Published: Wed, April 17, 2019
Markets | By Otis Pena

Naresh Goyal pulls out of race for Jet Airways

Naresh Goyal pulls out of race for Jet Airways

Shares of Jet Airways plunged almost 19 per cent on Tuesday amid reports that the company is likely to temporarily shut down its operations.

A meeting of the Jet Airways board is underway to take a final call on shutting down operations.

On Tuesday, the BSE sought clarification from Jet Airways on reports that it is likely to temporarily shut down its operations.

"The company's leadership, in consultation with its Board of Directors, is engaged with lenders in connection with the said emergency funding request to arrest the further deterioration of its services and minimise inconvenience to its guests", the airline told exchanges. The carrier said it was awaiting "emergency liquidity support" from its lenders. CNTC TV18 claims that Dube would have been authorised by the board to temporarily suspend all remaining flight operations later on April 16 if no funds arrive.

Dube, in a letter to employees late on Tuesday that was seen by Reuters, said Jet has stressed to its lenders the need for urgent funding, critical to the continuation of its operations.

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Another government official said that approaching the National Company Law Tribunal (NCLT) for Jet Airways is not an option at this stage.

A senior official at DGCA said that ticket prices on high-density routes have risen up to 30 per cent in last one month.

Jet Airways is grappling with acute financial crunch and is operating less than 10 planes besides temporarily suspending global operations till 18 April.

The board of the full service carrier, which is now operating less than 10 aircraft, is meeting in Mumbai on April 16. "SBI Capital Markets is working on the revival package for Jet Airways", Mehta told reporters here.

Following Jet Airways grounding its planes, many passengers were left stranded at the airports, who took to social media to complain.

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