Jet Airways Management Proposes A Temporary Shutdown; Shares Fall By 18.3 Per Cent To Their Lowest Level Since 2015

Jet Airways’ management has proposed a temporary shutdown of the beleaguered airline while the firm awaits a fresh infusion of funds from lenders, reports Mint.

A State Bank of India (SBI)-led consortium of lenders recently took over the airline’s board after its founder, and chairman Naresh Goyal was forced to resign on account of deteriorating financial situation of the company.

Jet Airways, based out Mumbai has been saddled with over Rs 8,620 crore of debt as on 30 June 2018. It also reported its second consecutive quarterly loss of over Rs 1,300 crore in 2018. In January the company defaulted on its loan repayments.

Shares of the company fell by as much as 18.3 per cent to their lowest level since 2015 in the aftermath of media reports of a temporary shutdown.

Despite a marathon meeting held on Monday (15 April), the consortium of banks was unable to reach a consensus on releasing interim emergency funds to the airline.

Delayed Salaries

Due to inadequate funds, the airline has not paid pending salaries of disgruntled employees and has been forced to ground most of its planes. Once the rising star of India’s aviation sector, Jet now operates a paltry seven planes, down from 123 in December. Pilots along with engineers and senior staff of the airline were last paid for December 2018.

Also Read: Jet In 2018 Is No Better Than Kingfisher In 2011; Writing On The Wall For Naresh Goyal Is Clear