Lenders Not Willing To Support Cash Strapped Jet Airways

According to sources, Jet Airways wasn’t able to make its creditors provide emergency funds. Jet Airways had to cancel every other International flight and it has put a hold on its flights till April 18, 2019. Once, Jet Airways used to acquire a considerable consumer market share in India. Many creditors of the airlines had ceased its aircraft and at present, it is left with seven operating panes.

At present, the airline has to pay a debt of around $1.2 billion. Due to the failure to provide services on a daily basis, many of its passengers have to face problems. Through a letter to the staff of Jet Airways Vinay Dube stated that at present the firm hasn’t got any proper funding.

Previously, Jet Airways used to operate on several domestic and international routes. Pilots, ground staff members, and engineers hadn’t been paid since December 2018. The staff also informed reporters that they would go on a strike if they didn’t get emergency funds on behalf of the airlines.

In an unprecedented event, the government had asked public financial firms to provide aid to Jet Airways. Few analysts are relating the present endeavor of the government with the ongoing elections in some states. In March, SBI has undertaken an initiative to provide genuine help to the airlines.

Naresh Goyal had founded Jet Airways, more than two decades ago. At present, he owns 52% shares of the company. Etihad Airways has 24% shares of Jet Airways and one of the spokesperson has showcased interest in owning more shares of the company.

According to an analysis report, Jet Airways requires around $3 million on a daily basis for proper operations. Many analysts also believe that the company may even go bankrupt if it continues to operate in a similar fashion. Analysts also believe that the Jet Airways need to get immediate funding for proper business succession. Recently, Naresh Goyal has resigned from the post of Chairman which had even escalated the chaos among the employees.

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