India Post News Paper

 Breaking News

Lenders hopeful of successful bids for grounded Jet Airways

Lenders hopeful of successful bids for grounded Jet Airways
April 18
16:28 2019

NEW DELHI: A day after Jet Airways suspended all its flights after running out of money, lenders to the carrier Thursday said they were “reasonably hopeful” that bidding process for the airline will end successfully.

Lenders led by the State Bank of India had declined to extend more funds to Jet, forcing it to suspend all its flights.

“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 the 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.

Jet had been, over the last few months, on a decline as competition from budget airlines hurt its profitability and led to a debt pile. 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”.

“Tuesday night, we were informed by SBI, on behalf of the consortium of Indian lenders, that they are unable to consider our request for interim funding. Since no emergency funding from the lenders or any other source of funding was forthcoming, it would therefore not have been possible for us to pay for fuel or other critical services to keep the operations going,” he wrote.

He said the airline had over the last several weeks and months tried “every means possible” to seek funding, both interim as well as long term funding, to keep our operations going. “Unfortunately, despite the very best of our efforts, we have been left with no other choice today”.

“A decision like this is never easy to make, but without the interim funding, which we have been repeatedly requesting for, we are simply unable to conduct flight operations in a manner that delivers to the very reasonable expectations of our guests, employees, partners and service providers,” he wrote.

“After 25 years of sharing the Joy of Flying with Indian and international guests, Jet Airways and its Board of Directors have been forced to take this extreme measure, as prolonged and sustained efforts with lenders and authorities to ensure the sustainability of the airline did not yield the desired results.”

He, however, said the future provides new hope and opportunity as India is better off with a flying Jet Airways.

“We will now await the bid finalization process by SBI and the consortium of Indian lenders and will continue to support the bid process initiated by the lenders,” he added.

Passengers who had booked on Jet for travel on future dates will get a refund. “We sincerely and profusely apologise for the disruption to your travel plans. We would like to thank you for your continued patronage, support and loyalty over the years. We are hopeful that we will be able to bring the Joy of Flying back to you soon,” he added. PTI

Comments

comments

Related Articles

    Polls

    Should americans stop buying China-Made products?

    Loading ... Loading ...

    E-paper Latest Edition

    ADVERTISEMENT – DAFABET ESPORTS

    Dafabet Gaming Portal

    ADVERTISEMENT – NRIA NET

    www.nria.net

    ADVERTISEMENT – DR HORTON

    Dr Horton Skyline Ridge

    ADVERTISEMENT – SEVEN JACKPOTS

    casino

    ADVERTISEMENT – BETRALLY INDIA

    betting India

    ADVERTISEMENT – DR HORTON

    ADVERTISEMENT – Star Tours

    Star Tours

    50 SPIRITUAL APPETIZERS – VINOD DHAWAN

    50-ad-Indiapost

    It’s a lovely book. It feels energetically clear and light. It’s easy to read, dip in and out and most importantly it offers information without fluff! Blessings on this project.

    Jac O’Keeffe
    Spirituality teacher based in USA.

    *Available on Amazon, Flipkart & other online stores*

    ADVERTISEMENT – JOBSORA- FIND A JOB NOW!

    Jobsora Jobs

    Follow us On Twitter

    RT @amnesty: China, Stop the crackdown on freedoms in Hong Kong. Stop the crackdown on freedoms in Hong Kong. Stop the crackdown on freedo…
    h J R
    RT @ANI: Vijay Mallya last month lost his appeal against extradition, and was refused leave to appeal further to the UK Supreme Court. Howe…
    h J R
    Hindi Club of #Illinois launches Pratibha Manch - https://t.co/JeBLGP3801 Get your news featured use #IndiaPostUSA… https://t.co/nLc54CWjlm
    h J R
    A Global Book Phenomenon, Ancient Secrets of a ... - https://t.co/sfH82tKrbI Get your news featured use… https://t.co/xrVJBc06J3
    h J R

    POPULAR CATEGORIES

    Download Media Kit

    India Post Media Kit