Banks are continuing to fund the troubled Jet Airways, which is why the airline is still flying.
“The objective is to keep the value intact,” said a banking source on Tuesday, indicating that a loss of value, in case the airline is grounded, will be detrimental for the auction process now under way.
“Discussions for reviving the airline are under way and nothing has been finalised as of now. SBI Capital Markets is working on the revival package for Jet Airways,” PNB MD & CEO Sunil Mehta told reporters in Delhi.
During the day as some media outlets reported that the airline would announce a temporary shutdown, its stock plunged 17% during intra day trade before finally closing with a loss of 7.62% at ₹241.85 on the BSE.
The company is in constant engagement with the Directorate General of Civil Aviation and Ministry of Civil Aviation, to keep the airline flying, Jet’s board of directors said on Tuesday. Contrary to media reports, Jet has decided to continue its already curtailed domestic operations despite the precarious financial condition.
Later in a letter to employees, CEO Vinay Dube informed them of the company’s efforts to secure emergency funding from lenders.It is operating six planes in the domestic sector to ensure that its flying permit is not cancelled.
But a decision has been made to suspend the international operations till April 22, 2019. The international operations which were initially suspended till April 15 were extended till April 19, 2019.