Speculation Jet Airways will ground fleet

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April 16, 2019
jet airways grounded

Troubled Indian airline Jet Airways may ground its remaining planes and is now operating just seven aircraft, according to Indian media.

India’s The Economic Times reported that the airline’s management has proposed completely suspending operations while the board looks at expressions of interest from Abu Dhabi’s Etihad, TPG  and Indigo Capital.

It said a cluster of three companies representing founder Naresh Goyal had exited the bidding process.

The newspaper said the airline, which once boasted more than 120 aircraft,  was operating six 70-seater ATR turboprops and a single Boeing 737.

Jet Airways suspended international operations last week and has been grounding planes because it was unable to pay lessors after failing to get an interim loan promised as part of a rescue deal.

The lenders, led by the State Bank of India, were searching for a new investor to take over 75 percent of the airline.

It sent a letter to staff saying that it had extended the cancellation of international operations until Thursday and would update the airline’s board Tuesday.
The airline’s shares slumped as the uncertainty continued and the Bombay Stock Exchange sought clarity over the reports the airline would shut down operations.