New Delhi: In A close replication of events that unfolded before Kingfisher Airlines was grounded in 2012, India’s largest oil marketing company Indian Oil Corp temporarily halted supply of aviation turbine fuel to cash-strapped Jet Airways across the nation two days in a row.
According to sources, the oil company stopped supply to Jet Airways at noon on Friday resulting in operational disruption for the airline, which is already flying a curtailed schedule. The supply was resumed later in the day around 5 pm.
On Thursday, too, fuel supply to Jet was halted for a few hours during the day.
The development came in light of Jet Airways’ inability to purchase fuel on credit given its financial woes. Low-cost carrier SpiceJet, too, faced fuel supply cuts in 2014 when it was on the verge of a shutdown but later received funding from its founder Ajay Singh.
Jet’s lenders, led by State Bank of India, which have taken control of 50.1 per cent stake in the airline, had said on March 25 they would infuse Rs 1,500 crore in the airline as an emergency measure but banking sources have said that the amount has not yet been pumped in to the airline. SBI is the lead lender to Jet Airways, which has a debt burden of more than Rs 8,000 crore.
Besides, the carrier’s founder Naresh Goyal and wife Anita Goyal quit the board. The shareholding of Goyals have come down to 25 per cent from 51 per cent earlier. On Wednesday, Naresh Goyal, the former chairman of the airline, said he had agreed to every term and condition laid down by lenders to ensure timely release of funds for the airline.
The lenders said on Thursday, after a three-hour long meeting with the Jet Airways’ management, that they will be proceeding with the next step of the airline’s resolution plan inviting bids from potential buyers of their stake in Jet starting Saturday. The once-second largest airline has drastically curtailed its operations since last month following severe cash crunch and is operating only 26 planes of its 119 aircraft fleet.
06/04/19 Indian Express
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According to sources, the oil company stopped supply to Jet Airways at noon on Friday resulting in operational disruption for the airline, which is already flying a curtailed schedule. The supply was resumed later in the day around 5 pm.
On Thursday, too, fuel supply to Jet was halted for a few hours during the day.
The development came in light of Jet Airways’ inability to purchase fuel on credit given its financial woes. Low-cost carrier SpiceJet, too, faced fuel supply cuts in 2014 when it was on the verge of a shutdown but later received funding from its founder Ajay Singh.
Jet’s lenders, led by State Bank of India, which have taken control of 50.1 per cent stake in the airline, had said on March 25 they would infuse Rs 1,500 crore in the airline as an emergency measure but banking sources have said that the amount has not yet been pumped in to the airline. SBI is the lead lender to Jet Airways, which has a debt burden of more than Rs 8,000 crore.
Besides, the carrier’s founder Naresh Goyal and wife Anita Goyal quit the board. The shareholding of Goyals have come down to 25 per cent from 51 per cent earlier. On Wednesday, Naresh Goyal, the former chairman of the airline, said he had agreed to every term and condition laid down by lenders to ensure timely release of funds for the airline.
The lenders said on Thursday, after a three-hour long meeting with the Jet Airways’ management, that they will be proceeding with the next step of the airline’s resolution plan inviting bids from potential buyers of their stake in Jet starting Saturday. The once-second largest airline has drastically curtailed its operations since last month following severe cash crunch and is operating only 26 planes of its 119 aircraft fleet.
06/04/19 Indian Express
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