Expressing confidence that the debt-laden Jet Airways will soon be able to resolve the financial crisis, the beleaguered carrier Saturday said that its key stakeholders are working towards finalising and subsequently implementing the Bank-led Provisional Resolution Plan (LPRP), ANI reported.
The airline has suspended operations on as many as 13 more international routes till April-end even as it grounded seven more planes due to non-payment of rentals, taking the number of such aircraft to 54. Besides, the airline has also reduced frequencies on seven other overseas routes, mostly from Delhi and Mumbai, according to airline sources.
“Jet Airways is currently operating a curtailed schedule, having made certain proactive adjustments, bearing in mind the likely, yet interim non-availability of some aircraft in its fleet in the near future,” the spokesperson said.
On account of non-payment of dues to its aircraft lessors, the Naresh Goyal-controlled airline is currently operating with 41 aircraft, compared with 119 in its fleet.
On February 14, Jet Airways’ board had approved a Bank-Led Provisional Resolution Plan (BLPRP), whereby lenders would become the largest shareholders in the airline. Following approval from the shareholders, part of debt would be converted into 11.4 crore shares at a consideration of Re 1 apiece as per RBI norms.
A consortium led by State Bank of India is formulating a resolution plan for Jet Airways, which has a debt burden of more than Rs 8,200 crore and needs to make repayments worth up to Rs 1,700 crore by March-end.