The Indian Wire » Business » As SBI pumps emergency funds, Jet Airways to fly 40 more airplanes by April end

As SBI pumps emergency funds, Jet Airways to fly 40 more airplanes by April end

Beleaguered Indian airline Jet Airways apprised the Civil Aviation Ministry that it wont be grounding more planes and will be flying around 75 planes by the end of April.

Jet Airways which was in its worst financial crises and was seeking for bailout plan by SBI led bankers consortium, two days back it got emergency funding of ₹1,500 crore by SBI led lenders’ consortium and its founder Naresh Goyal also resigned from the managing board and Chairman post.

Following this the airline’s management, led by Chief Executive Officer Vinay Dube, Deputy Chief Executive Amit Agarwal and SBI Chairman Rajnish Kumar, met Civil Aviation Secretary Pradeep Singh Kharola on Tuesday and informed him of the developments regarding the bailout plan, grounding of planes and other developments pertaining to airline.

“By Monday or Tuesday, Jet and the lessors should come into an agreement on getting back the grounded planes. By the end of April, Jet would be able to fly 40 more aircraft. As on today, Jet is flying 35 aircraft,” Kharola said after meeting. He also said that the aviation ministry was keeping a close watch on the developments of carrier.

Commenting on the financial problems of carrier he said that the finance related aspects of Jet Airways are handled by State Bank of India (SBI).

Also, a new interim management is formed to look after the management and cash inflows. The lenders are optimistic about finding new investors by May end and and along with other members of management are working to revive the operations.

Jet Airways has a debt of about ₹8000 crore and the rising debt led to the grounding of majority of its fleet but after the emergency funding by SBI led lenders consortium situation seems to be improving soon and carrier might operate to its full efficiency in the next few months.

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