Skip to content
Search

Latest Stories

Submit Guest Post

India to investigate Jet Airways as it fights for survival

THE Indian government said today (12) it would investigate Jet Airways' ability to keep flying as the debt-stricken carrier fights for survival.

The announcement came after Jet cancelled most of its international flights yesterday (11) and as lenders desperately seek a buyer to keep the beleaguered airline running.


A collapse would deal a blow to prime minister Narendra Modi's pro-business reputation as Indians vote in a mega six-week-long election that started on Thursday (11).

Aviation minister Suresh Prabhu tweeted that his ministry would "review issues related to Jet Airways" and "take necessary steps to minimise passenger inconvenience and ensure their safety".

Jet was until recently India's second-biggest airline by market share but is close to going under with debts of more than $1 billion (£765.61 million).

The Mumbai-based carrier has been forced to ground the majority of its fleet after months of defaulting on loans and struggling to pay lessors and staff.

It told the Bombay Stock Exchange yesterday (11) that it had grounded 10 more planes due to non-payment.

The airline is believed to now be operating just 16 planes out of a fleet of 119. That is below the 20 required by Indian aviation regulators to fly overseas.

Thousands of customers have been stranded in recent weeks after hundreds of flights were cancelled, in some cases with little or no notice.

All of Jet's long-haul flights were cancelled on Thursday (11), including to London, Paris and Amsterdam. They were due to run later on Friday.

Thursday (11) and Friday (12) services to Colombo and Singapore were also cancelled.

Close of play Friday (12) is the deadline for prospective bidders to express an interest in acquiring a 75-per cent stake in the airline.

A consortium of lenders led by the State Bank of India started the stake sale process this week. Any interested parties will then have until April 30 to make a formal bid.

Several airlines, including Etihad, are interested in bidding according to reports.

The consortium took control of Jet Airways last month after creditors injected £166.90m ($218m) of "immediate funding support" as part of a debt resolution plan.

The deal saw founder Naresh Goyal step down as chairman.

Etihad Airways, which owns a 24-per cent stake in Jet, has submitted an expression of interest to buy a controlling stake of up to 75 per cent, according to Indian business dailies.

Goyal has also not given up hope of retaking control of the airline, papers say, although it is unclear that he would be able to put the necessary funds together.

(AFP)

Add EasternEye As Your Trusted Source
preferred source on google news

More For You

Oil prices

Hopes of peace in the Gulf sent oil prices lower and global markets higher

iStock

Oil prices hit three-month low as shares rally on Hormuz reopening hopes

  • Brent crude fell more than 4 per cent after the US and Iran announced a framework agreement.
  • The Strait of Hormuz, a key route for global energy supplies, could reopen within weeks.
  • Asian and European stock markets climbed as investors priced in easing geopolitical risks.

Oil prices dropped sharply while stock markets surged after the US and Iran said they had reached a framework agreement that could bring an end to months of conflict and pave the way for the reopening of the Strait of Hormuz.

The development immediately rippled through global energy markets, with Brent crude prices and the Strait of Hormuz once again becoming the focus of investors. The waterway, which handles around 20 per cent of the world's oil and liquefied natural gas shipments, has remained effectively shut since hostilities escalated following US and Israeli strikes on Iran on February 28.

Keep ReadingShow less