Thursday, March 28, 2024
HomeNEWSAIRLINESJet Airways’ future in doubt

Jet Airways’ future in doubt

-

BANGKOK, 22 April 2019: Talks continue on a possible rescue package for grounded Jet Airways, but until a miracle materialises, the Indian airline grounded all flights and IATA froze clearinghouse payments.

At the weekend, media reports confirmed Indian banks were looking for fresh investors prepared to buy a 75% stake in the airline and underwrite the high cost of reviving operations.

Suspension of membership in IATA’s bank settlement plan that streamlines fare payments between travel agents and airlines was described as a temporary measure.

The airline suspended all flights both domestic and international 17 April after 25 years of flying.

Founder and former chairman, Naresh Goyal, apologised to passengers and staff for not being able to secure interim emergency funding but held out hope that Indian lenders might deliver a financial bailout.

Struggling for months to raise funds to keep flying the airline has also defaulted on salaries due to more than 20,000 staff worldwide.

It succumbed to the inevitable late last week forced to ground its entire fleet. It’s the largest collapse of an Indian airline since Kingfisher closed shop in 2012.

Founded in the late 1990s, Jet Airways flew around 20% of all the domestic passengers by 2018.

Banks and Indian lender have declined to inject new capital into the airline and are now hoping to off-load a 75% stake in the airline through a bidding process due to expire 10 May.

Since, 2013, Eithad Airlines has held a 24% stake in the Indian airline but has not indicated any interest in increasing equity.  It has offered to fly stranded Jet Airways customers home.

In Asia, the worst hit destinations are Singapore, Kuala Lumpur and Bangkok with hundreds of Indian families either stranded or having to begin the long process of seeking refunds on cancelled services.

Bangkok Airways remains the codeshare partner of Jet Airways for flights beyond Bangkok to neighbouring countries in Southeast Asia, while Etihad has a similar codeshare deal on flights to the Middle East and Europe. 

Must Read

International buyers splurge on Phuket homes

0
PHUKET, 28 March 2024: Phuket has seen an unprecedented invasion of international buyers, transforming the island into the world's largest leisure-branded residential real estate...