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Naresh Goyal pulls out of race for Jet Airways

17 April 2019

Meanwhile, the urgently-needed rescue aid from banks is still not confirmed as lenders can not agree as to the best course of action. Jet has no funds to pay for its operational costs and has suspended all global flights and has a mere 7 planes are now flying out of its earlier fleet of 119.

The carrier's subsidiary JetLite (S2, Delhi Int'l) continues to operate a single jet aircraft, a B737-800 VT-SJI (msn 34399), on routes between Delhi, Mumbai Int'l, and Amritsar.

The airlines will hold a board meeting on Tuesday to chalk out future course of action after the airline failed to get emergency funding from lenders. "The interim funding has not been forthcoming thus far and as a result of which we have extended cancellation of global operations through Thursday, April 19", he wrote. Left with no cash, a seven-plane fleet and fuel to run operations only till Tuesday afternoon, the end is imminent, said sources close to the development.

Separately, ET Now reported that the Export-Import Bank of the United States (EXIM) had recalled all loans to Jet and was seeking to repossess all the planes it funded.

Jet, which also owes lessors, suppliers, pilots and oil companies, has been haemorrhaging planes in recent weeks as its lessors have scrambled to de-register and take back aircraft even as Jet's lenders have sought expressions of interest from investors interested in turning it around.

Sources in the know told India Today that the lenders are unlikely to extend any interim funding as of now - they want to weigh the seriousness of bids received for the recently-concluded stake sale before firming up any funding plans. Any buyer will need to pump in at least Rs.15,000 crores in order to revive the airline, which appears to be a steep price for an airline with numerous legacy issues of financial mismanagement, siphoning of funds, unknown liabilities and lapses in governance and regulatory compliances.

Only the shortlisted candidates will be allowed to bid, said the sources on condition of anonymity.

"Directed Secretary @MoCA_GoI to review issues related to Jet Airways, especially increasing fares, flight cancellations etc", Prabhu said in a tweet.

The full service carrier, which is now operating less than 10 aircraft, is awaiting fresh fund infusion under a debt resolution plan.

Another government official said that approaching the National Company Law Tribunal (NCLT) for Jet Airways is not an option at this stage.

Jet shares closed 8.1 percent lower at 240.50 rupees.

Naresh Goyal pulls out of race for Jet Airways