Jet Airways lenders try to calm investors, hint at a revival plan for the airline, even as share prices plummeted 19% in intraday
Funding for Jet Airways is likely to come through, says govt official, amid reports of a temporary shutdown of the airline
Mumbai/Bengaluru: The management of Jet Airways (India) Ltd has proposed a temporary shutdown of the struggling airline, Indian media reported Tuesday, as the company awaits promised funds from banks in a rescue deal.
Jet Airways is likely to temporarily shut down operations, said Indian business channel CNBC TV18, citing unnamed persons. The channel said Jet CEO Vinay Dube has been authorized by directors at a board meeting to engage with its lenders one last time, and halt operations late Tuesday, if no funds arrive.
Separately, ET Now reported Jet's management has proposed to suspend all operations as one option at Tuesday's board meeting, or alternately continue with skeletal operations with any interim funds infused by State Bank of India (SBI), which leads Jet's consortium of lenders.
Jet Airways did not immediately respond to a Reuters request for comment.
"Lenders are committed to a revival plan for Jet Airways," Punjab National Bank's managing director Sunil Mehta told media on Tuesday. "SBI is working on the emergency funding, everything is under discussion, nothing is finalised."
The airline, which over and above its bank borrowings owes money to its lessors, staff and others, has been struggling for weeks after failing to receive a stop-gap loan of about $217 million from its lenders as part of a bailout plan agreed in late March.