Lenders hopeful of successful bids for grounded Jet Airways


Team Udayavani, Apr 18, 2019, 3:02 PM IST

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.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

BJP calls Congress govt ‘laughing stock’ as ‘samosa politics’ heats up in Himachal

Chikkaballapur: Yoga teacher feigns death by holding her breath, escapes murder bid

World Bunts Summit to be held in Mumbai on December 7

SC dismisses PIL seeking CBI probe into Tirupati laddus row

Salman Khan gets another threat; message sent to Mumbai traffic police helpline

SC overrules 1967 verdict holding AMU can’t be minority institution

BJP MP Tejasvi Surya, editors of Kannada news portals booked for allegedly spreading fake news

Related Articles More

Sensex, Nifty fall over 1 pc, snap two-day rally ahead of US Fed interest rate decision

SC orders liquidation of grounded air carrier Jet Airways’ assets

Home-cooked meals become dearer in October on costlier vegetables

Sensex, Nifty surge over 1 pc on heavy buying in IT stocks as Trump set to win US polls

Das says incoming data on GDP growth mixed but positives outweigh negatives

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

Comply with order allowing minority student to attend St Stephen’s College: HC tells DU

INDIA bloc looted, destroyed Jharkhand: Dharmendra Pradhan

Gujarat family holds burial event for ‘lucky’ car; 1,500 people attend

New kind of ”Jihad” in Karnataka through Waqf Board, alleges Union Minister Pralhad Joshi

BJP calls Congress govt ‘laughing stock’ as ‘samosa politics’ heats up in Himachal

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.