancelled its flights between London, Paris and Amsterdam and India for April 12, but later said that all international flights would be cancelled between 12 and 15 April.

The airline said it "regrets the inconvenience caused" to its passengers and was "working to minimise guest inconvenience".

"In parallel, the airline's management and its key stakeholders including its consortium of lenders, continue to work closely towards resolving the current situation," a spokesperson from Jet Airways added.

Etihad shows interest

Etihad Airways is the latest player to enter the race to acquire a stake in debt-laden Jet Airways, with the Abu Dhabi-based airline submitting the Expression of Interest (EOI) on April 11.

Etihad Airways already holds 24 per cent stake in the airline, and may look to take its holding up to 49 per cent, sources said.

The total number of bids received so far stands at five. National Investment and Infrastructure Fund (NIIF), TPG Capital, Indigo Partners and a consortium of Think Equity-Redcliffe Capital have already submitted EOIs for Jet.

Naresh Goyal, who recently stepped down as Chairman of the airline, may also throw his hat in the ring and could submit a bid with another partner.

Banks are scrutinising the EOIs to see if they meet the criteria, and are qualified to submit bids. Only qualified bidders will be allowed to submit binding bids by April 30, added the sources.

Canadian airline Air Canada also remains in talks with lenders for a potential bid but has sought more time from banks for submission of EOI.

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