Jet Airways Crisis: Indian Government Urges Banks to Save Airline | India News



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The Indian government has called for an emergency meeting while the money is running out of money Jet Airways has plunged into a deeper crisis, angry pbadengers demanding reimbursements and pilots threatening to go on strike for unpaid wages.

The Indian Minister of Civil Aviation, Suresh Prabhu, has asked his officials to convene a meeting to discuss the grounding of flights, advance bookings, cancellations, refunds and any other security issues potential at the oldest private airline in India.

With a debt of more than $ 1 billion, Jet struggles to stay alive. He delayed payments to banks, suppliers, pilots and lessors, some of whom began canceling their leases with the airlines.

The groundings forced Jet to cancel hundreds of flights, some at the last minute, leaving the pbadengers stranded. Many have used social media to express their anguish.

It's not a salary at the moment, but whether we're going to survive

Jet Pilot

Jet currently operates only 41 aircraft, only one-third of its original fleet, said in a statement the Directorate General of Civil Aviation (DGCA), adding that the situation was fluid and that the airline could be forced to reduce his flights. floats further in the next few weeks.

Several angry pbadengers were seen claiming reimbursement for canceled flights at Jet's Mumbai offices on Tuesday, a Reuters news agency source said.

The airline's pilots' union also said the pilots had decided to stop flying from April 1 if Jet had not put up a bailout before March 31 and was not providing no adequate road map to pay their late wages.

"It's not the current salary, it's survival," said a pilot at ET Now.

"A rescue agreement"

Jet Airways did not immediately respond to a request for comment.

The 25-year-old airline is in talks with its lenders – state-run banks, led by the State Bank of India (SBI) – and its largest shareholder, the Abu Dhabi-based company, Etihad in order to get a rescue deal, but the talks are protracted and he is struggling to finalize a plan.

While, on the surface, Jet's future is still in the balance, the government has provided behind-the-scenes support indicating that a bailout is likely, Reuters reported Tuesday.

The Indian government has asked state-owned banks to rescue the private airline without bankruptcy, while Prime Minister Narendra Modi seeks to avert thousands of job losses weeks before a general election, sources said.

According to the DGAC, with the current fleet, Jet should operate only about 985 flights per week, 140 flights per day, against an average of about 650 flights per day in March 2018.

The regulator also stated that pilots, cabin crew and ground staff who reported any stress should not be put into service and that the airline should perform regular maintenance of its aircraft, even if they are currently on the ground.

Prabhu, in a separate statement Tuesday, urged officials to constantly monitor the situation at Jet and ensure that safety and the public interest are priorities.

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