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.
£25 million Indian dairy investment creates 200 jobs in West Bromwich, processing 500 million litres of milk yearly.
£125 million skills and housing package trains 12,000 construction workers and delivers 1,000 affordable homes.
Total £10 billion UK-wide investment announced at summit, with West Midlands securing nearly £800 million.
Investment spurs job
The West Midlands has secured nearly £800 million in new investment, creating hundreds of employment opportunities in areas with significant south Asian populations.
The Regional Investment Summit in Birmingham on Tuesday (21) delivered £635 million in private sector investment across artificial intelligence, pharmaceuticals, dairy and property development.
The announcement marks a major economic milestone for the region, where ethnic minorities comprise over half of Birmingham’s population and 35.5 per cent of West Bromwich residents.
Building on the UK-India free trade agreement Indian parent company of Freshways will invest £25 million to build a state-of-the-art dairy processing facility in West Bromwich. The plant will create at least 200 jobs, from engineers to food safety technicians, and process 500 million litres of milk annually.
The West Bromwich facility, expected to be operational by year-end, will increase Freshways’ processing capacity by 25 per cent. Birmingham’s pharmaceutical sector received a share of £30 million Life Sciences funding, enabling Sterling Pharmaceuticals to construct a 60,000 square foot centre creating 48 jobs.
Technology firm Atos announced £10 million for AI centres, generating 50 positions across the Midlands.
Infrastructure spurs growth
Property giant Hines, partnering with Woodbourne Group, committed £400 million to the Birmingham Knowledge Quarter, whilst Blackstone pledged £200 million to modernise the National Exhibition Centre over the next decade.
The West Midlands Combined Authority unveiled a £75 million skills package training 12,000 people in construction trades over three years, alongside £40 million to deliver 1,000 social rent homes.
Earlier investments include Knighthead Capital’s £3 billion Sports Quarter project, featuring a 62,000-capacity stadium and creating 14,000 jobs. The development will generate £700 million for the regional economy.
Birmingham Airport separately announced £300 million infrastructure upgrades over four years.
West Midlands Mayor Richard Parker called the summit “a huge success”, emphasising the region’s innovation and talent.
Business Secretary Peter Kyle noted " the investments demonstrate how the government’s Industrial Strategy secures growth and creates opportunities for local communities".
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