Business

Beleaguered Jet Airways Temporarily Shuts Down Operations

Mumbai: Cash-strapped Jet Airways has proposed to temporarily shut down all its operations at its Board meeting here on Tuesday, ET Now said in a report on Tuesday evening.

During the day, there was speculation that the management of Jet Airways (India) Ltd would take a call about shutting down operations, as the company awaits the promised funds from banks in a rescue deal.

While no official communication from Jet Airways as yet, the move could trigger a fresh round of fare hike across the board as the airlines could take advantage of the demand-supply gap.

News channel CNBC TV18 has said that Jet CEO Vinay Dube had been authorised by directors at the board meeting to engage with its lenders one last time and halt operations late Tuesday if no funds arrive.

Jet currently has roughly 44 flights and only about seven operational planes, a senior pilot with the airline and a member of the pilots’ guild told Reuters on Monday.

The airline had more than 120 aircraft operating a year ago, but competition from low-cost carriers such as IndiGo and SpiceJet Ltd, together with high oil prices, hefty fuel taxes and a weak rupee had lately piled on the pressure.

Shares in Jet partially erased earlier losses and were down by 9 per cent in late afternoon trade in Mumbai on Tuesday.

OB Bureau

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