Thursday, July 11, 2019

Fund-Raising An Internal Matter Of Jet Airways, Government Has No Role: Aviation Minister

The Central government on Thursday ruled out raising funds for the beleaguered Jet Airways and asserted that its revival was now possible only under Insolvency & Bankruptcy Code (IBC).

"Each airline prepares its business plan on the basis of its own market assessment and liabilities. Mobilizing financial resources and ensuring efficient operations as per business plans are the responsibilities of the airline," Civil Aviation Minister Hardeep Singh Puri informed the Lok Sabha.

"The government has no role in raising funds for Jet Airways (India) Limited, as it is an internal matter of the airline," he added.

In a written reply, the Minister said that the State Bank of India has filed an application under the Insolvency and Bankruptcy Code, 2016, which has been admitted by National Company Law Tribunal (NCLT), Mumbai, to work out a resolution plan under the said code.
"Revival of the airline is now possible only under IBC," he said.
Responding to supplementaries in the lower house on the issue, Mr Puri said that providing facilities to the public was a concern for the government, but it does not make the "business model" for private airline operators.
"They conduct their own business. They have agreements. They take loans. It is not for the government to step in," he said adding that the government had no intention of stepping into private airline operators.
He said Jet Airways reported aggregated losses during the last few quarters which eroded its liquidity and jeopardised its ability to sustain its operations.
11/07/19 ANI/NDTV
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