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Troubled Jet Airways lenders to decide on emergency funds

17 April 2019

The decision on the quantum of funds to be infused immediately to avert a possible shut down is to be reportedly decided on Monday after a meeting between the management and lenders.

As many as 1,000 pilots of the union, National Aviator's Guild (NAG), will meet on Monday morning to decide on whether the pilots will fly or not, due to non-payment of salaries. Its employees are expecting to be paid their pending salaries once the fresh funding comes through.

"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.

Hundreds of Jet Airways pilots gathered outside the airlines' headquarter at Siroya Centre in Mumbai today demanding their unpaid salaries.

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

Not only the airline but also the journey over the past four-five months have been extremely hard for ground staff at the airline, they have been humiliated by passengers over the cancellation of flights besides facing financial hurdles.

The airline will create appropriate security over the company's assets for securing the existing facilities extended by the lenders and the proposed immediate funding support of up to Rs 1,500 crore by way of an appropriate debt instrument.

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It is learnt that the lenders are willing to infuse Rs 20 crore daily till May 7 as they expect the new investor to take control of the airline on the date and the remaining legalities and all other steps of the stake sale process can then be completed by May 31.

According to the NAG, it has also called upon other departments to join the gathering at the headquarters as a show of unity.

However, in a communication to its members, the pilots body announced postponement of its "no pay no work" call for the second time in less than two weeks, saying it wanted to give more time to the company which is struggling to survive due to a severe paucity of cash.

Jet Airways Aircraft Maintenance Engineers' Association (JAMEWA) said that it had no plans of going on strike.

Flights to and from London and Amsterdam would be "cancelled" until at least Tuesday, according to the statement, quoted by the Press Trust of India news agency.

Jet's fleet has been cut from 120 in January to just seven planes.

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.

Troubled Jet Airways lenders to decide on emergency funds