Cash-strapped Jet Airways likely to ground all its flight services
New Delhi : Facing a hard time with liquidity in cash, Jet Airways (India) Ltd is likely to suspend all its flights till it receives the "emergency liquidity support" of Rs 400 crores from a consortium of banks led by the State Bank of India.
Earlier, Civil Aviation Minister Suresh Prabhu called for an emergency meeting to review the issues related to struggling Jet Airways, hike in air fares by the other airlines and also flight cancellations.
"Directed Secretary @MoCA_GoI to review issues related to Jet Airways, especially increasing fares, flight cancellations etc," Prabhu said in a tweet.
After review, the aviation regulators have asked the other carriers to reduce their fares on the 10 routes.
In another shocker, a news report claimed that the bankers have refused to infuse any more fund in the Jet Airways.
Banks are keen and willing to help Jet Airways, provided promoters show firm commitment in infusing funds with a clear-cut roadmap, two bankers with direct knowledge of the matter said on condition of anonymity. The promoters include Etihad, which has a 24% stake in the airline.
"In fact, the government should step in to resolve the matter in a resolute manner. Instead of holding separate meetings with bankers and promoters, the government should bring all the stakeholders on the table and secure commitments from promoters. It is not difficult, as [Jet Airways founder] Naresh Goyal is already out," one of the bankers said.