Jet Airways shuts down operations for now

The Hush Post | 16:25 | Two-minute read

The cash-strapped Jet Airways proposed to suspend all its operations temporarily. According to the ET Now news report, the decision to call off the operations was taken at its board meeting on Tuesday.

Jet Airways founder Naresh Goyal who had stepped down as chairman of the airline last month decided not to bid for acquiring stake in the carrier.

Earlier, some news reports said that lenders did not take a final decision on providing emergency funds to the debt-ridden carrier. In March, Goyal and his wife Anita Goyal stepped down from the board of the airline which has more than Rs 8,000 crore debt.

Amid reports of temporarily shut down of operations, shares of Jet Airways dipped nearly 19 per cent on Tuesday. The scrip which had opened the day on a weak note further dipped 18.56 per cent to Rs 213.20 on BSE in afternoon trade, while at NSE, shares cracked 18.53 per cent to Rs 213.20.

SBI Capital Markets has the mandate for Jet Airways’ sale on behalf of the SBI-led consortium of the domestic lenders to the debt-ridden private carrier.

The carrier is grappling with acute financial crunch and is operating less than 10 planes besides temporarily suspending international operations. It is awaiting fresh fund infusion under a debt resolution plan.

Earlier, there were reports that the management will take a final call be end of Tuesday of whether to continue operations as the airline makes last-ditch efforts to raise funds.

On the other hand, Civil Aviation Minister Suresh Prabhu has called for a review of issues related to the struggling Jet Airways, including rising fares and flight cancellations. Prabhu has also asked Civil Aviation Secretary Pradeep Singh Kharola to take necessary steps to protect the rights and safety of passengers.

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