Jet Airways indefinitely cancels flights from Abu Dhabi
Jet Airways has grounded operations at Abu Dhabi Airport since Monday due to operational reasons. Jet Airways has a debt of Rs. 8,200 crore and needs to repay Rs. 1,700 crore by the end of March. The company is servicing its domestic debt but has already defaulted on an ECB payment.
The company is considering several fundraising options on the back of a huge liquidity crunch which forced the airline to cancel flights in large numbers, delay salary payments to its engineers and pilots.
Abu Dhabi is an international hub for Jet Airways along with Amsterdam which functions as the company’s gateway for European operations and beyond.
The company has proactively taken certain adjustments to its flight schedule and has also informed the regulator Directorate General of Civil Aviation and its passengers about these changes.
On February 14, Jet Airways' board had approved a bailout plan by which the lenders led by State Bank of India would convert the debt owed to them into equity at a nominal price Re. 1. This would make lenders the largest shareholders in the company.
On Monday, Jet Airways was trading at Rs. 237.45 per share, up by 1.06 per cent on the BSE