Bankers have confirmed that there’s no money coming in for now
Jet Airways executives are meeting in Mumbai Tuesday to take a call on complete halt of operations
Mumbai: Lenders to Jet Airways (India) Ltd have refused funding to the cash-strapped carrier, according to people familiar with the situation, forcing the nation’s oldest surviving private airline to consider a temporary shutdown.
Bankers have confirmed that there’s no money coming in for now, the people said asking not to be identified as the matter is not public.
Jet Airways, which broke into the monopoly of state-run Air India Ltd in the early 1990s, went in a tailspin after a slew of budget airlines started offering ultra-low fares which hurt its profits and led to a mountain of debt over the past decade. It’s now burdened with more than $1 billion in debt and unpaid dues to its employees and leasing firms.
Jet Airways’ crisis also comes at an awkward time for Prime Minister Narendra Modi who’s battling a slide in popularity over rising concerns of unemployment and seeking a re-election bid in 2019 Lok Sabha elections. The government had tried to help the ailing Jet Airways by asking other carriers to consider taking over a few of its aircraft.
Bloomberg's Debjit Chakraborty contributed to this story.
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