Sunday, May 9, 2021
Home Government and Policy As Jet Airways crisis worsens, Civil Aviation Minister orders emergency meeting on flight safety...

As Jet Airways crisis worsens, Civil Aviation Minister orders emergency meeting on flight safety and grounding of planes

Around of Jet Airways flights have been grounded due to financial crisis

As the crisis in Jet Airways worsened with more number of flights being cancelled, the civil aviation minister Suresh Prabhu has asked the secretary of the ministry to look into the matter and submit a report at the earliest. The minister said that the secretary is to hold an emergency meeting on the grounding of flights by Jet Airways, and Advance bookings, Cancellation, Refunds and Safety issues of the airlines. The secretary will also have to get a report on compliance issues from Directorate General of Civil Aviation.

Jet Airways is facing huge financial crisis, which has resulted in it being unable to pay rental for leased aircraft and interest on finances. Due to non-payment of lease rentals, leases have grounded dozens of aircraft operated by the airlines, resulting in the cancellation of flights. According to reports, total number of grounded aircraft has reached around 60, which is approximately half of the fleet size of 119 planes.

Other than non-payment to creditors, the airline is also facing trouble in paying salaries, and they have not paid salaries to their maintenance staff for three months. In a letter written to DGCA yesterday, Jet Aircraft Engineers Welfare Association said that 3 month’s salary is overdue to them, and also said that the flight safety is at risk. The letter said, “it has been arduous for us to meet our financial requirements, result of which have adversely affected the psychological condition of Aircraft Engineers at work and therefore the safety of public transport airplanes being flown by Jet Airways across India and the world is at risk.” The requested the government to step in ask the airline to pay the dues.

Etihad Airways, which owns 24% in Jet, was to infuse capital into the airlines to solves its financial crisis, but the talks are stalled over several disagreements. Etihad has not agreed to a debt resolution plan proposed by lenders of Jet Airways, led by State Bank of India. According to the proposal, the consortium of lenders, will convert its loans into shares and pump in an additional ₹1,000 crore to raise its stake to 29.5%. On the other hand, Etihad was also expected to infuse between ₹1,600 crore and ₹1,900 crore to raise its shareholding to 24.9%.

Another contentious issue is the perpetuity requirement included in the proposal. The proposal seeks to limit promoter shareholding 22%, but Naresh Goyal is asking it to be dropped. Etihad is also not agreeing to proposal to add two nominee directors from promoter group.

Jet Airways has already defaulted in paying loans and it has informed that it will default in making more payments which are due this month. The Airline has a debt of more than 8400 Rs crore, which continues to rise as interest gets added to that.

In such a scenario, maintenance and safety of the planes can be an issue and that’s why the ministry has stepped in. Despite flight cancellations, the airline has continued to offer discounts and accept advance bookings, which may be looked into by the ministry, and may ask the airline to stop them.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

Iran: 20 year old youth Alireza Fazeli Monfared beheaded by half brother, cousins for being gay

Alireza Fazeli Monfared, a 20 year old Iranian youth, was murdered by his brother and cousins due to his sexual orientation.

Did BJP leader Tejasvi Surya ‘apologise’ for his alleged ‘communal’ remarks on the BBMP bed scam? Here are the facts

After Tejasvi Surya took the names of 17 employees in the BBMP case who are Muslims, Congress party and media houses had attacked him

Chinese research paper, published 6 years ago by Chinese military backed authors, discussed weaponising Coronavirus: Reports

A 2015 research paper by Chinese scientists reveals nefarious plans to weaponise the SARS Coronavirus against the world.

Swati Chaturvedi accused of plagiarizing article on Himanta Biswa Sarma by Hindustan Times editor

Swati Chaturvedi has been accused of plagiarizing an article by Zia Haq, Associate Editor at Hindustan Times.

Subramaniam Swamy calls S Jaishankar a ‘waiter’ and says he tested positive for COVID: Netizens fume, EAM clarifies

Subramanian Swamy stoked controversy after he targeted Dr S Jaishankar by referring to him as a 'waiter' and claiming he was COVID positive

Arvind Kejriwal govt expels 7 journalists from Whatsapp group after report critical of govt handling of oxygen crisis, senior journalists keep mum

The Arvind Kejriwal government has been the darling of the media for a long time but it seems to want absolute devotion

Recently Popular

Comedian Sanket Bhosale who had featured in ad mocking Rahul Gandhi booked for violating Covid-19 norms in Punjab

A week after the vandalism by the Congress workers in Mumbai, the Congress-led Punjab government has now booked comedian Sanket Bhosale, the actor featured in the advertisement, on the pretext of violating Covid-19 regulations during his wedding.

Meet AAP’s ‘Delhi ke Nirmata’: Who is Navneet Kalra, the businessman on the run after oxygen hoarding scandal was busted

Oxygen Concentrators have been found at Khan Chacha, Nege & Ju bar and Town Hall restaurants in Delhi, all owned by Navneet Kalra

Cricketer Irfan Pathan accused of extra-marital affair with cousin sister, girl’s in-laws allege fake dowry case

According husband of the woman, the relationship between his wife and Irfan Pathan goes back a long time ago and continues even now

Arvind Kejriwal govt expels 7 journalists from Whatsapp group after report critical of govt handling of oxygen crisis, senior journalists keep mum

The Arvind Kejriwal government has been the darling of the media for a long time but it seems to want absolute devotion

Asianet News journalist calls Bengalis ‘Pakistanis’, says no use showing ‘Sanghis’ getting thrashed in times of Covid-19

Asianet News has issued an apology after their journalist said that they are deliberately not covering Bengal violence.

This only hurts nation: Several CMs, including YS Jagan Mohan Reddy slam UPA’s Jharkhand CM for petty politics over call by PM Modi

Jharkhand CM Hemant Soren took potshots at PM Modi, after he called to inquire about ongoing Coronavirus pandemic in the State
- Advertisement -

 

Connect with us

254,879FansLike
540,061FollowersFollow
24,300SubscribersSubscribe