Jet Airways lenders finalise on pushing forward with a rescue plan, still no clarity on interim funding

The lenders to India's Jet Airways have stated that they intend to push forward with their plan to rescue the troubled airline but have still not offered any clarification on interim funding, leaving the future of the carrier uncertain.

Earlier, over 1,000 Jet Airways pilots had confirmed that they will go on a strike from April 1 since the airline had not received its interim funding from lenders which had kept the pilots uninformed regarding their four-month salary dues. In fact, last month, Jet's lenders, led by State Bank of India (SBI), had agreed to bail out the airline in a complex deal that involved the banks taking a majority stake while seeking an investor to help revive the company's fortunes. 

The rescue plan also included a $218 million interim loan to keep the airline afloat.  However, a source familiar with the matter told Reuters late on Thursday that the lenders, who also include Punjab National Bank (PNB), were yet to decide on the interim loan for the beleaguered carrier.

The two state-run banks, SBI and PNB, did not have immediate comments on the matter. 

The consortium of SBI-led lenders said bids for selling stake would be invited on 6 April and other options would be explored in case the stake sale efforts do not result in an “acceptable outcome”, PTI reported. 

READ: With No Update On Salary, Jet Airways Pilots Call For A Strike From April 1

Jet Airways is currently operating a fleet of 26 planes, including 15 aircraft on domestic routes. The airline, which is grappling with acute financial woes, had a fleet of around 119 planes. With over 75% of its planes grounded, the cash-strapped airline has reportedly created a gap of more than a million seats between January and March.

On Wednesday, nearly 260 Jet Airways pilots appeared for an interview conducted by carrier SpiceJet in Mumbai. 

Jet Airways has deferred the March salary payment to its employees, citing "complexities" involved in the finalisation of the debt-recast plan, under which the SBI-led consortium of lenders has taken over the management control of the airline. The airline had been delaying the salaries of its pilots, engineers and senior staff since August, who have not been paid since January

(With PTI inputs)