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| Jet Airways grounds ops temporarily; Secy calls urgent meeting |
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Mumbai/New Delhi: Cash-strapped airline Jet Airways on Wednesday announced temporary suspension of its flight operations after the SBI and other lenders showed inability in releasing the immediate funds to the carrier. The airline has informed the Civil Aviation Ministry about the suspension of the operations and the aviation regulator DGCA is monitoring the situation.
Meanwhile, Civil Aviation Secretary Pradeep Singh Kharola called a meeting with airlines and airports staff to address any emerging issue on capacity, slots and passenger convinence. The Jet Airways said they are compelled to cancel all its international and domestic flights. The last flight will operate today, the airline said in a statement. It said late last night, the Jet Airways was informed by the State Bank of India, on behalf of the consortium of Indian lenders, that they are unable to consider its request for critical interim funding.
''''Since no emergency funding from the lenders or any other source is forthcoming, the airline will not be able to pay for fuel or other critical services to keep the operations going,'''' it said. The Jet Airways has also informed the DGCA and the Ministries of Civil Aviation and Finance and other relevant government institutions, of this course of action.
The debt-ridden carrier will now await the bid finalisation process by SBI-led consortium by May 10. Meanwhile, the Civial Aviation Ministry said the Jet Airlines has informed it about temporarily ceasing operations. ?Jet Airways has informed MoCA that it is temporarily ceasing operations. The bank-led resolution process is still underway and expected to end by May 10. During this time, MoCA will support the resolution process within the existing legal and regulatory framework,? the Ministry tweeted.
The Ministry said DGCA and other regulators are monitoring the situation carefully to ensure that all existing rules regarding refunds, cancellations, and alternate bookings are followed strictly and any passenger complaints or issues should be promptly reported to the Air Sewa portal or mobile app. Mr Kharola has also convened a meeting with airports in the first half and airlines in the second half of April 18 to coordinate and address any emerging issues on capacity, slots and passenger convenience.
The Jet Airways has been facing a mounting debt of more than Rs 8,000 crore. On March 25, the airline''s Board Meet has decided to infuse a capital of Rs 1500 crore immediately to put the carrier on the road map of recovery. Yesterday, in the Board meeting of airline with the lenders, the SBI-led consortium refused to release capital liquidity in the airline.
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