The fate of Jet Airways hangs in the balance

April 12, 2019
Jet Airways cancelled international flights
A Jet Airways 737-800 Photo: Facebook/Jet Airways

Debt-ridden Indian carrier Jet Airways appears to have canceled its international flights.

The airline has grounded much of its fleet and on Thursday grounded another 10 planes, prompting conjecture it had dropped below the 20 aircraft India requires an airline to maintain to operate international services.

Indian Aviation Minister Suresh Prabhu tweeted that the government would review issues related to the airline and take the necessary steps to minimize passenger inconvenience.

READ: Rolls-Royce delivers more pain for Boeing 787 operators.

The BBC reported airport websites saying that services to Singapore, London, Amsterdam and two flights to Kathmandu were canceled.

Earlier this month, jet Airways founder Naresh Goyal agreed to sacrifice “every control and interest”: in the embattled carrier.

A debt resolution plan approved by the airline’s board on March 25 involves new funding from the State Bank of India and other lenders of $US281m.

The group is searching for a new investor to take over 75 percent of the airline and reports say the deadline for bids has been extended.

But the BBC said the lenders had only released a fraction of what they had promised and the airline has not been able to pay leasing companies.

It said many analysts feared the airline would not survive the week if immediate cash was not provided to keep the airline running.

Once India’s leading full-service airline, Jet Airways has lost market share to IndiGo and SpiceJet

Reports suggest 24 percent shareholder Etihad, which has financial woes of its own, has told the Indians it will not invest more money in the airline and wants to sell its stake.