Jet Airways in trouble
The airline said its last flight would operate on Wednesday (17 th April).
The airline has been having financial trouble since a long time and they have accumulated a debt of 1.2
billion dollars. They have been asking lenders for funding since weeks but no one has come forward.
Hence, they have no choice but to suspend all flights as they are not able to pay for fuel or other critical
services. Even their employees and suppliers have not been paid for months.
It was India’s second largest airline having 119 flights. It was flying 600 domestic and 380 international
routes until recently. But dozens of its planes have been seized by creditors leaving only 7 operational
aircrafts.
In a rare move, the Indian government is desperately trying to save Jet Airways, despite it being a
private airline. It has asked state run banks to step in with a bailout plan. A group of investors led by
State Bank of India (SBI ) took control of the airline in March.
The founder of the airline, Naresh Goyal has also stepped down as Chairman amidst the crisis. He owns
52% of the airline but he will most probably lose his share as lenders restructure the debt. 24% of Jet is
owned by Etihad Airways, which has expressed interest in taking more control of the airline.
