Jet Airways Likely to Temporarily Shut Down Operations As Lenders Fail to Approve Emergency Funds

File photo of Jet Airways.

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Mumbai: The crisis-hit Jet Airways is likely to temporarily shut down its operations as the lenders have failed to approve emergency funding, sources familiar with the matter told CNBC-TV18 on Tuesday.

Sources have also said that former Chairman Naresh Goyal has withdrawn from making a bid for a stake in the company.

The board of directors of the debt-ridden airline met on Tuesday to discuss the future course of action after a promised Rs 1,500 crore find infusion was not released by the lenders despite several meetings. The latest meeting with lenders on Monday too remained inconclusive.

With the delay in fund infusion, Jet’s operations have been shrinking. Jet Airways is looking for urgent liquidity infusion to pay its pilots, engineers and make payments to its lessors.
Once India’s largest airline with a fleet of 123 aircraft, Jet Airways has now been reduced to a meagre seven-plane operation as losses crossed over Rs 8,000 crore.

SBI Capital Markets has the mandate for Jet Airways’ sale on behalf of the SBI-led consortium of the domestic lenders to the cash-strapped private carrier.

Last month, Naresh Goyal and his wife Anita Goyal stepped down from the board of the airline, which has more than Rs 8,000 crore debt

This is a developing story. More details are awaited.