Saddled with debt of more than one billion dollars, Jet Airways is struggling to stay afloat Jet Airways' pilots have threatened to stop flying from April 1 if the cash-strapped airline does not have a rescue plan in place by March 31, a trade union said on Tuesday.
The airline's pilots union has also said that it seeks a proper roadmap from the airline by March 31 on paying their overdue salaries.
"We have decided that either the management lets us know about the progress of the resolution plan and the future of the company by March 31 or we will refrain from flying duties," said NAG (National Aviators Guild) Vice President, Captain Asim Valiani.
The development comes after the government called an emergency meeting as the carrier - which has a debt of more than $1 billion - is struggling to make payments to its creditors and has been forced to cancel hundreds of flights as it fights competition, rupee depreciation and rising fuel costs.
Here are 10 things to know:Jet Airways is currently operating only 41 aircraft, just a third of its original fleet, aviation regulator DGCA or Directorate General of Civil Aviation said in a statement on Tuesday.Civil Aviation Minister Suresh Prabhu asked his officials to call for a meeting to discuss grounding of flights, advance bookings, cancellations, refunds, and any potential safety issues, at the cash-strapped carrier.
(Aviation Regulator Reviewing Airfare Hike On Specific Routes, Says Official)The 25-year-old airline is in talks with its lenders - state-run banks led by State Bank of India (SBI) - and its biggest shareholder, Abu Dhabi-based carrier Etihad, to secure a rescue deal but talks have dragged on and it is struggling to finalise a plan."It is a dynamic situation and there may be further attrition in coming weeks," the aviation regulator said in a statement.
Asserting that it is ensuring that all aircraft in the fleet are maintained in accordance with the approved maintenance programme, DGCA said it is "continuously monitoring overall situation and based on the same, will take appropriate steps by the end of the month, if needed."There are reports that the government has asked state-run banks to bail out Jet Airways for the moment to prevent the airline going bankrupt.The regulator also said that Jet's pilots, cabin crew and ground staff who have reported any kind of stress should not be put on duty, and the airline should carry out regular maintenance of its aircraft even if they are currently grounded.In an alarming letter to the DGCA, the Jet Airways aircraft maintenance engineers' association has written that "it has been arduous to meet financial requirements, which has adversely affected the psychological condition of Aircraft Engineers and therefore the safety of public transport airplanes being flown by Jet Airways across India and the world is at risk."The DGCA said with the current fleet Jet is likely to operate only about 985 flights a week or 140 flights a day - down from an average of about 650 flights a day in March 2018.In a letter to the airline's pilots on Monday, Naresh Goyal, the founder of the airline, said he would need "a further short time" to finalise a rescue deal for the cash-strapped carrier as the process is complex.
Mr Goyal, who transformed Jet into India's biggest full-service carrier from its start 25 years ago, also mentioned ongoing talks for the rescue deal with Etihad Airways, the airline's biggest shareholder, and the group of lenders led by State Bank of India (SBI).Shares in Jet Airways shed as much as 5 per cent on Tuesday to an intraday low of Rs 225.10 apiece on the BSE, underperforming the broader markets whose benchmark was set to close higher for the seventh consecutive session.
The Jet Airways stock has declined 17.5 per cent so far this year.(With agency inputs)Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections.
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