June 16, 2019
Latest News
European Union

India carrier Jet Airways cuts international flights

Mumbai (India), Apr 15 (efe-epa).- India's Jet Airways has drastically reduced operations as it looks for an investor to purchase a controlling stake in the airline and help reduce its mounting debt, according to a Dow Jones Newswires made available to EFE on Monday.

The airline, which was India's second largest by market share as recently as last year, has canceled all its international flights and is flying just seven planes as it awaits a cash injection from a consortium of lenders that has taken control of the airline.

The lenders, led by the State Bank of India, last month took control of Jet from founder Naresh Goyal as part of a debt restructuring plan.

The company was founded in 1992 as India's first independent airline when the country opened the industry to private players. Prior to the groundings, Jet Airways offered flights to 56 destinations in India and overseas on a fleet of 119 aircraft.

The company has faltered as India's airline industry has become increasingly competitive in recent years.

"It has been a challenge for everybody but it has affected Jet the worst and possibly the most because he obviously had to play competition catch up and technology catch-up," said Mark Martin, founder of Martin Consulting, which is based in New Delhi and advises clients on the aviation industry.

The airline's debt has spiraled to 85 billion rupees ($1.2 billion). The airline, which has reported losses for the past four consecutive quarters, has defaulted on debt repayments and stopped paying staff.

Abu Dhabi-based Etihad Airways owns a 24 percent stake in the company.

Top officials from Indian Prime Minister Narendra Modi's office met with civil aviation secretary Pradeep Singh Kharola Friday evening to discuss Jet Airways, two people familiar with the matter said.

Modi, who came to power five years ago on an agenda of kick-starting the economy, is currently seeking re-election.

Goyal and his wife Anita Goyal last month resigned from the board of the company as part of the restructuring plan in which the lenders agreed to infuse 15 billion rupees ($216.8 million) into Jet Airways.

Parties had until Friday to submit expressions of interest in making a bid for a controlling stake in Jet Airways. Those expressions of interest will be reviewed before formal bidding starts to take place.

A sale or issuance of shares to investors was expected to be completed in the June quarter, Jet Airways said in a statement last month.

A spokesman for State Bank of India declined to comment and referred the Journal to SBI Capital Markets, which is handling the expression of interests from various bidders.

Jet Airways' 22,000 workers haven't been paid for the past month, the person said. Senior staff including pilots and engineers haven't been paid for three months.

Employees held a protest at Delhi's international airport Saturday calling for the intervention of Modi.

The airline is working to get passengers affected by the cancellations onto flights with alternative airlines or is offering refunds, a spokesman for Jet Airways said.

"Jet Airways regrets the inconvenience caused to its guests due to its current curtailed schedule," the spokesman said in a statement.

Jet's groundings, as well as those of low-cost carrier SpiceJet's Boeing 737 Max aircraft, have increased prices and slowed passenger growth, according to credit rating agency ICRA.

By Corinne Abrams and Debiprasad Nayak

dj/hh

News history
Toyota in pole at Le Mans with Kobayashi driving, Alonso, 2nd, dreams of win

Le Mans (France), Jun 14 (efe-epa).- The driver Kamui Kobayashi secured pole position in his Toyota TS050 ahead of 24 hours of Le Mans, leaving second-place...

HSBC boosts role as Saudi banker

By Rory Jones in Dubai and Margot Patrick in London

Nintendo shifts some production from China

By Takashi Mochizuki

Pepsi executive picked to lead UK's Reckitt

By Saabira Chaudhuri

Boris Johnson says UK must leave EU on Oct. 31 as he launches leadership bid

London, Jun 12 (efe-epa).- Boris Johnson said Wednesday the United Kingdom must leave the European Union on Oct. 31 as he launched his bid to replace Prime...

European Union blocks merger between steelmaking giants Tata, Thyssenkrupp

Brussels, Jun 11 (efe-epa).- The European Commission has decided to block a planned merger between two steelmaking giants that would have formed a landmark...

What's next in payments

By Stella Yifan Xie

The financial-risk secrets that may be hidden in our faces

Shanghai (China), Jun 11 (efe-epa).- What does your face reveal about how big of a financial risk you are, asked Dow Jones in a report made available to EFE...

UK economy shrank in April as Brexit hit car production

London, Jun 10 (efe-epa).- The United Kingdom's economy shrank in April as car makers took the precaution of shuttering their factories in the weeks...

Theresa May officially steps down as UK PM

London, June 7 (efe-epa).- The United Kingdom's Prime Minister Theresa May has on Friday signed a letter of resignation as leader of the Conservative Party.

Credit markets: Treasurys jump on stock fall, rate talk

New York (USA), Jun 4 (efe-epa).- United States government bond prices climbed again, benefiting from a decline in technology stocks and a Federal Reserve...

EU calls for deeper association with Central Asia, says Tusk

Nur-Sultan, May 31 (efe-epa).- The European Union is aiming to strengthen its partnership with Central Asian countries, European Council President Donald...

Behind big deals: No one wants to be Blockbuster Video

By John D. Stoll

EU leaders clash over top bloc roles

By Valentina Pop

Several soccer players arrested in Spain for alleged match-fixing

Madrid, May 28 (efe-epa).- At least 11 soccer players from Spain's first and second divisions have been arrested or were under investigation on suspicion of...

Renault confirms it has received a merger proposal from Fiat Chrysler

Paris, May 27 (efe-epa).- The Renault car manufacturing group confirmed on Monday that it had received a proposal from Fiat Chrysler Automobiles to...

Fiat Chrysler unveils Renault merger proposal

By Sean McLain, Nick Kostov and Eric Sylvers

Hamilton quickest at Monaco as F1 remembers Lauda at free practice sessions

Monaco, May 23 (efe-epa).- Defending world champion Lewis Hamilton set the fastest time around the street circuit of Monte Carlo's capital during both the...

FAA's acting chief won't predict when Boeing 737 MAX will return to flight

By Andy Pasztor

Holland heads into European elections with 2 far-right parties in the running

By Imane Rachidi

India's antitrust watchdog surveys e-commerce firms including Amazon, Walmart

New Delhi, May 22 (efe-epa).- India's antitrust watchdog is assessing the domestic e-commerce sector, a step that could have consequences for Amazon.com...

Ryanair: This year's profit to be dented by Boeing 737 MAX grounding

By Robert Wall

5 countries to watch out for in the run-up to European Parliament elections

By Lara Malvesi

Uber's stock tumbles further

By Maureen Farrell, Corrie Driebusch and Justin Baer

I agree Welcome to news4europe.eu. We use cookies to improve your online experience. Find out more.