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Indian Government To Probe Jet As Airline Teeters: 10 Points

Jet Airways is fighting for survival as it also owes money to lessors, suppliers, pilots and oil companies.

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Indian Government To Probe Jet As Airline Teeters: 10 Points

Mumbai-based Jet Airways is struggling to stay afloat with more than $1.2 billion of bank debt

The government said on Friday that it would investigate Jet Airways' ability to fly, a day after the cash-strapped airline suspended most of its international flights. Civil Aviation Minister Suresh Prabhu said in a tweet that his ministry would "review issues related to Jet Airways" and "take necessary steps" to minimise passenger inconvenience and ensure their safety. "Jet Airways had proactively cancelled all west-bound long haul flights from India from Thursday until Friday morning," reported news agency Reuters quoting a company spokesman.
Here are ten things to know about the Jet Airways crisis:
  1. Mr Prabhu on Friday directed Civil Aviation Secretary Pradeep Singh Kharola to review issues concerning Jet Airways.
  2. "Directed Secretary MoCA to review issues related to Jet Airways. Asked him to take necessary steps to minimise passenger inconvenience and ensure their safety," Mr Prabhu tweeted in the morning.
  3. Jet Airways will operate only nine planes -- two Boeing 737s and seven regional Jet ATRs -- on Friday, news agency Press Trust of India reported citing industry sources.
  4. With the fresh groundings on Thursday, a calculation by Reuters pegs the size of Jet Airways' operational fleet at slightly over a dozen planes, down from over 120 aircraft last year.
  5. The airline now owes more than Rs 3,500 crore to passengers on account of flight cancellations alone, Press Trust of India reported citing sources.
  6. The Mumbai-based airline with more than $1.2 billion of bank debt, Jet Airways is fighting for survival as it also owes money to lessors, suppliers, pilots and oil companies.
  7. The suspension of international flights comes even as Jet Airways' lenders still try to seek expressions of interest in the debt-laden carrier from potential investors interested in turning around the airline.
  8. The group of Jet Airways' lenders, led by State Bank of India (SBI), have been seeking a new investor to take a stake of up to 75 per cent in the airline. Initial bids were to be submitted by the end of Wednesday, but SBI has extended the deadline to April 12.
  9. On Wednesday, Indian Oil Corporation halted the supply of fuel to Jet Airways for a few hours over non-payment of dues.
  10. Jet Airways shares rose as much as 1.2 per cent to Rs 263.50 on the BSE, outperforming the Sensex which was trading on a flat note.

(With agency inputs)





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Highlights

1
Jet Airways cancels west-bound flights from Thursday till Friday morning
2
Government promises "necessary steps" to minimise passenger inconvenience
3
Airline owes over Rs 3,500 crore to passengers due to cancellations

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