Published: Wed, April 17, 2019
Business | By Eloise Houston

Jet Airways pilots body defers `no flying` call ahead of lenders meet

Jet Airways pilots body defers `no flying` call ahead of lenders meet

This week, it reduced its operations to only seven aircraft flying domestic routes.

The pilots, along with engineers and senior management, have not received salaries since January.

Two NAG members said that since media reports indicated that the State Bank of India had sought an operational plan from the management, the pilots were hoping that once this was done some funds would be released.

Hours after deferring their no-fly call, Jet Airways' pilots Monday appealed to the State Bank of India (SBI) to release Rs 1,500 crore proposed to be infused in the beleaguered airline as a part of its debt-restructuring plan last month.

"Jet Airways has now suspended operations to the SAARC and Asean destinations, as well as to Toronto and Paris from Chennai and back", Jet Airways said in a statement.

Earlier in the day, the guild, which has around 1,100 pilots as its members, made a decision to stop flying from 15 April in protest against non-payment of salaries since March.

"In parallel, the airline's management and its key stakeholders including its consortium of lenders, continue to work closely towards resolving the current situation".

Around the same time, the company announced it was low on working capital.

SBI-led consortium has taken over the debt-ridden airlines in March after chairman and founder Naresh Goyal quit the airlines.

Last month, Goyal and his wife Anita Goyal stepped down from the board of the airline, which has more than Rs 8,000 crore debt. The pilots, engineers and cabin crew of the airlines assembled at the headquarters on Monday morning to show their solidarity.

Last week Thursday Jet Airways reportedly grounded another 10 planes due to unpaid leasing fees.

In March, a consortium of lenders led by SBI took control over the management and it was chose to infuse Rs 1,500 crore into the carrier to keep it going till an investor is found.

Jet Airways confirmed stopping of bookings for these flights, saying the move is aimed at re-accommodating passengers due to interim cancellations.

Founded in 1974, Jet Air was a powerful General Sales Agents (GSA) that represented as many as 17 global airlines before it spawned Jet Airways in the 1990s.

A consortium of USA firm and Jet Airways founder Naresh Goyal's Jetair has reportedly submitted the expression of interest (EoI) for acquiring a stake in the ailing airline with the backing of a London company.

Like this: