Jet Airways has requested for emergency funding of Rs 400 crore from banks and the debt-ridden airline is in talks with lenders Civil Aviation Secretary Pradeep Singh Kharola said on Tuesday. He stressed that a commercial decision is yet to be reached between lenders and the airline.
Jet Airways is battling for survival and has yet to receive a loan of about Rs 1,500 crore as part of a rescue deal with government-owned lenders. The embattled airline operated 5 planes on Tuesday.
"Jet has asked for an emergency funding of RS 400 crore from lenders. Company is in talks with lenders," said Pradeep Singh Kharola, Civil Aviation Secretary.
The Directorate General of Civil Aviation (DGCA) today held a meeting with representatives of all domestic airlines, who said they have removed higher fare buckets for sale and are offering air tickets to passengers from lower buckets.
DGCA is set to meet airlines and airport operators on April 18 to review capacity and fares once again.
Jet Airways CEO Vinay Dube late on Tuesday said that the company's leadership continued its engagement with the Indian lenders (led by State Bank of India).
"Subsequent to the meeting of the Jet Airways Board of Directors held earlier today, the Company's leadership continued its engagement with the Indian lenders (led by State Bank of India)," Dube said.
"The Company, under guidance of the Board has reached out to our lead lender, State Bank of India yet again and stressed on the need for urgent funding requirements, critical to the continuation of the operations of our airline," Dube said.
In the said communication, Dube said "we have highlighted the specific areas that will be immediately impacted, should the funding not be forthcoming."
"Please be assured that we continue to work proactively with the Indian lenders to provide all the support which 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 said in his message to all employees.
Meanwhile earlier today, Asim Valiani, Senior Commander Jet Airways and vice president of Jet Airways' pilots body National Aviator's Guild (NAG) said that if sufficient funding does not pour in then operations might be suspended.
"We had a meeting with management today, they have informed us that they have not received any funding from SBI which was expected and they have also informed that if the funding comes then salaries will be part of it," said Asim Valiani.
"If the substantial funding does not come in then the operation might get suspended," he added.
"The funding has to be substantial; we cannot go on this drip funding which SBI has been given. We need more than 1000 crores," said Valiani.
NAG on Monday protested against the airlines for not giving salaries to its employees for the last three months and organised a solidarity meeting.
A consortium of lenders led by State Bank of India took over the debt-ridden airline after Founder Chairman Naresh Goyal stepped down on March 25.