Lenders to Jet Airways are “reasonably hopeful” that the binding process for the grounded airline, which announced to temporarily suspend operations, will end successfully.
In a statement released on Thursday, the lenders said, “The lenders after due deliberations decided that the best way forward for the survival of Jet Airways is to get the binding bids from potential investors who have expressed EOI and have been issued bid documents on 16th April.”
It added, “Lenders are reasonably hopeful that the bid process is likely to be successful in determining fair value of the enterprise in a transparent manner.”
On Wednesday, Jet Airways, once India’s largest private airline, decided to temporarily suspend operations as a consortium of lenders refused to consider extending emergency funding of Rs 983 crore to keep the airline flying. The airline, which started operations nearly 25 years ago, said it would hence not be able to pay for fuel or other critical services to keep the operations going. “Consequently, with immediate effect, Jet Airways is compelled to cancel all its international and domestic flights. The last flight will operate today (Wednesday),” it said in a stock exchange filing Wednesday.
The closure of the airline’s operations has rendered around 16,500-plus employees including hundreds of pilots, who were not being paid salaries for several months, virtually jobless. In a mail to employees, Jet Airways CEO Vinay Dube said, “We don’t have an answer today to the very important question of what happens to us employees during the sale process.” But he asked them to “keep doing their job as best as possible”.
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