https://www.lookchup.com Logo

Jet Airways may shut down temporarily; Naresh Goyal opts out of bidding

The 

Jet Airways

management is learnt to have proposed temporary shutting down of operations till funding is arranged for. 

Posted 3 days ago in News and Politics.

User Image
mayank raikwar
10 Friends
1 Views
2 Unique Visitors
TOP NEWSVIDEOSELECTIONSOPEN IN APP

BUSINESS

Jet Airways may shut down temporarily; Naresh Goyal opts out of bidding

Saurabh Sinha | TNN | Updated: Apr 16, 2019, 13:52 IST



HIGHLIGHTS

Jet founder Naresh Goyal has reportedly withdrawn his expression of interest (EoI) to buy stake in the airlineHis EoI had led to opposition from other players who have also shown interest in the airline

NEW DELHI: The 

Jet Airways

management is learnt to have proposed temporary shutting down of operations till funding is arranged for. The proposal was made at an emergency meeting of the airline board in Mumbai on Tuesday, a day after lenders refused to grant the promised Rs 1,500 crore emergency funding. A formal word from Jet is awaited.

Meanwhile, Jet founder 

Naresh Goyal

has reportedly withdrawn his expression of interest (EoI) to buy stake in the airline. His EoI had led to opposition from other players who have also shown interest in the airline. Other players like Etihad and TPG Capital had even said they would walk out of the bid if the founder does not withdraw himself.

Jet has been operating 5 ATRs and one or two Boeing 737 since last Saturday — down from a fleet of 124 from last November. People running the airline now are finding it increasingly difficult to do so as oil companies often cut fuel supply as Jet has completely run out of funds.


“While there is no money to run the airline, the only reason attempts were being made to continue operating it was to ensure it gets a buyer. Once the airline is shut, what is there to buy? The slots will anyway be available in Delhi, Mumbai, Bangalore etc once it stops flying,” said a source.

Aviation authorities are going to meet airlines to see how Jet’s slots should be distributed among them. SpiceJet and IndiGo are adding aircraft and introducing new flights. Tata Group-Singapore Airlines JV Vistara could be asked to see if they can prepone there wide body operations, say sources.


This churning is visible in stock prices. On Tuesday at 1.15 pm, BSE saw Jet share price down 10% while rivals IndiGo and SpiceJet were up 3% and 6.5%. IndiGo share, in fact, hit a new all-time high of Rs 1,523.
Tags: #jetairways,

More Related Blogs

Article Picture
mayank raikwar 5 days ago 1 Views
Article Picture
mayank raikwar 11 days ago 1 Views
Article Picture
mayank raikwar 19 days ago 1 Views
Article Picture
mayank raikwar 20 days ago 2 Views
Article Picture
mayank raikwar 20 days ago 1 Views
Back To Top