Interim funding not forthcoming, board to meet on Tuesday: Jet Airways

NEW DELHI: Jet Airways is now staring at a possible shutdown, which could be temporary in best case scenario, as the airline did not get the promised emergency funding from lenders on Monday. The airline’s board will meet on Tuesday morning to see what to do now in the absence of the funds that were required to keep operating.

Jet CEO Vinay Dube wrote to employees on Monday evening after meeting lenders: “As you are aware, we have been working with the lenders to secure interim funding for our operations. The interim funding has not been forthcoming thus far, and as a result of this we have extended cancellation of international operations through Thursday.”

“Please note that the current status of our engagement with the lenders and other related matters shall be placed before the Board in the meeting scheduled for tomorrow morning, where the management will seek guidance from the Board on the next steps forward. We will keep you updated on all critical developments,” Dube’s mail said.

The airline had met lenders last Friday who asked Jet to submit a fresh plan for seeking emergency funds. In this interim period, that is last weekend till Monday, the airline was supposed to fly ATRs and one or two Boeing 737s. The airline had hoped to receive some funds on Monday evening as that would have allowed for clearance of salaries and a possible increase in its operational fleet. But with no funding on Monday, the airline faces a bleak future.

Jet’s comments were awaited on future course of action at the time of filing this story.