New Delhi: The Directorate General of Civil Aviation (DGCA) will ask the cash-strapped Jet Airways (India) Ltd for a concrete and credible revival plan consequent to the airline’s decision to temporarily suspend all flight operations, stated news agency ANI. The decision would be taken under the relevant regulations in an attempt to restart the airline’s suspended operations.
Meanwhile, a day after Jet Airways suspended all its flights, lenders responded on Thursday that they were “reasonably hopeful” that the bidding process for the airline will end successfully. In fact, the airline suspended all its flights after the lenders led by the State Bank of India had declined to extend more funds.
“The lenders after due deliberations decided that the best way forward for the survival of Jet Airways is to get the binding bids from potential investors who have expressed EOI (Expression of Interest) and have been issued bid documents on April 16,” a statement by lenders said.
A consortium of 26 lenders, led by SBI with 51 per cent stake in the debt-trapped airline, has invited bids from potential suitors. “Lenders are reasonably hopeful that the bid process is likely to be successful in determining the fair value of the enterprise in a transparent manner,” it said. Banks on Wednesday rejected an immediate Rs 400 crore demand of Jet Airways, compelling it to ground operations. It reported losses for four straight quarters despite sales holding up.
At its peak, Jet operated 123 planes and over 600 daily flights. It was flying just seven planes on Tuesday. Its chief executive officer Vinay Dube on Wednesday wrote an email to airlines’ passengers saying “with deep sadness and with a heavy heart that we would like to share with you that, effective immediately, Jet Airways will be suspending all its domestic and international operations.”
(With agency inputs)