Jet Airways Is On The Verge Of Bankruptcy

On the 19th, local time, the Indian government held an emergency meeting with the company’s management to discuss how to prevent Jet Airways from damaging passenger rights due to financial problems. At the same time, the Indian government asked the central bank to temporarily assist to save Jet Airways from bankruptcy.

According to reports, Jet Airways experienced a financial crisis due to fierce market competition, weak Rupee and rising fuel costs. The debt owed more than 1 billion US dollars. Although the buyer was sought and Etihad Airways may inject capital, the financial situation continued to deteriorate. On the verge of bankruptcy and the cancellation of hundreds of flights, many passengers were affected.

Indian Civil Aviation Minister Prabhu said on Twitter that he has instructed CAAC and Jet Airways to submit relevant reports and requested an emergency meeting on aircraft grounding, early booking, cancellation and refund.

On the 19th, the General Administration of Civil Aviation of India held an emergency meeting with the leadership of Jet Airways to discuss the plan to prevent Jet Airways from damaging passenger rights due to financial problems. According to reports, the Indian government has asked the Reserve Bank of India (RBI, the Central Bank of India) to intervene to temporarily assist Jet Airways in bankruptcy.

The Jet Airways Aircraft Maintenance Engineers Union wrote to the Civil Aviation Administration on the 19th that the maintenance engineer has been owed a three-month salary, which has affected the mental state of the engineers at work, allowing Jet Airways to serve public on flights in India and around the world is running at the cost of passengers safety.

The Civil Aviation Administration of China issued a statement saying that it will ensure that all aircraft of the Jet Airways are maintained in accordance with the approved maintenance plan and will continue to monitor the overall situation and take appropriate measures at the end of the month if necessary.

In the insolvency, Jet Airways has delayed payment to banks, suppliers, aircraft leasing companies and pilots; Jet Airways said it will delay the payment of debt interest to creditors on the 19th due to financial constraints.

Jet Air’s founder Goya gradually developed Jet Airways into one of India’s largest airlines 25 years ago. He wrote to the company’s pilot on the 18th that he needs more time to reach a rescue agreement with the company. The loan group, led by Etihad Airways and the National Bank of India, is continuing negotiations on the rescue agreement.

Albert Aviation

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