Jet pleads SBI for urgent funding to stay afloat
Tuesday - April 16, 2019 11:22 pm , Category : BUSINESS
New Delhi, April 16 (IANS) Crisis-hit Jet Airways on Tuesday made another plea to its lead lender State Bank of India (SBI) for urgent release of funds to avoid shutdown of operations.Jet Airways has been awaiting Rs 1,500 crore interim funding from banks. The airline's management has reportedly asked the bank to at least release Rs 400 crore, but could not get any firm assurance. This has forced it to further extend the suspension of international operations.In a late evening letter to employees, CEO Vinay Dube said the airline had highlighted specific areas that would be immediately impacted if the funding was not provided. "Please be assured that we continue to work proactively with the Indian lenders to provide all the support that may be required to help us resurrect Jet Airways, including working closely with the potential parties that are keen on bidding for the airline," the CEO wrote. According to the Civil Aviation Secretary Pradeep Singh Kharola, the airline on Tuesday operated only five aircraft, down from seven on Monday. Under the current regulations, the airline is required to operate five aircraft to save its air operating permit.The development assumes significance as the airline has almost run out of funds to pay for fuel and other operational expenses.Industry insiders say without extra funds, the airline might have to temporarily suspend operations. It has folded up most of its operations due to grounding of over 80 per cent of its fleet by lessors.