Jet Airways is in talks with the International Air Transport Association (IATA) to clear some refunds from the money lying in the billing and settlement plan (BSP) account. The global lobbying body on Thursday suspended all ticketing activities and transactions of Jet Airways via its clearing house. This means travel agents would immediately suspend all ticketing activities on behalf of Jet Airways including the use of all automated systems for processing of refunds or other credit/debit transactions on behalf of the airline. Thousands of passengers whose tickets have been cancelled will have to wait indefinitely for refunds.
More than a day after Jet Airways announced that it would temporarily cease operations from April 17 amid a severe fund crunch, passengers across the globe have been left in the lurch. The sudden grounding of Jet Airways has hit budget travellers the most because there is no clarity on when the refund would be processed and there is also a spike in air fares. The 15-day advance fares have gone up by 5-10% while three-day advance fare levels have shot up by 25-30%.
National carrier Air India on April 18 offered special fares to stranded international passengers hit by the abrupt grounding of Jet Airways. The "special stranded" fares have been offered to passengers at overseas airports such as Paris, London Heathrow, Singapore, Dubai, Hong Kong, Abu Dhabi, Jeddah, Dammam, and Muscat, among others. Passengers holding confirmed RT tickets on Jet Airways will be allowed to avail special stranded passenger fares from the destinations common with Air India.
Shares of SpiceJet today surged 15% to touch a fresh 52-week high of Rs 152. Meanwhile, Jet Airways shares fell as much as 34% after it shut down all flight operations indefinitely. SpiceJet today said it will induct six more Boeing 737-800 NG aircraft on dry lease. The total number of planes SpiceJet plans to induct in the immediate future now stands at 27. The airline has applied to the DGCA for a no-objection certificate (NOC) to import the planes.
Jet Airways will temporarily halt all domestic and international operations from April 17 onward after banks rejected the debt-laden carrier's request for emergency funding. The cash-strapped airline has shut down operations with immediate effect since it will not be able to pay for fuel or other critical services to keep the operations going. The lenders, led by SBI, were originally expected to transfer Rs 1,500 crore but some lenders are not willing to infuse any fresh funding in the struggling airline. Jet has a debt of over Rs 8000 crore.
Shares of Jet Airways tanked 10% in Tuesday’s trade after the management reportedly proposed complete suspension of operations, due to lack of any financial assistance in sight from the lenders. The scrip closed 6.57% lower at Rs 244.60 on BSE. Currently the Jet is operating seven planes and paying fuel companies on a daily basis to operate flights. Jet lenders have demanded more pledged shares of founder Naresh Goyal as collateral for advancing further loans.
The US Exim Bank has recalled all loans extended to Jet Airways for buying Boeing aircraft and is likely to take the possession of these aircraft, thus, taking away all the long-haul Boeing 777 aircraft that the airline owns. Sources said that the amount of loan is about Rs 2,000 crore and the Bank is soon going to initiate the process of possessing the aircraft.
Etihad Airways, National Investment and Infrastructure Fund (NIIF) and private equity firms TPG Capital and Indigo Partners have been shortlisted on Monday by lenders to Jet Airways to place binding bids for cash-strapped airline. There was no clarity on the eligibility of founder Naresh Goyal to bid for a stake in Jet Airways. The final decision on Goyal's eligibility is expected to be announced on Tuesday and the lenders to the airline will also declare the names of all eligible bidders.
Lenders to Jet Airways (India) Ltd are unlikely to consider an initial bid from founder Naresh Goyal. Goyal was allowed to submit an expression of interest (EoI) on the condition that he bid as part of a consortium with other investors where he would hold a minority stake. Those conditions have not been met in his bid submitted on Friday. A final decision on the bid would be conveyed to Goyal after considering legal opinion, they said.
Jet Airways pilots body, the National Aviator's Guild (NAG), on Monday appealed the SBI to release Rs 1,500 crore, which was proposed to be infused in the ailing carrier as part of a debt-restructuring plan last month. The cash-strapped airline is operating just 6-7 planes, with almost its entire fleet being grounded due to non-payment of rentals to lessors. The Guild also appealed Prime Minister Narendra Modi to save 20,000 odd jobs at the airline. Jet Airways's pilots along with engineers and senior staff were last paid for December, 2018.
Low-cost carrier Spice Jet is now hiring engineers and pilots from Jet Airways at much lower pay than their current salaries at the financially troubled Jet. Pilots from Jet Airways are being reportedly asked to take salary cuts of 25-30% while engineers have been advised to settle at 50% of their current pay package. Not long ago, many airlines including Spice Jet were luring the same pilots and engineers with joining bonuses and better perks.
Jet Airways founder Naresh Goyal has reportedly put in bid for buying stake in the ailing airline, sources said. Goyal quit as chairman of the carrier last month under a debt resolution plan which allowed the lenders taking control of the airline. However, it couldn't be immediately ascertained whether he has partnered with any entity for the bid. Friday was the last date for initial bids set by SBI Capital Markets.
At least six investors have expressed early interest in the struggling Jet Airways (India) Ltd. The deadline to submit bids ended on April 12. Existing investor Etihad Airways, TPG Capital, Indigo Partners and National Infrastructure Investment Fund (NIIF) have submitted their expressions of interest to SBI Capital Markets. Jet Airways promoter Naresh Goyal didn’t submit a formal interest. Goyal, on Thursday, had pledged 26 stake in the airline to Punjab National Bankto raise loans worth Rs 1,500 crore for Jet.
The Prime Minister's Office (PMO) has called an urgent meeting to discuss the crisis in Jet Airways (India) Ltd., which is facing acute financial woes. The meeting has been reportedly called after Civil Aviation Minister Suresh Prabhu asked the secretary of the department to review issues concerning Jet Airways. Crisis-hit Jet Airways is facing acute financial crunch and has grounded several of its flights and stopped international operations.
Cash-strapped Jet Airways will fly six to seven aircraft on both days this weekend on domestic routes, Aviation Secretary P S Kharola said on Friday. Currently, Jet Airways is operating less than 50 domestic flights per day. Jet has also been told to take passenger issues in consideration and alert passengers about flight cancellations 48 hours in advance.